oberoi realty initiation report

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Initiating coverage

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3rd March 2011

MARKET DATA Rs. CMP 231.30 EPS 14.10 P/E 16.40 Book Value per share 57.40 52 Week High 306.60 52 Week Low 210.00

Equity Capital (Rs mn) 3641.70 Mkt. Cap (Rs mn) 84,232.52 Free Float (Rs mn) 8,420.00

CODES

BSE 533273

Bloomberg OBEROI IN

NSE OBEROIRLTY

Price-Volume Graph

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Source: BSE

Performance Overview (Rs mn)

Date End Net Sales EBIDTA Net Profit* EBITDAM NPM* EPS

FY 2009 4254 2474 2515 58.2% 59.1% 7.7

FY 2010 7836 4672 4574 59.6% 58.4% 14.1

FY 2011 (E) 10605 6298 5554 59.4% 52.4% 15.3

FY 2012 (E) 13775 8077 7081 58.6% 51.4% 19.4

Source: Company data, Wallfort Research

*adjustment of non-exceptional items

Company Overview

Oberoi Realty Limited (Oberoi) is a real estate player operating in Mumbai with the focus onpremium development projects. It is primarily engaged in the development of residential,office space, hospitality, retail and social-infrastructure projects. It has a vast experience with strong execution capabilities and reputed brand name in Mumbai sub-urban market. It also develops land owned by a third party on a revenue-share basis. Investment Thesis

Oberoi is a debt-free company operating in the lucrative Mumbai region and well positioned to take advantage of declining land prices by adding to its land bank. In addition, we believe it would be flexible on pricing in case the market witnesses any slowdown in volumes in the current environment.

It currently rented few properties, Oberoi Mall (0.55mnsqft), Commerz-1 (0.38msf of commercial space) and Westin Hotel (0.36msf), which contribute approximatelyRs1100mn (10% of total FY2010 revenues). Moreover, it expects to leaseapproximately 5.34mnsqft by the end of 2013, which is likely to give amplecushion to the company on cash inflow upfront, going forward.

No leverage and positive operating cash flow gives a competitive edge to thecompany over its competitors for working capital requirement and further for the acquisition of land for high value projects. In addition, it is consistently reporting superior margins and profitability ratios over the past three years.

Strong business insight in the past especially in relation to land acquisition at theright location and at low cost coupled with timely execution and delivery of projects highlights management’s extensive experience and understanding of business &economic dynamics.

We expect the company to showcase robust top-line growth. Revenues are likely togrow at a CAGR of 21% over FY2010-FY2012E while EBITDA income is expected to increase at a CAGR of 20% over the same period.

Outlook & Valuation

The company is currently trading at a discount to its Net Asset Value (NAV). We initiate the coverage on the stock with a ‘BUY’ recommendation for a twelve months investmenthorizon with the target price of Rs299.0, an upside of 29.0%, offering attractive investmentopportunity at current level.

Analyst: Umesh Patel (022-66184011) [email protected]

Sector: Real Estate Recommendation: BUY

CMP: Rs. 231.30 Target: Rs.299.0

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Fig: Shareholding Pattern (Dec 10) Fig: Relative Performance

Promoter79%

DII1%

FII9%

Others11%

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Perc

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Sensex Oberoi

Source: BSE, Wallfort Research

BusinessSegments

Residential Office Space Retail Hospitality Social Infra.

Sale Sale/Lease Owned LeaseSale/Lease

Oberoi’s key projects in Mumbai are Oberoi Garden City (11.2mnsf) in Goregaon, Oberoi Splendor (3.1mnsf) in Andheri, Oasis (2.1mnsf) in Worli and Oberoi Exotica (3.2mnsf) in Mulund. It has 93% of its landbank in Mumbai while remaining 7% are in pune.

It works with various reputed international architects and domestic architects

and contractors.

