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)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.