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Oberoi Realty-------------------------------------------------------------------Maintain OUTPERFORM
Strong set of results right away
● Oberoi Realty reported strong 3Q FY11 results, as PAT at Rs2.1
bn went up 115% QoQ and 57% YoY. Revenue at Rs4 bn
witnessed strong growth (up 135% QoQ and 89% YoY) owing to
the commencement of revenue recognition in Exquisite-I.
● Oberoi Realty sold 0.15 mn sq ft in 3Q11 at an average realisation
of Rs13,480/sq ft. 0.09 mn sq ft was sold in its Splendor Grande
project, which was launched in 3Q11. 0.06 mn sq ft was sold in
Exquisite-I and the rest in Oberoi Splendor. The company intends
to launch Exquisite-II in 4Q11, Exotica-I in Mulund in 1Q12 and
Oasis project in Worli in 2Q12.
● Operating cash flow after interest and taxes stood at negative
Rs367 mn for 3Q11 and positive Rs291 mn for 9M11. The
company is waiting for the right opportunity to expand its land
bank and expects land prices to correct in the near term.
● Management indicated that it would be flexible on pricing in case
the market witnesses any slowdown in volumes, which we believe
is the right strategy. We maintain our OUTPERFORM rating
Strong 3Q FY11 results
Oberoi Realty reported strong 3Q FY11 results, as PAT at Rs2.1 bn
went up 115% QoQ and 57% YoY and was 4% ahead of our
expectations. Revenue at Rs4 bn witnessed strong growth (up 135%
QoQ and 89% YoY) owing to the commencement of revenue
recognition in Exquisite-I project, which contributed Rs2.1 bn to
revenues. EBITDA margin at 61.9% went up 277 bp QoQ but declined
219 bp YoY. Tax rate realisation for the quarter stood at 21.7%. EPS
for 3Q11 stood at Rs6.3 and 9M11 EPS stood at Rs11.6.
Series of launches planned over next few quarters
Oberoi Realty sold 0.15 mn sq ft in 3Q11 at an average realisation of
Rs13,480/sq ft. 0.09 mn sq ft was sold in its Splendor Grande project,
which was launched in 3Q11. 0.06 mn sq ft was sold in Exquisite-I
and the rest in Oberoi Splendor. The company has an inventory of
about 1.03 mn sq ft across its projects. Leasing and hospitality income
stood at Rs518 mn. The company intends to launch Exquisite-II in
4Q11, Exotica-I in Mulund in 1Q12 and Oasis project in Worli in 2Q12.
Operating cash flow after interest and taxes stood at negative Rs367
mn for 3Q11 and positive Rs291 mn for 9M11. The company is
waiting for the right opportunity to expand its land bank and expects to
face little competition, as most other developers are already cash
strapped and have significant debt repayment commitments. On the
government rethinking on granting extra FSI in lieu of public parking,
management indicated that suburbs (where FSI goes up from 2.0 to
2.5) are likely to be exempted and Oberoi is unlikely to be impacted
materially.
Maintain OUTPERFORM, target price of Rs309
Management indicated that it would be flexible on pricing in case the
market witnesses any slowdown in volumes, which we believe is the
right strategy in the current environment. Revenue recognition on
Splendor Grande is expected to commence in 4Q FY11, which should
boost profitability. We maintain our OUTPERFORM rating on the stoc
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Oberoi Realty-------------------------------------------------------------------Maintain OUTPERFORM
Strong set of results right away
● Oberoi Realty reported strong 3Q FY11 results, as PAT at Rs2.1
bn went up 115% QoQ and 57% YoY. Revenue at Rs4 bn
witnessed strong growth (up 135% QoQ and 89% YoY) owing to
the commencement of revenue recognition in Exquisite-I.
● Oberoi Realty sold 0.15 mn sq ft in 3Q11 at an average realisation
of Rs13,480/sq ft. 0.09 mn sq ft was sold in its Splendor Grande
project, which was launched in 3Q11. 0.06 mn sq ft was sold in
Exquisite-I and the rest in Oberoi Splendor. The company intends
to launch Exquisite-II in 4Q11, Exotica-I in Mulund in 1Q12 and
Oasis project in Worli in 2Q12.
● Operating cash flow after interest and taxes stood at negative
Rs367 mn for 3Q11 and positive Rs291 mn for 9M11. The
company is waiting for the right opportunity to expand its land
bank and expects land prices to correct in the near term.
● Management indicated that it would be flexible on pricing in case
the market witnesses any slowdown in volumes, which we believe
is the right strategy. We maintain our OUTPERFORM rating
Strong 3Q FY11 results
Oberoi Realty reported strong 3Q FY11 results, as PAT at Rs2.1 bn
went up 115% QoQ and 57% YoY and was 4% ahead of our
expectations. Revenue at Rs4 bn witnessed strong growth (up 135%
QoQ and 89% YoY) owing to the commencement of revenue
recognition in Exquisite-I project, which contributed Rs2.1 bn to
revenues. EBITDA margin at 61.9% went up 277 bp QoQ but declined
219 bp YoY. Tax rate realisation for the quarter stood at 21.7%. EPS
for 3Q11 stood at Rs6.3 and 9M11 EPS stood at Rs11.6.
Series of launches planned over next few quarters
Oberoi Realty sold 0.15 mn sq ft in 3Q11 at an average realisation of
Rs13,480/sq ft. 0.09 mn sq ft was sold in its Splendor Grande project,
which was launched in 3Q11. 0.06 mn sq ft was sold in Exquisite-I
and the rest in Oberoi Splendor. The company has an inventory of
about 1.03 mn sq ft across its projects. Leasing and hospitality income
stood at Rs518 mn. The company intends to launch Exquisite-II in
4Q11, Exotica-I in Mulund in 1Q12 and Oasis project in Worli in 2Q12.
Operating cash flow after interest and taxes stood at negative Rs367
mn for 3Q11 and positive Rs291 mn for 9M11. The company is
waiting for the right opportunity to expand its land bank and expects to
face little competition, as most other developers are already cash
strapped and have significant debt repayment commitments. On the
government rethinking on granting extra FSI in lieu of public parking,
management indicated that suburbs (where FSI goes up from 2.0 to
2.5) are likely to be exempted and Oberoi is unlikely to be impacted
materially.
Maintain OUTPERFORM, target price of Rs309
Management indicated that it would be flexible on pricing in case the
market witnesses any slowdown in volumes, which we believe is the
right strategy in the current environment. Revenue recognition on
Splendor Grande is expected to commence in 4Q FY11, which should
boost profitability. We maintain our OUTPERFORM rating on the stoc
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