OBEROI REALTY 2022-23 Annual Report Analysis

Thu, 8 Jun

OBEROI REALTY has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

OBEROI REALTY Income Statement Analysis

• Operating income during the year rose 55.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 64.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 55.6% in FY23 as against 52.7% in FY22.
• Depreciation charges decreased by 0.1% and finance costs increased by 96.5% YoY, respectively.
• Other income grew by 72.1% YoY.
• Net profit for the year grew by 81.9% YoY.
• Net profit margins during the year grew from 38.9% in FY22 to 45.4% in FY23.

OBEROI REALTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,940	41,926	55.6%
Other income	Rs m	585	1,006	72.1%
Total Revenues	Rs m	27,524	42,932	56.0%
Gross profit	Rs m	14,209	23,321	64.1%
Depreciation	Rs m	398	398	-0.1%
Interest	Rs m	860	1,691	96.5%
Profit before tax	Rs m	13,536	22,239	64.3%
Tax	Rs m	3,065	3,193	4.2%
Profit after tax	Rs m	10,471	19,045	81.9%
Gross profit margin	%	52.7	55.6
Effective tax rate	%	22.6	14.4
Net profit margin	%	38.9	45.4

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OBEROI REALTY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 33 billion as compared to Rs 28 billion in FY22, thereby witnessing an increase of 15.6%.
• Long-term debt stood at Rs 29 billion as compared to Rs 22 billion during FY22, a growth of 33.1%.
• Current assets rose 40% and stood at Rs 125 billion, while fixed assets fell 12% and stood at Rs 60 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 184 billion as against Rs 157 billion during FY22, thereby witnessing a growth of 18%.

OBEROI REALTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	104,161	122,101	17.2
Current Liabilities	Rs m	28,440	32,878	15.6
Long-term Debt	Rs m	21,650	28,806	33.1
Total Liabilities	Rs m	156,633	184,326	17.7
Current assets	Rs m	89,091	124,564	39.8
Fixed Assets	Rs m	67,542	59,762	-11.5
Total Assets	Rs m	156,633	184,326	17.7

OBEROI REALTY Cash Flow Statement Analysis

• OBEROI REALTY's cash flow from operating activities (CFO) during FY23 stood at Rs -24 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -5 billion from the Rs 8 billion net cash flows seen during FY22.

OBEROI REALTY Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	10,687	-23,830	-
Cash Flow from Investing Activities	Rs m	-13,900	11,357	-
Cash Flow from Financing Activities	Rs m	11,422	7,088	-37.9%
Net Cash Flow	Rs m	8,210	-5,385	-

Current Valuations for OBEROI REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.4, an improvement from the EPS of Rs 28.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 975.8, stands at 21.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	74.1	115.3
TTM Earnings per share	Rs	28.8	52.4
Diluted earnings per share	Rs	28.8	52.4
Price to Cash Flow	x	31.4	17.0
TTM P/E ratio	x	42.3	21.1
Price / Book Value ratio	x	2.7	2.7
Market Cap	Rs m	284,719	329,905
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for OBEROI REALTY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 3.1x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 14.2x during FY23, from 16.7x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 15.6% during FY23, from 10.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 15.9% during FY23, from 11.4% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.2% during FY23, from 7.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.1	3.8
Debtors’ Days	Days	169	956
Interest coverage	x	16.7	14.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.2	11.2
Return on equity	%	10.1	15.6
Return on capital employed	%	11.4	15.9

To see how OBEROI REALTY has performed over the last 5 years, please visit here.

OBEROI REALTY Share Price Performance

Over the last one year, OBEROI REALTY share price has moved up from Rs 780.8 to Rs 975.8, registering a gain of Rs 195.1 or around 25.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,033.0 (down 0.5%). Over the last one year it has moved up from 3,218.4 to 4,033.0, a gain of 815 points (up 25.3%).

Overall, the S&P BSE SENSEX is up 13.7% over the year.

(To know more, check out historical annual results for OBEROI REALTY and quarterly results for OBEROI REALTY)