It plans to expand its footprint in other cities like Pune, Delhi, Banglore. It currently holds 31.7% interest in Pune project to develop Sangam City Township Pvt. Ltd, a SPV, to develop 56 acres of land.

Business Description

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Fig: Segment-wise Ongoing projects (%) Fig: Segment-wise Planned projects (%)

57%

3%2%1%

37%

Residential Retail Commercial Hospitality Social Infra

64%4%

2%

13%

17%

Residential Retail Commercial Hospitality Social Infra


Particulars (Rs mn) FY2007 FY2008 FY2009 FY2010 CAGR

Revenues 2352 5112 4254 7836 49%

y-o-y growth 191% 117% (17%) 84%

EBITDA 1218 2575 2474 4672 57%

margin 52% 50% 58% 60%

PAT 792 2952 2523 4576 79%

margin 34% 58% 59% 58%

Diluted EPS 3.0 10.2 8.7 15.9 74%

ROE 26% 28% 19% 28%

ROCE 17% 23% 20% 28%


Low cost land bank with higher realisation Historically, it has purchased land by making upfront payment at prime locations at cheaper rates, which provides it flexibility and operational advantage in mumbai. In addition, it has significant footprint with a land bank at Goregaon, Andheri and Mulund areas, where the development activity is visible. Moreover, it is witnessing large and positive enquiries for their projects in areas like Goregaon & Andheri and enjoying higher prices for its most of the projects (8-10% higher) than other developers due to strong brand name and quality work.

Revenue increased at a CAGR of 49% during FY2007 to FY 2010 Healthy EBITDA and Net profit margins

Historical Financial highlights

Investment Rationale

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Fig: Location-wise Landbank portfolio (%) Fig: Segment-wise Landbank portfolio (%)

17%

46%

18%

12%

7%

Andheri Goregaon Mulund Worli Juhu

63%

17%

1%

8%

11%

Residential Commercial Retail

Hospitality Social Infra

Source: Company data, Wallfort Research Strong pipeline of projects showcasing revenue visibility Most of its projects are in sub-urban Mumbai area which are in completion stage and witnessed strong enquiries. Recently, it has completed and launched few projects. Furthermore, keeping aside its ongoing and operational projects, it has lined up with few more projects, which are likely to be completed by 2015, giving revenue visibility for atleast 4-5 years.

Area Type of Completion

Planned Projects mn sqft Project Date

Oberoi Exotica- I & II, Mulund-West 3.20 Residential CY2014

Sangam City- Pune 0.77 Residential Dec-15

Oberoi Splender - IT Tower, Andheri-E 0.09 Commercial November-12

Sangam City - Comm,Pune 0.28 Commercial December-15

Sangam City, Pune 0.28 Retail December-15

Juhu Hotel, Juhu 1.29 Hospitality N/A

Oberoi Garden City, Goregaon- E 0.38 Social Infra N/A

Oberoi Garden City, Goregaon- E 0.50 Social Infra N/A

Oberoi Splender School, Andheri- E 0.43 Social Infra N/A

Source: Company data, Wallfort Research Mumbai Play- Lucrative for Oberoi Realty Mumbai is one of the most lucrative destinations for property investments with commercial, residential, and retail realty making rapid strides. It has a huge potential for it to grow being the entertainment and financial core of the country. Furthermore, it is also benefiting from an increasing trend of urbanization, rapid industrial growth, resulting into migration of peoples and thus in turn creating a demand for residential units.

