1. CMP 282.80
Target Price 320.00
ISIN: INE093I01010
JUNE 15th
2015
OBEROI REALTY LTD
Result Update (CONSOLIDATED BASIS): Q4 FY15
BUY
Index Details
Stock Data
Sector Realty
BSE Code 533273
Face Value 10.00
52wk. High / Low (Rs.) 334.00/203.05
Volume (2wk. Avg.) 16000
Market Cap (Rs. in mn.) 92824.29
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
Net Sales 9226.70 10518.44 11780.65
EBITDA 5312.70 6142.33 6891.64
Net Profit 3171.20 3657.70 4155.84
EPS 9.66 11.14 12.66
P/E 29.27 25.38 22.34
Shareholding Pattern (%)
1 Year Comparative Graph
OBEROI REALTY LTD S&P BSE SENSEX
SYNOPSIS
Oberoi Realty Limited engages in real estate and
hospitality businesses in India.
During the quarter, consolidated net profit stands at
Rs. 1030.20 mn against Rs. 770.30 mn in Q4 FY14, an
increase of 33.74%.
Consolidated revenue for the quarter increased by
56.28% to Rs. 3447.10 mn from Rs. 2205.70 mn,
when compared with the prior year period.
During the quarter, EBIDTA is Rs. 1831.60 mn as
against Rs. 1333.40 mn in the corresponding period
of the previous year, grew by 37.36%.
Consolidated PBT for Q4FY15 is Rs. 1725.10 mn as
against Rs. 1265.80 mn for Q4 FY14, a growth of
36.29%.
EPS of the company stood at Rs. 3.14 a share during
the quarter, as against Rs. 2.35 over previous year
period.
Oberoi Realty Ltd has recommended a dividend of
Rs. 2 per equity share for the financial year 2014-15.
Revenue for FY15 at Rs. 9401.6 mn as against Rs.
8555.1 mn and EBITDA at Rs. 5312.8 mn as against
Rs. 4918.4 mn; an EBITDA margin of 56.51% for
FY15 as against 57.49% for FY14.
Profit Before Tax for FY15 at Rs. 4892.2 mn as
against Rs. 4643.8 mn for FY14 and Profit After Tax
at Rs. 3171.2 mn as against Rs. 3110.6 mn for FY14.
Total area booked for FY15 was 10.34 Lakh sqft as
against 2.79 Lakh sqft booked in FY14 and the total
value was Rs. 17612.7 mn for FY15 as against Rs.
6617.6 mn for FY14.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
Oberoi Realty Ltd 282.80 92824.29 9.66 29.27 2.00 20.00
Omaxe Ltd 132.35 24206.90 3.28 40.35 1.22 5.00
Godrej Properties Ltd 245.90 49022.10 9.58 25.67 2.47 40.00
Prestige Estates Projects Ltd 256.00 96000.00 11.05 23.17 2.82 15.00

2. QUARTERLY HIGHLIGHTS (CONSOLIDATED BASIS)
Results Updates- Q4 FY15
Oberoi Realty Ltd engages in real estate and hospitality
businesses and it is involved in the investment,
development, sale, and lease of residential, office space,
retail, hospitality, and social infrastructure projects in India,
reported its financial results for the quarter ended 31st Mar,
2015.
The company’s net profit stands at Rs. 1030.20 million against Rs. 770.30 million in the corresponding quarter
ending of previous year, an increase of 33.74%. Revenue for the quarter increased by 56.28% to Rs. 3447.10
million from Rs. 2205.70 million, when compared with the prior year period. Reported earnings per share of the
company stood at Rs. 3.14 a share during the quarter, as against Rs. 2.35 over previous year period. Profit before
interest, depreciation and tax is Rs. 1831.60 million as against Rs. 1333.40 million in the corresponding period of
the previous year.
Break up of Expenditure
Months Mar-15 Mar-14 % Change
Net Sales 3447.10 2205.70 56.28
Ne Profit 1030.20 770.30 33.74
EPS 3.14 2.35 33.74
EBITDA 1831.60 1333.40 37.36
Break up of Expenditure
(Rs in millions)
Q4 FY15 Q4 FY14
%
CHNG
Operating cost
1389.50 757.50 83%
Employee Benefit Expenses 146.20 119.10 23%
Depreciation & Amortization
Expense
106.20 67.00 59%
Other Expenses
126.10 74.90 68%

