India's Oberoi Realty beats quarterly profit view on higher prices

Oberoi Realty

14/05/2024 15:25

May 14 (Reuters) - Indian real estate developer Oberoi Realty on Tuesday
reported a bigger-than-expected fourth-quarter profit, aided by higher prices
and strong demand for its luxury projects.
    The Mumbai-based developer, which deals mainly in luxury residential
properties, said its consolidated net profit for the quarter ended March 31
stood at 7.88 billion rupees ($94.39 million), compared with 4.8 billion rupees
a year earlier. 
    Analysts had expected the company to report a profit of 4 billion rupees, as
per LSEG data.
    India's real estate market is seeing a surge in demand for homes,
particularly luxury properties. Unlike other segments, the luxury market seems
unfazed by rising property prices.
    Revenue from operations rose nearly 37% to 13.15 billion rupees.
    The company reported a slight rise in booking numbers to 228 units in the
fourth quarter from 207 units a year ago.
    Analysts at HDFC Securities noted that the company had raised prices by
around 10-15% across its projects. Jefferies analysts had earlier said that the
company was set to post its best quarter of FY24.
    Its larger peer DLF  DLF.NS  on Monday reported a rise in its fourth-quarter
profit, sustained by momentum from its previous project launches, while Godrej
Properties  GODR.NS  reported a drop in revenue in the same quarter, weighed by
muted pricing in the Mumbai market. 
    Company also recommended a final dividend of 2 rupees per share for the
financial year ended March 31, 2024.
    Oberoi's stock has climbed 5.26% so far this year, while the Nifty realty
index rose about 22% in the same period. 
     


($1 = 83.4800 Indian rupees)

 (Reporting by Anisha Ajith and Yagnoseni Das in Bengaluru; Editing by Ravi
Prakash Kumar)
 ((anisha.ajith@thomsonreuters.com;))