Revenue visibility for the next 3-4 years Mumbai- Safe bet to play

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With home prices touching the roof, buyers seem to have started withdrawing from the market, indicated by a decline in home loan growth with various lenders. Sales are down in Mumbai and in the suburbs and developers have repayments to make. Hence, price cut looks largely evident which would attract fresh demand at lower price. Inspite of the interest rate hikes, anticipation of cooling down of property prices, lower absorption and decline in liquidity in recent few months, the company has witnessed robust queries and demand for its projects. We believe the company is well placed in below mentioned areas where significant residential activities have taken place since past few years. Details of ongoing and planned projects location-wise as well as segment-wise:

Particulars Residential Office space Retail Hospitality Social Infra Total ongoing planned ongoing planned ongoing planned ongoing planned ongoing planned Sqft (mn)

Andheri 1.6 1.0 0.1 0.4 3.1

kurla 0.0

Goregoan 2.7 2.5 1.7 0.3 1.2 8.5 Mulund 3.2 3.2

worli 1.5 0.2 0.1 0.2 2.1

Juhu 1.3 1.3

Total Sqft (in mn) 5.8 5.7 3.0 0.1 0.0 0.1 0.2 1.3 0.3 1.7 18.2

Balanced Revenue streams- Rental income to give cushion Going forward, the rental revenues would grow substantially due to higher contributions from commercials, Retail and hospitality businesses. Income from properties and rent are expected to grow from Rs834mn in FY2010 to Rs1135mn in FY2012E and Rs1867mn by FY2013E. This would further de-risk its business model as the company would not be solely dependent on sales of residential properties for its revenues. It currently rented few properties, Oberoi Mall (0.55mnsqft), Commerz-1 (0.38mnsqft of commercial space) and Westin Hotel (0.36mnsqft), which contributes approximately Rs1100mn (10% of total FY2010 revenues). Moreover, it expects to lease approximately 5.34mn sqft by the end of 2013, which is likely to give ample cushion to the company on cash inflow upfront, going forward.

Area

Rental Income Portfolio mn sqft Occupancy 9M 2011

Commerz- I, Oberoi Garden City, Goregaon-E 0.36 77% 341

Oberoi Garden City, Oberoi Mall, Goregaon- E 0.53 92% 488

Oberoi Garden City - Westin Hotel ,Goregaon-E 0.38 60% 431

Oberoi Garden City, School, Goregaon- E 0.53 437 students n/a


Diversified business portfolio

Most of the projects are in sub-urban areas

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Fig: Company’s : Rental income Portfolio target till FY2015

0.4 0.4

2.8 2.80.6 0.6

0.6 0.6

0.3

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0.4 0.6

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Sep-10 FY2011 FY2013 FY2015

mn

sqft

Office space Retail Social Infra Hotel

Source: Wallfort Research

Unlevered balance-sheet & Superior margins Zero leverage and positive operating cash flow give a competitive edge to the company over its competitors for working capital requirement and further for the acquisition of land for high value projects. In addition, it is consistently reporting superior margins and profitability ratios over the past three years. Going forward, we expect company to continue to display decent ratios and margins, primarily due to zero debt level, which is likely to translate into strong bottom-line performance. Furthermore, the company plans to explore opportunities in other states like Delhi, Hyderabad, and Bangalore through JVs with the local landlords. However, at the same time, it also expects to buy land parcel if it gets it at the right price and time, depending upon the location and area.

Fig: Ratio trend (%) Fig: Operating Cash flow trend

17%17% 16%

25%

17%18%

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19%

0%

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FY2009 FY2010 FY2011E FY2012EROE ROCE

6438

1205

5237

3968

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7000

FY2009 FY2010 FY2011E FY2012E

Rs

mn


Oberoi’s target for rental income generation Debt free company with huge cash surplus

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Flagship Project: Oberoi Garden city to add significant value to NAV Oberoi Garden City, a flagship mixed development project spread across 75.2 acres of land with the saleable area of 11.2mnsqft in Goregaon, is likely to add significant value to the company in the near future. Currently, it is developing a township project wherein a residential block, retail mall, hotel and commercial space are already operational and planned. The details of the township project are as follows:

Oberoi Exquisite-I: The Company has constructed more than 20% at the end of Q3 FY2011 and sold almost 54%. It has commenced recognizing the revenues from this project.

Oberoi Townhouse (villas) – It has sold 1 unit during 9MFY2011 out of total 7

units available for sale.