3. Segment Revenue
Latest Updates
• Oberoi Realty Ltd has recommended a dividend of Rs. 2 per equity share (20% of face value of equity share)
for the financial year 2014-15.
Consolidated Financials for FY15
• Revenue for FY15 at Rs. 9401.6 mn as against Rs. 8555.1 mn and EBITDA at Rs. 5312.8 mn as against Rs.
4918.4 mn; an EBITDA margin of 56.51% for FY15 as against 57.49% for FY14.
• Profit Before Tax (PBT) for FY15 at Rs. 4892.2 mn as against Rs. 4643.8 mn for FY14 and Profit After Tax
(PAT) at Rs. 3171.2 mn as against Rs. 3110.6 mn for FY14.
• Total area booked for FY15 was 10.34 Lakh sqft as against 2.79 Lakh sqft booked in FY14 and the total value
was Rs. 17612.7 mn for FY15 as against Rs. 6617.6 mn for FY14.
COMPANY PROFILE
Oberoi Realty Ltd. is India’s leading real estate development company, headquartered in Mumbai, focused on
premium developments in the residential, office space, retail, hospitality and social infrastructure verticals.
Oberoi Realty has an established brand and a track record in the real estate industry of developing innovative
projects through its emphasis on contemporary architecture, strong project execution and quality construction.
Oberoi Realty seeks to create “destination developments” through its in mixed-use and single-segment
developments. It has a total of 35 completed projects across Mumbai, the commercial capital of India. Over the
past three decades the company has built growth and high-stature through consistent high-design and quality
parameters that have truly made a significant difference to ease, comfort and efficiency to lives that interact with
or inhabit these spaces.

4. FINANCIAL HIGHLIGHT (CONSOLIDATED BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March 31, 2014 -2017E
FY14A FY15A FY16E FY17E
SOURCES OF FUNDS
Shareholder's Funds
Share Capital 3282.33 3282.38 3282.38 3282.38
Reserves and Surplus 40681.58 43060.48 46718.20 50874.04
1. Sub Total - Net worth 43963.91 46342.86 50000.58 54156.42
Non Current Liabilities
Long term borrowings 750.00 7299.16 7737.11 8123.97
Deferred Tax Liabilities 219.50 242.48 261.88 274.97
Trade payables 108.81 10.11 11.63 12.67
Other Long term Liabilities 766.62 782.44 821.56 854.42
Long term Provisions 10.48 11.91 12.98 14.02
2. Sub Total - Non Current Liabilities 1855.41 8346.10 8845.16 9280.06
Current Liabilities
Short term borrowings 10.62 1081.42 1167.93 1238.01
Trade Payables 242.80 407.59 448.35 488.70
Other Current Liabilities 8019.37 14192.73 16463.57 18439.19
Short Term Provisions 778.21 828.89 878.62 922.55
3. Sub Total - Current Liabilities 9051.00 16510.63 18958.47 21088.46
Total Liabilities (1+2+3) 54870.32 71199.59 77804.22 84524.94
APPLICATION OF FUNDS
Non-Current Assets
Fixed Assets
Tangible assets 6636.99 10132.77 12159.32 13740.04
Intangible assets 20.84 14.93 16.72 18.06
Capital Work in Progress 4337.04 217.73 243.86 268.24
a) Sub Total -Fixed Assets 10994.87 10365.43 12419.90 14026.34
b) Goodwill on consolidation 2653.83 2653.83 2866.14 3038.10
c) Non-current investments 0.11 0.12 0.13 0.14
d) Long Term loans and advances 12416.64 12520.56 13146.59 13672.45
1. Sub Total - Non Current Assets 26065.45 25539.94 28432.76 30737.04
Current Assets
Current investments 496.27 0.00 0.00 0.00
Inventories 16491.26 34817.47 37218.10 40386.52
Trade receivables 861.96 828.14 877.83 930.50
Cash and Bank Balances 4997.41 2936.85 3348.01 3749.77
Short-terms loans & advances 5904.14 7041.26 7886.21 8674.83
Other current assets 53.83 35.93 41.32 46.28
2. Sub Total - Current Assets 28804.87 45659.65 49371.46 53787.90
Total Assets (1+2) 54870.32 71199.59 77804.22 84524.94

