Oberoi Realty (OBEROIRLTY) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue rose 11.25% YoY to ₹129,200.70 lakh; PBT increased 14.87% to ₹64,952.56 lakh and total comprehensive income rose 21.43% to ₹45,998.99 lakh.

• Residential sales reached 322,563 sq. ft. of RERA carpet area, versus 306,225 sq. ft. in FY17, despite subdued sector performance.

• The Board recommended a ₹2 per share dividend, equal to 20% of paid-up equity capital, unchanged from FY17.

Financial highlights

• Consolidated revenue from operations was ₹126,542.90 lakh, up 13.62% YoY; other income fell to ₹2,657.80 lakh from ₹4,760.29 lakh.

• Consolidated PAT was ₹45,880.32 lakh versus ₹37,858.76 lakh; basic and diluted EPS rose to ₹13.51 from ₹11.15.

• Standalone total revenue increased 14.13% to ₹108,334.18 lakh; PBT rose 24.11% to ₹59,093.84 lakh and PAT was ₹41,716.78 lakh versus ₹32,064.97 lakh.

• Consolidated operating cash flow was an outflow of ₹20,582.80 lakh, compared with an inflow of ₹17,382.93 lakh in FY17; investing cash outflow was ₹58,825.01 lakh.

Outlook and guidance

• Focus remains on development opportunities in and around Mumbai, with land parcels in NCR and Bengaluru also being actively considered case by case.

• RERA-driven sector consolidation may create opportunities to acquire land or enter joint-development and development-management arrangements; sustained growth depends on adequate policy and regulatory support.

• A ₹555 crore bid for approximately 60 acres in Thane was selected in September 2017; acquisition remains subject to bid conditions and statutory and regulatory approvals.