30 Jul , 2021 By : Kanchan Joshi
Shares of Mumbai-based Oberoi Realty Ltd were under pressure on Friday following the company's weak June quarter earnings. The stock fell more than 2% on the National Stock Exchange in opening deals on Friday.
Restrictions due to the second wave of the coronavirus pandemic weighed on the company's residential sales in the June quarter. Pre-sales declined 91% sequentially to Rs170 crore. Also, there was pressure on realisations, which softened sequentially and annually.
Some impact of the covid-led prolonged work from home trend was also felt on its annuity portfolio. Occupancy at Commerz II declined 140 basis points (bps) on a year-on-year basis (y-o-y) to 97.4% weighing on its revenue growth. One basis point is one-hundredth of a percentage point.
Revenue from Oberoi Mall fell 90% sequentially to Rs3.2 crore. In the hospitality segment, Westin's revenue came in at Rs7.8 crore down 36% sequentially with subdued annual recurring revenue at Rs4.685, down sequentially and annually.
High operating costs and weak realisations weighed on operating margins. Ebitda margin fell 520bps y-o-y to 43.9%. Ebitda is short for earnings before interest, tax, depreciation and amortization.
On a consolidated basis, its net profit at Rs80.81 crore was down 72% sequentially.
The developer's consolidated revenues at Rs294.77 crore were significantly lower than Rs800.87 crore in the previous quarter.
While the company is among the beneficiaries of the consolidation in the sector, the sharp run-up in its stock price already factors that in, analysts said. Going ahead, recovery of sales and improvement in rentals would be key upside triggers for the stock, added analysts.
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