Oberoi Realty shares sink 9% after Q3 net profit tanks 49%

Oberoi Realty shares fell 8.8 percent in early trade on January 23, after the Mumbai-based real estate developer recorded a 49 percent on-year decline in net profit for the quarter ended December 31, 2023.

The net profit came in at Rs 360 crore for the October–December period of FY24, down from Rs 702.57 crore a year ago, impacted by weak topline and operating numbers. Revenue from operations fell by 35.3 percent on-year to Rs 1,054 crore during the quarter.

As of 10.40am, shares of Oberoi Realty were trading at Rs 1,399.5 on the NSE, lower by 6.96 percent, compared to the closing price of the previous session.

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Morgan Stanley retained its ‘underweight’ call, with a target price of Rs 1,180 per share. The international brokerage noted that the pre-sales, revenue and margins came in below expectations for the quarter.

The company’s pre-sales grew 25 percent on-year but declined 18 percent on a sequential basis to Rs 7.9 billion in Q3FY24. This was 51 percent below Motilal Oswal’s estimate.

As a result of the lower-than-expected presales, Morgan Stanley said that Oberoi Realty could underperform its peers.

Over the past six months, shares of the company have risen around 31 percent. In comparison, the benchmark index Nifty 50 has gained around 9.5 percent during the same time period.

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