Oberoi Realty shares fall as net profit drops 45 pc in Q4

New Delhi, April 29 Mumbai-based real estate firm Oberoi Realty saw its share price decline by Rs 46.80 or 2.82 per cent to Rs 1,610 on the National Stock Exchange (NSE) on Tuesday.

The fall came after the company reported a 45 per cent drop in its consolidated net profit for the fourth quarter (Q4) of FY25.

According to its filing with the Bombay Stock Exchange (BSE), Oberoi Realty’s net profit for the January-March quarter stood at Rs 433.17 crore, compared to Rs 788.03 crore in the same period last fiscal.

The sharp fall in profit was mainly due to a steep rise in land acquisition costs and a drop in operational revenue.

Oberoi Realty’s land acquisition costs jumped by 207 per cent, reaching Rs 587 crore in the March quarter of FY25, compared to Rs 191 crore a year ago.

This significant rise in costs affected the company’s bottom line despite a strong market presence.

The company’s revenue from its core operations fell 12.5 per cent to Rs 1,150.14 crore in Q4, down from Rs 1,314.77 crore in the same quarter of the previous fiscal.

At the operating level, Oberoi Realty’s EBITDA (earnings before interest, tax, depreciation, and amortisation) declined by 21.7 per cent year-on-year (YoY) to Rs 617.8 crore in the fourth quarter of FY25, down from Rs 788.9 crore in the same period last fiscal.

The company’s EBITDA margin also slipped to 53.7 per cent during the reporting quarter, compared to 60 per cent in the corresponding quarter of the previous fiscal.

Alongside its quarterly results, the company also declared its fourth interim dividend for the financial year 2024-25.

Oberoi Realty announced a dividend of Rs 2 per equity share for all eligible shareholders. The company has fixed May 5, as the record date for this dividend payout.

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