Operating profit margin has declined from 42.72% to 38.35%, leading to 4.81% rise in operating profit to Rs 368.70 crore.  Employee cost decreased from 2.27% to 0.45%.   Other expenses rose from 60.58% to 90.93%.   Other direct service cost rose from 56.39% to 89.63%.  Other income rose 72.90% to Rs 33.68 crore.  PBIDT rose 8.39% to Rs 402.38 crore.  Provision for interest rose 96.36% to Rs 62.05 crore. PBDT rose 0.20% to Rs 340.33 crore.  Provision for depreciation rose 0.72% to Rs 9.74 crore.  Profit before tax grew 0.18% to Rs 330.59 crore.  Share of profit/loss was 7,411.25% higher at Rs 60.09 crore.  Provision for tax was credit of Rs 89.61 crore, compared to debit of Rs 98.43 crore.  Effective tax rate was negative 22.94% compared to 29.76%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 106.71% to Rs 480.29 crore.  

• Sales of Real Estate segment has gone up 14.32% to Rs 915.32 crore (accounting for 95.20% of total sales).  Sales of Hospitality segment has gone up 102.06% to Rs 46.11 crore (accounting for 4.80% of total sales).  
• Profit before interest, tax and other unallocable items (PBIT) has jumped 4.51% to Rs 376.84 crore.  PBIT of Real Estate segment rose 0.29% to Rs 357.15 crore (accounting for 94.77% of total PBIT).  PBIT of Hospitality segment rose 341.48% to Rs 19.69 crore (accounting for 5.23% of total PBIT).  
• PBIT margin of Real Estate segment fell from 44.48% to 39.02%.  PBIT margin of Hospitality segment rose from 19.54% to 42.70%.  Overall PBIT margin fell from 43.79% to 39.20%.  

Net sales (including other operating income) of Oberoi Realty has increased 55.63% to Rs 4192.58 crore.  Sales of Real Estate segment has gone up 53.92% to Rs 4,035.70 crore (accounting for 96.26% of total sales).  Sales of Hospitality segment has gone up 118.04% to Rs 156.88 crore (accounting for 3.74% of total sales).  

Profit before interest, tax and other unallocable items (PBIT) has jumped 79.78% to Rs 2,094.92 crore.  PBIT of Real Estate segment rose 76.01% to Rs 2,038.30 crore (accounting for 97.30% of total PBIT).  PBIT of Hospitality segment rose 685.30% to Rs 56.62 crore (accounting for 2.70% of total PBIT).  

PBIT margin of Real Estate segment rose from 44.17% to 50.51%.  PBIT margin of Hospitality segment rose from 10.02% to 36.09%.  Overall PBIT margin rose from 43.26% to 49.97%.  

Operating profit margin has jumped from 43.85% to 50.37%, leading to 78.75% rise in operating profit to Rs 2,111.65 crore.  Employee cost decreased from 2.23% to 1.01%.   Other expenses rose from 59.26% to 71.56%.   Other direct service cost rose from 56.03% to 69.79%.   

Other income rose 72.15% to Rs 100.62 crore.  PBIDT rose 78.44% to Rs 2212.27 crore.  Provision for interest rose 96.50% to Rs 169.05 crore.   PBDT rose 77.09% to Rs 2043.22 crore.  Provision for depreciation fell 0.08% to Rs 39.75 crore.   Profit before tax grew 79.85% to Rs 2,003.47 crore.  Share of profit/loss was 8.01% lower at Rs 220.41 crore.  Provision for tax was expense of Rs 319.34 crore, compared to Rs 306.48 crore.  Effective tax rate was 14.36% compared to 22.64%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 81.89% to Rs 1,904.54 crore.  

Management Comments :

Commenting on the Q4FY23 results,  Vikas Oberoi, CMD, Oberoi Realty, said, “India’s influence as a major world power has been growing owing to its strong macro-economic fundamentals and rising status as the world’s fifth largest economy and with the country assuming G20 Presidency from December 2022. Despite global headwinds, the domestic tailwinds have given a huge boost to the residential sector. Demand for housing has continued to grow, driven by the aspiration of continued home ownership by end users. Industry consolidation has led to incremental market share gains for organised players. The retail segment is experiencing phenomenal footfalls and strong growth across consumption. We expect a sustained interest in Grade-A offices as occupiers and employees focus on the quality of space that they occupy. In the coming year, we look forward to the launch of new projects and entry into new markets, leading to enhanced value for our stakeholders.” 

Other developments

Equity capital stood at Rs 363.60 crore as of 31 March 2023 to Rs 363.60 crore as of 31 March 2022.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 67.70% as of 31 March 2023 ,compared to 67.70% as of 31 March 2022 .  

 Loan funds rose to Rs 3,944.09 crore as of 31 March 2023 from Rs 2,855.47 crore as of 31 March 2022.  Inventories rose to Rs 8,543.09 crore as of 31 March 2023 from Rs 5,036.08 crore as of 31 March 2022.  Sundry debtors were higher at Rs 1,098.31 crore as of 31 March 2023 compared to Rs 124.58 crore as of 31 March 2022.  Cash and bank balance rose to Rs 512.92 crore as of 31 March 2023 from Rs 293.15 crore as of 31 March 2022.  Investments declined from Rs 2,679.39 crore as of 31 March 2022 to Rs 702.65 crore as of 31 March 2023.  Fixed assets increased to Rs 4,977.89 crore as of 31 March 2023 from Rs 4,274.66 crore as of 31 March 2022.  Intangible assets declined from Rs 2.51 crore to Rs 2.11 crore.  

Cash flow from operating activities has turned negative Rs 2,383.04 crore for year ended March 2023 from positive Rs 1,068.73 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 601.82 crore, compared to Rs 1,206.33 crore during the year ended March 2022.