Oberoi Realty faces 20 percent net profit decline in Q1 FY24

Oberoi Realty, a significant player in Mumbai's real estate sector, witnessed a 20.20 percent decline in its net consolidated profit, during the quarter ending June 30, 2023. As per the BSE filing, the company's profit after tax stood at Rs 321.64 crore in Q1 FY24, down from Rs 403.08 crore registered in the corresponding quarter of the previous fiscal. In the same period, Oberoi Realty's net consolidated total income recorded a marginal dip of 0.31 percent, amounting to Rs 933.56 crore compared to Rs 934.81 crore in the previous year. Meanwhile, the company witnessed a notable surge of nearly 10 percent in total expenses, primarily driven by increased operating costs.

Among its various segments, Oberoi Realty reported a decline of 7.41 percent in revenue from projects, its primary source of income, amounting to Rs 715.22 crore. On a positive note, the earnings from the hospitality segment experienced a commendable increase of 13.35 percent, reaching Rs 39.22 crore. In terms of financial health, as of June 30, 2023, Oberoi Realty's net worth stood at an impressive Rs 12,386.04 crore, showcasing its robust standing in the market. The debt-equity ratio was calculated at 0.30, indicating a balanced financial structure. Additionally, the current liability ratio and total debts to total assets ratio were reported at 0.49 and 0.20, respectively, further demonstrating the company's prudent financial management. Notably, the operating margin was a remarkable 52.06 percent, and the net profit margin stood at an enviable 34.45 percent.

In a strategic move to streamline operations and enhance value for stakeholders, the board of directors approved a revised scheme of amalgamation, incorporating Oberoi Constructions, Oberoi Mall, and Evenstar Hotels with Oberoi Realty. The proposed amalgamation aims to simplify the overall group structure and eliminate duplication, ensuring optimal utilization of existing resources while reducing costs. It reflects the company's commitment to efficiency and excellence.

With an impressive portfolio of 43 completed projects encompassing approximately 9.34 million square feet in Mumbai, Oberoi Realty has significantly contributed to shaping the city's urban landscape. Furthermore, the operation of the luxury hotel Westin Garden City adds to the company's reputation as a key player in the hospitality sector. In conclusion, Oberoi Realty continues to exemplify excellence, innovation, and customer-centricity in Mumbai's real estate arena. Its commitment to delivering superior projects and its strong financial standing underscore the company's significance and influence in the ever-evolving market.

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Oberoi Realty faces 20 percent net profit decline in Q1 FY24

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