Oberoi Mall: Current occupancy rate is 92%. It has generated rental income of Rs487.8mn during 9M FY2011.

Commerz- I, Oberoi garden city: Current occupancy rate is 77% and is in

advanced talk to further rent out 10% of the area by the end of FY2011. It has generated rental income of Rs340.6mn in 9M FY2011.

Oberoi- Westin Hotel: The Company has made an investment in hotel project

(269 rooms), which is operating with the occupancy rate of 60% with the Average Room Rate of Rs7800, contributed revenue of Rs430.7mn in 9M FY2011.

Area Completion

Project : Oberoi Garden City mn sqft Type Status date NAV (Rs mn)

Oberoi- Exquisite I(Goregaon-E) 1.37 Residential Ongoing Nov-13 7099

Oberoi- Exquisite II(Goregaon-E) 1.33 Residential Ongoing March-14 5794

Oberoi- Exquisite III(Goregaon-E) 2.50 Residential Planned June-15 10420

Oberoi Townhouse(villas)- Goregaon-E 0.03 Residential Completed N/A 173

Commerz- I, Oberoi Garden City, Goregaon-E 0.36 Commercial Completed N/A 4478

Commerz- II, Phase-I Oberoi Garden City, Goregaon-E 0.73 Commercial Ongoing Dec-11 4590

Commerz- II, Phase-II Oberoi Garden City, Goregaon-E 1.66 Commercial Ongoing Dec-12 7300

Oberoi Garden City, Oberoi Mall, Goregaon- E 0.53 Retail Completed N/A 6370

Oberoi Garden City - Westin Hotel ,Goregaon-E 0.38 Hotel Completed N/A 1297

Oberoi Garden City, School, Goregaon- E 0.53 Social Infra Completed N/A 2646

Source: Company data, Wallfort Research JV with Sahana Builders for Oasis Realty project at Prime location

Oberoi has entered into agreement with Sahana Builders for joint development of Oasis Realty project at Worli under which Oberoi would construct and develop mixed use project (Residential, Commercial, Retail, Hotel) of 2.1mn sqft.

The share of Oberoi would be 25-40% from residential, office space and retail

components and 36.25% for the hotel project which is expected to be completed till 2015.

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Management believes that the construction activities is likely to start according to the planned schedule and also initiated advanced talks with a leading international hotel chain and a leading international general contractor for this mixed-use luxury project.

Area Completion NAV

Oasis Realty mn sqft Type Status date (Rs mn)

Oasis- Residential, Worli 1.54 Residential Initial stage Dec-14 23224

Oasis- Commercial, Worli 0.24 Commercial Initial stage Dec-12 1176

Oasis Realty- Retail Mall, Worli 0.12 Retail Initial stage Dec-12 911

Oasis Hotel, Worli 0.22 Hotel Initial stage Dec-14 684

Source: Company data, Wallfort Research Oberoi Splender, Andheri (E)

The Company acquired land during 2005 at a very cheap rate, when the prices were very low. It is currently executing 4 projects, consisting 2 residential and 2 commercial buildings. The company has completed 86% work till dec-10 and sold nearly about 90% of the area of Oberoi - Splender I and also launched and sold 30% of total area of Oberoi - Splender II within the quarter.

We have not taken into consideration two planned projects in our valuation,

primarily due to lack of visibility to start construction activities by the company on it. The summery of the ongoing projects and our NAV calculation is as follows:

Type of Selling price Work completed Area NAV

Oberoi Splender Project Status per sqft till 31st Dec, 2010 Sold (Rs mn)

Oberoi- Splender I(Andheri-E) Residential Ongoing 16000.00 86% 90% 4093

Oberoi- Splender II(Andheri-E), Grande at JVLR Residential Ongoing 12000.00 Less than 20% 30% 1323

Oberoi Splender-Comm.I, Andheri-E Commercial Ongoing n/a Initial stage n/a 1192

Oberoi Splender Prisma-Comm.II, JVLR, Andheri-E Commercial Ongoing n/a Initial stage n/a 2780

