Oberoi Realty's (ORL) Q3FY21 sales volume at 5.1 lakh sq feet was up a staggering ~2.3x YoY, driven by strong volumes across its projects. On the financials front, revenues improved 57.1% YoY to Rs. 828.4 crore wherein residential revenues were at Rs. 703.3 crore, up 84% YoY, given the sale of complete/near complete projects like Esquire, Enigma and Sky City translated into high revenue recognition. The washout performance in hospitality continued with revenues of Rs. 11.1 crore vs. Rs. 38.2 crore in Q3FY20, down 71% YoY, albeit sharply better than Rs. 6.4 crore in Q2, up 74.4% QoQ. Rental revenues (from mall and office assets) were at Rs. 104 crore, up 13.5% YoY. EBITDA margin improved 258 bps YoY to 46.2% on account of strong revenue recognition. PAT at Rs. 286.7 crore, was up 93.4% YoY, owing strong operating performance.
Valuation & Outlook
ORL's strong sales volume has been aided by the stamp duty cut and preference towards ready/near completion properties. Thus, the launches and their response ahead will be key for volume traction ahead. We incorporate the robust volume traction seen and also bake in strong volumes in FY22 & FY23 given the launch pipeline, which drives our upgrade in NAV valuations. We maintain BUY with a revised target price of Rs. 635/share (earlier Rs. 485).
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_OberoiRealty_Q3FY21.pdf
Shares of OBEROI REALTY LTD. was last trading in BSE at Rs.536.45 as compared to the previous close of Rs. 552. The total number of shares traded during the day was 28146 in over 2053 trades.
The stock hit an intraday high of Rs. 553.1 and intraday low of 531. The net turnover during the day was Rs. 15303284.