Oberoi Realty extends gain post Q2 results

The stock rallied 5% to Rs 230, extending in past two day's 5% gain, on reporting 30% yoy growth in operating profit.

Oberoi realty has rallied 5% to Rs 230, extending its past two day’s 5% gain on BSE, after reporting 10% year-on-year (yoy) increase in consolidated net profit at Rs 70.54 crore for the second quarter ended September, 2014 (Q2), on lower expenses. The Mumbai-based real estate developer had profit of Rs 64.14 crore in the same quarter last fiscal.

Net sales in Q2, 2014-15 declined to Rs 184 crore as against Rs 186 crore in the year-ago period, Oberoi Realty said in a filing to the BSE.

Operating profit increased by 30% to Rs 112 crore on yoy basis, while margins improved to 60% from 45.54%.

Oberoi Realty Chairman & Managing Director Vikas Oberoi said, "Within this financial year, we at Oberoi Realty are gearing up to launch 2 large scale projects in Mumbai - Mulund & Borivali. We believe that our focus on creating great quality products will be reflected by the continued customer confidence in our company."

These new launches shall provide much needed visibility on pre-sales and launch success remain key re-rating trigger, says analyst.

The stock opened at Rs 220 and touched a high of Rs 231 on BSE. A combined 264,682 shares changed hands on the counter so far on BSE and NSE.