Oberoi Realty Q1FY22 Result & Conference Call Highlights

Q1FY22 Result update:

• The total consolidated revenue for Q1 FY 2022 was Rs. 294 crores as against Rs. 126 crores for Q1 FY 2021 and Rs. 800 crores for Q4 FY 2021.
• The consolidated PBT for this quarter stood at Rs. 109 crores as against Rs. 39 crores for the same quarter last year.
• The consolidated PAT for this quarter stood at about Rs. 80 crores as against Rs. 29 crores for the same quarter last year.

Segment Revenue:

Investment Properties:

• Oberoi Mall: The company has not recognized any revenues for the non-operational stores.
• COMMERZ (office space): Contributed about Rs. 7 crores to the operating revenue for this quarter as against Rs. 4 crores for Q1 FY 2021 and Rs. 6 crores for Q4 FY 2021.
• COMMERZ II: Contributed about Rs. 32 crores for this quarter as against Rs. 29 crores for the same quarter last year, and about Rs. 32 crores for Q4 FY 2021. The EBITDA margins in this vertical are in excess of over 90%.
• The Westin Mumbai Garden City:  Contributed about Rs.7 crores to the operating revenue for this quarter, as against Rs. 2 crores for Q1 FY 2021, and about Rs. 12 crores for Q4 FY 2021.

Concall Highlights:

• The management claimed that they all are back in business and they aren’t seeing any impact of the rollback as such.
• For the overall residential vertical to summarize during the quarter, the total booking value across all the residential apartments came at Rs. 170 crores and the collections during the quarter was at about Rs. 639 crores
• The company has increased its team.
• Commerz III is where the company made the FSI payments, and the construction cost is for both Commerz III as well as the Sky City Mall. And just to add, Commerz III is the building where Morgan Stanley taking the office space.
• Eternia and Enigma are at about 64%- 67% completion, and the deliveries are expected in the next three to four quarters.
• The company is looking for a redevelopment project where they could generate revenue between Rs. 500 crores to Rs. 700 crores. So, these will be like short cycle projects, like single phase and go launch it and exit in like two, three years. For the same company has created multiple project directors who will look after the redevelopment for 10-15 projects & will execute the same.
• The company is optimistic about resolving the issue of the Shivshahi Society. They are fully supporting the society to help them get out of this and then get into the development phase but its a complicated project due to its ongoing litigation issue. Once the issue gets resolved, the company will launch within 6 to 9 months.
• Due to increased input cost, its difficult to sustain at current price level. In future, the real estate prices are likely to go up.
• The company is looking to launch one tower each in Goregaon, Borivali and Thane, during the Diwali.
• The company is looking to expand beyond Mumbai.