Oberoi Realty Q4 PAT up at Rs 788 cr on strong demand for luxury projects

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 Rs 788 crore ($94.39 million), compared with Rs 480 crore a year earlier.

 

Analysts had expected the company to report a profit of Rs 400 crore, 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 Rs 1,315 crore.

 

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 on Monday reported a rise in its fourth-quarter profit, sustained by momentum from its previous project launches, while Godrej Properties 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.

First Published: May 14 2024 | 8:40 PM IST