Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Generating cash
Oberoi’s 1QFY12 profit was ahead of expectations on higher other income
and sustained strong margins. 1Q new project sales at 210k sf declined
27% QoQ as new launch enthusiasm waned. Sales at its old projects were
slow at just 4% of inventory and pricing flat everywhere, highlighting the
Mumbai property slowdown. Balance sheet added a further Rs1bn to its
cash pile, which may grow further as new launches are imminent.
Maintain O-PF.
Results ahead of expectations
Oberoi’s 1Q earnings grew 33% YoY to Rs1.1bn, ahead of estimates on higher
other income and better margins. Revenues, at Rs1.6bn were flat YoY/down
40% QoQ as no new project entered revenue recognition. Ebitda grew 7%
YoY to Rs903m, led by a margin gain of 3.2ppt YoY realizations. Other income
of Rs542m had a Rs210m one-off gain from sale of Goa hotel project.
Sales down QoQ as new launch enthusiasm wanes; Prices flat
1QFY12 sales declined 27% QoQ to 210ksf. Sales declined by 39% QoQ to
167k in the Esquire project where new launch enthusiasm of previous quarter
was missing. Oberoi sold 25 units or 4% of its inventory in other projects –
reflecting continued weak sales momentum in Mumbai. Oberoi maintained the
base selling prices of all its projects as weak Mumbai property markets and
higher mortgage rates make it tough to pass along rate increases.
Investment properties 37% of Ebitda
Oberoi derived 37% of its Ebitda from rentals and hospitality business –
lending support to P&L as well as cash flows. Occupancy at its mall and office
at the Goregaon complex was at 94% and 95% respectively in 1Q. Westin
hotel reported an Ebitda of Rs46m (22% margins) in a seasonally weaker
quarter. We expect an 18% increase in investment property revenues led by
ramp-up of the hotel. Oberoi is also investing in office properties for sale as
well as lease where we expect a Rs2.5bn investment in FY12.
Operations cash flow positive, Worli launch imminent
Net cash at Oberoi increased Rs1.0bn QoQ to Rs15.6bn during 1Q. Rs600m
came from one-time asset sale and remainder Rs400m is operational surplus
post continuing investment in the investment properties. Oberoi has also
started construction at its high-end Worli property where company expects to
now launch sales in 2HFY12. Strong balance sheet and cash flow imply that
Oberoi should trade closer to its NAV than the current 23% discount.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Generating cash
Oberoi’s 1QFY12 profit was ahead of expectations on higher other income
and sustained strong margins. 1Q new project sales at 210k sf declined
27% QoQ as new launch enthusiasm waned. Sales at its old projects were
slow at just 4% of inventory and pricing flat everywhere, highlighting the
Mumbai property slowdown. Balance sheet added a further Rs1bn to its
cash pile, which may grow further as new launches are imminent.
Maintain O-PF.
Results ahead of expectations
Oberoi’s 1Q earnings grew 33% YoY to Rs1.1bn, ahead of estimates on higher
other income and better margins. Revenues, at Rs1.6bn were flat YoY/down
40% QoQ as no new project entered revenue recognition. Ebitda grew 7%
YoY to Rs903m, led by a margin gain of 3.2ppt YoY realizations. Other income
of Rs542m had a Rs210m one-off gain from sale of Goa hotel project.
Sales down QoQ as new launch enthusiasm wanes; Prices flat
1QFY12 sales declined 27% QoQ to 210ksf. Sales declined by 39% QoQ to
167k in the Esquire project where new launch enthusiasm of previous quarter
was missing. Oberoi sold 25 units or 4% of its inventory in other projects –
reflecting continued weak sales momentum in Mumbai. Oberoi maintained the
base selling prices of all its projects as weak Mumbai property markets and
higher mortgage rates make it tough to pass along rate increases.
Investment properties 37% of Ebitda
Oberoi derived 37% of its Ebitda from rentals and hospitality business –
lending support to P&L as well as cash flows. Occupancy at its mall and office
at the Goregaon complex was at 94% and 95% respectively in 1Q. Westin
hotel reported an Ebitda of Rs46m (22% margins) in a seasonally weaker
quarter. We expect an 18% increase in investment property revenues led by
ramp-up of the hotel. Oberoi is also investing in office properties for sale as
well as lease where we expect a Rs2.5bn investment in FY12.
Operations cash flow positive, Worli launch imminent
Net cash at Oberoi increased Rs1.0bn QoQ to Rs15.6bn during 1Q. Rs600m
came from one-time asset sale and remainder Rs400m is operational surplus
post continuing investment in the investment properties. Oberoi has also
started construction at its high-end Worli property where company expects to
now launch sales in 2HFY12. Strong balance sheet and cash flow imply that
Oberoi should trade closer to its NAV than the current 23% discount.
No comments:
Post a Comment