Oberoi Splender - IT Tower, Andheri-E Commercial Planned n/a n/a n/a n/a

Oberoi Splender School, Andheri- E Social Infra Planned n/a n/a n/a n/a


Proven management record, strong brand name enabled company to monetize its projects on a timely manner Timely execution and delivering of projects coupled with company’s cautious approach in acquiring land during 2007-08 (when the prices were at the pick), has proven track record and quality of the management in decision making. Furthermore, it has well established and respected brand name for its quality work and premium residential projects in north Mumbai area which we believe gives competitive edge to the company to attract the customers.

Oasis Realty- Worli project is right on track

Quality management and technology upfront

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Peers Comparison

Particulars (Rs mn) (FY2010) Oberoi HDIL Orbit DLF

Revenues 7836 15021 4871 74209

y-o-y growth 84% (13%) 72% (26%)

EBITDA 4672 7893 1893 35012

margin 60% 53% 39% 47%

PAT 4574 5722 950 17300

margin 58% 38% 20% 23%

Diluted EPS 14.1 16.0 20.2 10.2

ROE 25% 10% 14% 7%

P/BV N/A 1.50 1.79 2.60

D/E 0.00 0.80 1.05 0.70


Q3FY2011: Result Highlights

Oberoi reported robust top-line growth by 90% y-o-y to Rs3,952mn in Q3 2011 against Rs2,075mn in Q3 2010.

During Q3 2011, EBIDTA increased by 85% y-o-y to Rs2,434mn. However,

margins declined by 100bps y-o-y to 62% during the quarter. Total operating expenses increased to 38%, as a percentage of sales, primarily due to increase in construction costs as against 37% in Q3 2010.

Adjusted net profit of Rs2,017mn in Q3 2011 against Rs1,272mn in Q3 2010

and margins suppressed by 1000bps to 51% mainly due to higher effective tax rate (22% in Q3 2011 against 5% Q3 2010) during the quarter.

Fig: Quarterly Performance Highlights (Rs mn)

Particulars Q3FY11 Q3FY10 Y-o-Y Q2FY11 Q-o-Q 9MFY11 9MFY10 Y-o-Y

Net Sales 3,952 2,075 90% 1,700 132% 7,250 6,174 17%

Total Expenditure 1,518 758 100% 694 119% 2,967 2,564 16%

(% of sales) 38% 37% N/A 41% N/A 41% 42% N/A EBIDTA 2,434 1,317 85% 1,005 142% 4,284 3,610 19%

EBIDTA Margin 62% 63% (100bps) 59% 300bps 59% 58% 100bps Adjusted net profit 2,017 1,272 59% 954 111% 3,767 3,486 8%

Net profit Margin 51% 61% (1000bps) 56% (500bps) 52% 56% (400bps)


Oberoi beat its peers in all aspects during FY2010

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Oberoi has been allowed by Supreme Court (SC) to start construction for its Mulund project (Exotica). However, SC asked Oberoi to take prior permission from Ministry of Environment & Forest (MoEF), which may take few more months for clearance and therefore, Oberoi expects to launch the project by Q1 2012.

There is still arbitration going on for the acquisition of Juhu Hotel (Tulip Star).

Management is trying to settle the things out of the court for this deal. We have not valued this project in our valuation.

Financial Projections We expect the company to showcase robust top-line growth. Revenues are likely to grow at a CAGR of 21% over FY2010-FY2012E. We anticipate the company to register revenues of Rs10,605mn and Rs13,775mn in FY2011E and FY2012E, respectively.

