Oberoi Realty Q1 profit falls 20.2% on fewer bookings, higher costs

BENGALURU (Reuters) - India's Oberoi Realty Ltd on Monday reported a 20.2% fall in quarterly profit, hurt by weaker sales and higher expenses.

The real-estate developer's consolidated net profit fell to 3.22 billion rupees ($39.14 million) for the quarter ended June 30 from 4.03 billion rupees a year earlier.

Oberoi's booking value dropped by 37.5% year-on-year dragging revenue from operations to 9.10 billion rupees, slightly lower than last year.

Meanwhile, total expenses surged by nearly 10% driven by a spike in operating costs.

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KEY CONTEXT

Indian real-estate companies are seeing their sales soften as near-term demand for housing cooled off during the quarter after a year of robust demand.

The office space segment also saw a decline in demand, triggered by a slowdown in the IT sector.

Oberoi Realty's rival DLF also reported a dip in revenue earlier this month, while Godrej Properties and Sobha are yet to announce their earnings.

PEER COMPARISON

Valuation (next 12 Estimates Analysts

months) (next 12 '

months) sentimen

t

RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div

TDA Sales growth growth rating* analyst price yield

s target** (%)

Oberoi Realty Ltd OEBO. 21.51 16.80 NULL 22.22 2.76 Buy 23 1.10 0.36

NS

DLF Ltd DLF.N 42.39 53.19 NULL 18.74 31.01 Buy 17 0.99 0.78

S

Godrej Properties GODR. 54.27 79.83 NULL 17.69 39.40 Buy 19 1.14 NULL

Ltd NS

Sobha Ltd SOBH. 17.52 10.45 NULL 17.45 106.61 Strong 16 0.79 0.48

NS Buy

** Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from Refinitiv

-- ($1 = 82.2610 Indian rupees)

 

(Reporting by Biplob Kumar Das in Bengaluru; Editing by Sohini Goswami)