Oberoi Realty has got the best mix of Portfolio. With its constant launches of new Towers both in Goregaon, Thane markets and the steady income from Malls and Commerz of Rent is helping the Company steadily grow. Oberoi Garden City, Thane launch is the newest for Oberoi Realty Ltd and it has taken off very well. As per the real estate local brokers in the launch date of mid October they have sold nearly 220 + Flats which gives a flying start to Oberoi in Thane market. Oberoi has huge land parcels in Thane. The residual inventory in Sky City and Oberoi 360 and incoming times the Ritz Carlton shall start giving revenue to Oberoi Realty Ltd. There project in Gurgaon is yet to take off, but there is a lot in stock for the Company to review.
Investors in the past starting from the year 2001 have minted money in Oberoi Realty Ltd properties in Mumbai and the same goes for the Oberoi Realty Stock which is touching new highs every few months.
Key Highlights of Oberoi Realty's Q2 FY25 Performance:
Profit Growth:
- Oberoi Realty reported a 29.05% growth in net consolidated profit in Q2 FY25, with a profit after tax of 589.44 crore, compared to 456.76 crore in the same quarter last year.
Total Income:
- The company's net consolidated total income increased by 9.23%, reaching 1,358.62 crore in Q2 FY25, compared to 1,243.80 crore in Q2 FY24.
Dividend Announcement:
- The board declared a second interim dividend of ?2 per equity share for FY 2024-25.
Debt and Capital Measures:
- Oberoi Realty redeemed 70 crore of Series III NCDs through face value reduction.
- The board approved raising up to ?6,000 crore through equity and equity-linked instruments, including a qualified institutional placement (QIP).
Financial Ratios (as of September 30, 2024):
- Net worth: 14,799.98 crore.
- Debt-equity ratio: 0.14.
- Current liability ratio: 0.56.
- Total debts to total assets ratio: 0.10.
- Operating margin: 61.66%.
- Net profit margin: 43.39%.
Nirmal Lifestyle Resolution:
- The NCLT approved Oberoi Realty’s resolution plan for Nirmal Lifestyle (NLRPL) as part of its corporate insolvency process.
- Oberoi Realty will make payments of 273 crore to creditors and cover insolvency costs.
- The company will also subscribe to 100% of NLRPL's equity shares, valued at 100 lakh within 90 days.
Implications:
- Strong Profit Growth: The robust profit growth reflects the company's healthy financial position and success in managing costs effectively, as shown by its high operating and net profit margins.
- Strategic Debt Management: The redemption of NCDs and approval to raise ?6,000 crore will strengthen Oberoi Realty’s financial flexibility, enabling it to capitalize on growth opportunities.
- Nirmal Lifestyle Acquisition: The NCLT approval for Nirmal Lifestyle’s resolution plan enhances Oberoi Realty’s strategic expansion, potentially adding valuable assets to its portfolio.
This performance positions Oberoi Realty as a significant player in the real estate sector, with a balance of growth, financial stability, and strategic acquisitions.