Revenue Driver Sheet Particulars FY 2009 FY2010 FY2011E FY2012E FY2013E

Residential

Area (mn sqft) 0.40 0.50 0.62 0.80 0.95

Revenues (Rs mn) 3517 7003 8857 11808 15920

Rental (Commercial+ Retail)

Area (mn sqft) 0.0 0.6 0.8 0.8 1.3

Revenues (Rs mn) 737 834 1122 1193 1925

Hotel

Revenues 453 476 576

Social Infra

Revenues 172 297 550

Total Revenues 4254 7837 10605 13775 18971

Y-o-Y Growth (17%) 84% 35% 30% 38%


Fig: Revenue projection trend

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Break-up of revenue drivers by segment wise Strong top-line growth to be supported by rental income growth

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Fig: Residential- Sales Volume trend Fig: Rental Property trend

1.010.80

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mn

sqft


Due to its lower land costs and balanced revenue stream (Rental and investment income), we anticipate Oberoi’s EBITDA income of Rs6,298mn in FY2011E and Rs8,077mn in FY2012E. However, we expect EBITDA margin to suppress for FY2011E and FY2012E to 59.4% and 58.6%, respectively, primarily due to the increase in raw material costs and ramp up in construction activities to complete most of the projects. We expect adjusted net income to increase by 21.4% y-o-y to Rs5,554mn in FY2011E and 27.5% y-o-y to Rs7,081mn in FY2012E, on account of zero levered balance-sheet while net profit margin to decline at 52.4% and 51.4% in FY2011E and FY2012E, respectively, due to the carry-on effect of anticipated decline in EBITDA margins over the same period. Hence, we expect EPS of Rs15.3 and Rs19.5 for FY2011E and FY2012E, respectively.

Fig: EBITDA income trend Fig: Net profit trend

2474

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Oberoi’s EBITDA income of Rs6,298mn in FY2011E and Rs8,077mn in FY2012E.

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Valuation We initiate coverage on the company with a BUY recommendation and target price of Rs299, indicating a potential upside of 29.0% from current levels Considering company's superior project profile, low cost project acquisition strategy and execution focus, we believe target price at par with NAV is fairly valued. Its strong presence in the Mumbai market gives better visibility of demand.

Particulars Rs mn Residential GAV 59474 Commercial GAV 21516 Retail Malls 7281 Hotel/Hospitality 1981 Social Infra 2646 Total GAV 92898 Less: Unpaid amount on landbank 0 Less: Debt 0 Add: Cash 16000 Total NAV 108898

No. of shares (in mn) 364

NAV per share 299

Fig: Project-wise GAV (Rs mn) Fig: Segment-wise GAV (%)

50168

25995

7346

9389

Oberoi Garden City- Goregaon- East Oberoi Splender- Andheri-East

Oasis Realty- Worli- Annie Besant Rd Oberoi Exotica- I & II, Mulund-West

64%

3%8%

2%

23%

Residential GAV Commercial GAV Retail Malls

Hotel/Hospitality Social Infra


NAV stands at Rs299 per share

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Financials

(Rs.mn)

Date End FY 09 FY 10 FY 11E FY 12E Category FY 09 FY 10 FY 11E FY 12E

Net Sales 4254 7836 10605 13775 Margin Ratio

Expenditure 1693 3164 4306 5697 EBIDTA Margin 58% 60% 59% 59%

EBIDTA 2561 4672 6298 8077 Operating Margin 56% 58% 58% 58%

Depreciation 73 91 114 148 Net profit Margin 59% 58% 52% 51%

EBIT 2488 4582 6184 7929 Profitability Ratios

Interest 4 0 0 0 ROCE 17% 25% 18% 19%

Profit before Tax 2484 4581 6184 7929 RONW 17% 25% 16% 17%

Tax 177 226 980 1250 ROA 17% 25% 16% 17%Reported Net Profit 2307 4355 5204 6679 Du Pont Analysis

No of Equity Shares* 324.6 324.6 364.2 364.2 PAT / PBT 0.9 1.0 0.9 0.9Adjusted EPS 7.7 14.1 15.3 19.4 PBT / EBIT 1.1 1.0 1.1 1.1

