Oberoi Realty soars high & attains 7% record growth worth Rs.1, 629.15 revenue

Oberoi Realty's shares surged by 7% to reach a new all-time high of Rs.1,629.15 each during trading on Wednesday, May 15th. This increase came after the real estate company reported strong earnings for the fourth quarter of fiscal year 2024 (Q4FY24).

The Mumbai-headquartered developer recorded a 64% year-on-year rise in its net profit to Rs.788 crore from Rs.480.3 crore in the corresponding quarter of the previous fiscal year. Additionally, its total income for the quarter in question increased by 56% year-on-year to Rs.1,558 crore. In terms of operations, Oberoi Realty's EBIDTA more than doubled year-on-year to Rs.788.6 crore in Q4FY24, up from Rs.368.7 crore. 

During the entire financial year of 2023-24, the real estate company disclosed a slight increase in net profit amounting to Rs.1,925 crore, as opposed to Rs.1,904 crore in the preceding fiscal year. Concurrently, the total income for FY24 surged by 12 percent year-on-year to Rs.4,818 crore from Rs.4,293 crore in FY23.

The CMD, of Oberoi Realty Vikas Oberoi opined, “The residential sector continues to witness significant sales traction driven by end-user demand and a rising desire for homeownership. In the last quarter, we launched Elysian Tower-C at our flagship integrated development Oberoi Garden City and we also delivered over 1,100 homes to residents at Sky City in Borivali. We recorded the highest ever quarterly and annual profits driven by robust sales momentum and healthy operational performance."

The board of directors at Oberoi Realty sanctioned resolutions on Tuesday to secure funds amounting to Rs.4,000 crore by issuing non-convertible debentures (NCDs) and conducting a qualified institutional placement (QIP) of equity shares. The strategy involves the issuance of NCDs worth up to Rs.2,000 crore through private placement, with the rest of the funds being raised through the QIP route, enabling the company to obtain capital in various stages.

Following the rally today, the stock has surged by more than 84% from its 52-week low of Rs.883.60, which was recorded on May 19, 2023. Over the past year, it has seen a significant increase of over 55%, and in the year 2024 so far, it has risen by 13%. The stock has shown a consistent upward trend, with a nearly 7%increase in May, marking the 4th consecutive month of gains. In April, it saw a modest half a percent rise, followed by around 10% in March and 1.4% in February. However, it experienced a decline of over 8%in January of this year.