Shares of Oberoi Realty are down 8% and are the second worst performers on the Nifty Realty Index after its December quarter results.
The company's pre-sales volumes for the December quarter stood at 0.26 million square feet, which grew by 18% sequentially as well as on a year-on-year basis. In value terms pre-sales stood at ₹786 crore, which grew by 25% from last year. However, when compared to the September quarter, the number was down 18%.
For the December quarter, Oberoi Realty's net profit halved from last year, while revenue declined by 35%. EBITDA margin fell nearly 900 basis points to 48.3% from 57.7% last year.
The Mumbai-based Real Estate Developer also highlighted that it had received pre-sales of ₹882 crore from the launch of the new Elysian Towers in Mumbai's Goregaon suburb in January.
According to brokerage firm Ambit, average selling price declined sequentially amid higher share of lower value tranches. It also mentioned that the company's sales were below estimates.
Morgan Stanley also remains underweight on Oberoi Realty with a price target of ₹1,180. It said that the pre-sales figures could result in the stock underperforming peers but added that pre-sales are picking up in the March quarter, with net debt to equity improving to 0.15x.
Out of the 25 analysts that track Oberoi Realty, 11 continue to have a "buy" rating on the stock, while six of them have a "sell" recommendation.
Shares of Oberoi Realty are down 8.4% at ₹1,378.15.
(Edited by : Hormaz Fatakia)
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