5. Annual Profit & Loss Statement for the period of 2014 to 2017E
Value(Rs.in.mn) FY14A FY15A FY16E FY17E
Description 12m 12m 12m 12m
Net Sales 7984.50 9226.70 10518.44 11780.65
Other Income 570.60 174.90 188.89 200.23
Total Income 8555.10 9401.60 10707.33 11980.88
Expenditure -3636.70 -4088.90 -4565.00 -5089.24
Operating Profit 4918.40 5312.70 6142.33 6891.64
Interest -3.10 -17.60 -20.42 -23.27
Gross profit 4915.30 5295.10 6121.91 6868.36
Depreciation -271.50 -402.90 -463.34 -523.57
Profit Before Tax 4643.80 4892.20 5658.58 6344.79
Tax -1533.20 -1721.00 -2000.87 -2188.95
Net Profit 3110.60 3171.20 3657.70 4155.84
Equity capital 3282.33 3282.33 3282.33 3282.33
Reserves 40681.60 43060.50 46718.20 50874.04
Face value 10.00 10.00 10.00 10.00
EPS 9.48 9.66 11.14 12.66
Quarterly Profit & Loss Statement for the period of 30th Sep, 2014 to 30th June, 2015E
Value(Rs.in.mn) 30-Sep-14 30-Dec-14 31-Mar-15 30-Jun-15E
Description 3m 3m 3m 3m
Net sales 1855.20 2170.60 3447.10 2826.62
Other income 38.50 25.40 46.30 49.08
Total Income 1893.70 2196.00 3493.40 2875.70
Expenditure -737.20 -905.10 -1661.80 -1243.71
Operating profit 1156.50 1290.90 1831.60 1631.99
Interest -16.40 -0.50 -0.30 -1.50
Gross profit 1140.10 1290.40 1831.30 1630.49
Depreciation -98.80 -98.50 -106.20 -120.01
Profit Before Tax 1041.30 1191.90 1725.10 1510.48
Tax -335.90 -399.60 -694.90 -534.11
Net Profit 705.40 792.30 1030.20 976.37
Equity capital 3282.33 3282.33 3282.33 3282.33
Face value 10.00 10.00 10.00 10.00
EPS 2.15 2.41 3.14 2.97

6. Ratio Analysis
Particulars FY14A FY15A FY16E FY17E
EPS (Rs.) 9.48 9.66 11.14 12.66
EBITDA Margin (%) 61.60% 57.58% 58.40% 58.50%
PBT Margin (%) 58.16% 53.02% 53.80% 53.86%
PAT Margin (%) 38.96% 34.37% 34.77% 35.28%
P/E Ratio (x) 29.84 29.27 25.38 22.34
ROE (%) 7.08% 6.84% 7.32% 7.67%
ROCE (%) 11.60% 10.44% 11.21% 11.67%
Debt Equity Ratio 0.02 0.18 0.18 0.17
EV/EBITDA (x) 17.91 18.50 16.02 14.28
Book Value (Rs.) 133.94 141.19 152.33 164.99
P/BV 2.11 2.00 1.86 1.71
Charts

