Oberoi Realty sold 41,155 square feet for Rs 98.6 crore, down 18% q-o-q and up 81% y-o-y, marginally above estimates. Sales mix in favour of Exquisite over Esquire as project nears completion.
Collections for the quarter stood at Rs 187 crore, up 36% q-o-q and a flat y-o-y. Higher sequential collections despite lower sales booking was mainly due to increase in collections from Oasis, Worli, which stood at Rs 74.1 crore.
Operating cash flows remain negative at Rs 124 crore in the quarter as company continue to spend higher at Oasis, Worli. In Q2FY15, company spent Rs 124 crore at Oasis taking the total spend to Rs 1,050 crore. All guns blazing for Oberoi Realty ? a project nearing completion (easy to sell), four projects launches and a leasing transaction ? to boost growth.
Oberoi Realty continues to remain our preferred bet in the real estate space as there are multiple growth avenues, superior balance sheet, a strong brand equity to help capture any revival in real estate, well-located land bank, rentals higher than fixed costs and dominant presence in India?s financial capital. The only business issue was launches, which has got resolved. The company is well placed to benefit from any revival in the economy and sentiment, leading to higher sales booking trajectory and leasing activity.
Emkay
