Oberoi Realty - Attractive Launch Pipeline; Result Update Q2FY15 :: Edelweiss, PDF link

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->

Oberoi Realty (Oberoi) reported Q2FY15 revenue of INR1,855mn, surpassing our INR1,682mn estimate, led by higher revenue in Oberoi Exquisite. The company’s sales bookings disappointed at just 41,150sft (67,700sft in Q1FY15), with Oberoi Esquire selling just 6,500sft (44,000sft in Q1FY15). Though reported numbers are subdued, we highlight that the company has built a strong line up of projects across Mumbai for a total sale value of over ~INR200bn, which will propel volumes, revenues and cash flows. We further highlight that leasing in Commerz-II is poised to commence with other developers’ commercial inventory largely leased out in Goregaon and no new supply coming in.

Sales bookings disappoint

Oberoi reported revenue of INR1,855mn, surpassing our INR1,682mn estimate, led by higher revenue inOberoi Exquisite. Accordingly, the company’s EBITDA and PAT too came in above our estimates at INR1,118mn and INR705mn, respectively. Sales bookings were weak during Q2FY15 at 41,150sft (67,700sft last quarter). While Oberoi Exquisite reported bookings of 34,500sft (23,600sft last quarter), Oberoi Esquiredisappointed at just 6,500sft against 44,000sft in previous quarter.

Robust growth trajectory

While reported numbers are subdued, we highlight that Oberoi has built a robust project pipeline. We expect sales to ramp up to 0.77msf for INR15,186mn and 2.04msf for INR40,315mn in FY15E and FY16E, respectively, against 0.21msf for INR5,577mn in FY13. This will be led by pick up in Oberoi Exquisite(completed) sales and launch of Oasis, Worli, Oberoi Splendor – Prisma, Oberoi Exotica, Mulund in FY15 and Oberoi Exquisite III & Borivali residential in FY16. We further highlight that leasing in Commerz-II is poised to commence, with other developers’ commercial inventory largely leased out in Goregaon and no new supply coming in. Management has indicated that it is in advanced negotiations to lease out its first unit in the building.

LINK

https://www.edelweiss.in/research/Oberoi-Realty--Attractive-Launch-Pipeline;-Result-Update-Q2FY15/27309.html