7. OUTLOOK AND CONCLUSION
At the current market price of Rs. 282.80 the stock P/E ratio is at 25.38 x FY16E and 22.34 x FY17E
respectively.
Earnings per share (EPS) of the company for the earnings for FY16E and FY17E are seen at Rs. 11.14 and Rs.
12.66 respectively.
On the basis of EV/EBITDA, the stock trades at 16.02 x for FY16E and 14.28 x for FY17E.
Price to Book Value of the stock is expected to be at 1.86 x and 1.71 x for FY16E and FY17E respectively.
We recommend ‘BUY’ in this particular scrip with a target price of Rs. 320.00 for Medium to Long term
investment.
INDUSTRY OVERVIEW
The Indian real estate sector has witnessed high growth in recent times with the rise in demand for office as well
as residential spaces.
According to data released by Department of Industrial Policy and Promotion (DIPP), the construction
development sector in India has received foreign direct investment (FDI) equity inflows to the tune of US$
24,012.87 million in the period April 2000-December 2014.
The government has taken several initiatives to encourage the development in the sector, the key ones being:
• Relaxation in the norms to allow foreign direct investment (FDI) in the construction development sector.
This move is expected to boost affordable housing projects and smart cities across the country.
• The Government of Maharashtra has announced a series of measures to bring transparency and increase the
ease of doing business in the real estate sector.
• Clearance of model real estate bill by the Union Cabinet.
• The Securities and Exchange Board of India (SEBI) has notified final regulations that will govern real estate
investment trusts (REITs) and infrastructure investment trusts (InvITs). This move will enable easier access
to funds for developers and create a new investment avenue for institutions and high net worth individuals,
and eventually ordinary investors. Tax efficiency can be critical to the success of REITs. While the basic
framework for one-level taxation has been laid down by the Finance (No. 2) Act, 2014 and supplemented by
the Finance Bill, 2015, certain challenges persist in structuring a REIT.

8. Real estate contributed about 6.3% to India’s gross domestic product (GDP) in 2013. The market size of the
sector is expected to increase at a compound annual growth rate (CAGR) of 11.2% during FY 2008-2020 to touch
US$ 180 billion by 2020.
Mumbai Real Estate
The property prices remained elevated in Mumbai largely because developers were hit hard by the increased
cost of construction and debt. The developers had no option to hold on to selling prices to cover up augmented
prices of land parcel, high input cost and increased cost of funding. The rising stock in office space due to
subdued and uncertain economic environment further dampened the real estate players. The retail space grew at
a snail’s pace in Mumbai and the rentals showed limited signs of increase due to ongoing slowdown in both
organised retail and real estate sector.
Opportunities
As India awaits policy reforms to pick up speed, Oberoi Realty firmly believes that the demand for Real Estate in
a country like India should remain strong in the medium to long term. The Company’s well-accepted brand,
contemporary architecture, well-designed projects in strategic locations, strong balance sheet, and stable
financial performance even in testing times make it a preferred choice for customers and shareholders. Oberoi
Realty is ideally placed to further strengthen its development potential by acquiring new land parcels.
Outlook
FY2016 outlook would be governed by the implementation of REIT Regulations, the proposed New Real Estate
Bill and the New Development Plan for Mumbai. We expect FY2016 to be the start of growth year for the Indian
economy as a whole in view of various measures being taken by the new government to boost manufacturing and
infrastructure development in the country. Economists expect India’s GDP growth in the range of 7.0-8.0% for
FY2016. Oberoi Realty will target to ensure steady operations and deliver high quality projects for its customers.
Disclaimer:
This document is prepared by our research analysts and it does not constitute an offer or solicitation for the
purchase or sale of any financial instrument or as an official confirmation of any transaction. The information
contained herein is from publicly available data or other sources believed to be reliable but we do not represent that
it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be
in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. Firstcall Research and/ or its affiliates and/or employees will not be liable for
the recipients’ investment decision based on this document.

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