Oberoi Realty drops 8% despite posting strong Q3 show; here's why

Oberoi Realty shares slipped 7.6 per cent in trade on Tuesday (January 21, 2025), logging an intraday low at Rs 1,848. per cent. The stock fell in a weak market and after the company posted Q3FY25 numbers which were below D-Street's expectation.

 

Around 10:44 AM, MCX share price was down 6.94 per cent at Rs 1,862.65 per share on BSE. In comparison, the BSE Sensex was down 0.86 per cent at 76,414.12. The market capitalisation of the company stood at Rs 67,902.72 crore. The 52-week high of the stock was at Rs 2,349.8 per share and the 52-week low was at Rs 1,268 per share. 

 

Mumbai-based premium real estate developer Oberoi Realty on Monday, January 20, 2025, reported its Q3 report after market hours. The company posted a 71.70 per cent year-on-year (Y-o-Y) increase in net profit for the third quarter of FY25 (Q3 FY25), reaching Rs 618.38 crore, compared to Rs 360.15 crore in Q3 FY24. However, it was lower than Bloomberg consensus of Rs 725.63 crore

 

Its revenue from operations for the quarter stood at Rs 1,411.08 crore, marking a 34 per cent Y-o-Y growth, though it fell short of the Bloomberg consensus of Rs 1,601.0 crore.

 

The company’s total expenses rose by 7.80 per cent Y-o-Y to Rs 652.71 crore, driven by higher costs related to land, development rights, construction, and other expenses. 

 

For the nine months ending December 2024 (9M FY25), Oberoi Realty posted a 30.03 per cent Y-o-Y increase in revenue at Rs 4,136.13 crore, while net profit surged 57.42 per cent Y-o-Y to Rs 1,792.34 crore.

 

The company also declared its third interim dividend for FY25 at Rs 2 per equity share, representing 20 per cent of the face value of equity shares of Rs 10 each.

 

In October 2024, Oberoi Realty’s board of directors approved plans to raise up to Rs 6,000 crore in one or more tranches. The same month, it launched Oberoi Garden City, a luxury residential project in Thane. The 75-acre development achieved a gross booking value of Rs 1,348 crore for 5.65 lakh square feet of carpet area within the first three days of its launch.

 

In the past one year, Oberoi Realty shares have gained 46 per cent against Sensex's rise of 9.5 per cent.