*IPO adjusted EBIT / Net Sales 0.6 0.6 0.6 0.6

Net Sales / Total Assets 0.2 0.3 0.2 0.3

(Rs.mn) Total Assets / Equity 1.3 1.4 1.2 1.3

as at 31st March FY 09 FY 10 FY 11E FY 12E ROE 17% 25% 16% 17%

Valuation Ratios

Share Capital 26 2887 3642 3642 EV/EBITDA 30.9 16.3 12.1 9.5

Reserves 13839 15392 30845 37927 EV/ Net Sales 17.9 9.7 7.2 5.5

Preference 571 359 0 0 Leverage Ratios

Networth 14436 18637 34487 41568 Debt-Equity Ratio 0.0 0.0 0.0 0.0

Secured Loans 0 0 0 0 Debt-Asset Ratio 0.0 0.0 0.0 0.0

Unsecured Loans 107 0 0 0 Turnover Ratios

Total Loan 107 0 0 0 Fixed Assts 1.6 1.0 0.8 0.8

Total Liab. 14543 18637 34487 41568 Working Capital 0.7 1.3 1.4 1.6

Inventory 0.6 1.3 1.4 1.5

Net Block 2736 3068 5075 7268 Total Assets 0.2 0.3 0.2 0.3

Cap WIP 3851 5103 7612 10539 Liquidity Ratios

Total Fixed Assets 6586 8171 12687 17807 Current Ratio 2.5 1.9 1.9 1.8

Investment 150 790 790 790 Quick Ratio 0.8 1.0 1.0 1.0

Current Assets Interest Coverage 3.0 0.0 0.0 0.0

Inventory 7122 6226 7669 8975 (Rs mn)

Sundry Debtors 272 404 494 604 Net profit after tax 2523 4576 5554 7081

Cash & Bank Bal 1669 3631 13264 14433 Depreciation 73 91 114 148

Loan and Advances 2725 6240 7954 9642 Other adjutsments 4723 0 0 0

Other current assets 5 17 17 17 Change in w. capital (1322) 513 (1700) (792)

Current Liabilities Net cash from Opr. Act.(A) 1205 5237 3968 6438Provisions 31 97 131 167 Net cash from invt. Act.(B) 1652 (2832) (4631) (5268)

Sundry Creditors 3962 6746 8259 10536 Net cash from fin. Act.(c) (1648) (443) 10296 0Net Current Assets 7800 9675 21008 22969 Inc/(dec) in cash 1208 1961 9633 1170Deff. tax asset/ liab. (net) 7 2.0 2.0 2.0 Cash at the beginning 461 1669 3631 13264Total Assets 14543 18637 34487 41568 Cash at the end 1669 3631 13264 14433

* Other Adjustment = Share in Profits/(Losses) of Associates (net) + Share of loss transferred to minority + Preacqusition profits adjusted against goodwill

Income Statement Ratio Analysis

Balance Sheet

Cashflow statement

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Name Designation Particulars

Non Independent, Non-Executive Director nominated by SSII

Independent, Non-Executive DirectorTilokchand P. Ostwal

Vikas Oberoi Chairman Cum MD

Bindu Oberoi Non Independent Director

Source:Company data

Key Management and Board Members

Jimmy Bilimoria Independent DirectorHe has been on the board since December 2007. He is a part of Ciba group for about12 years and held various posts including MD and non-executive chairman. Also aDirector on board of various public and private companies.

He has more than two decades of experience in the real estate sector. He is involvedin the formulation of corporate strategy and planning, overall execution 120 andmanagement and concerntrates on the growth and diversification plans of OberoiRealty Limited.

She holds a bachelor’s degree in commerce from University of Mumbai and has been

Non-Executive Director Since December 1, 2006. She is invovled in the areas of

interiors and designing for the projects of the Oberoi Realty Ltd. In addition, she is

involved in administrative function and formulation of its guidelines & procedures.

He has been on the board since December 2007. He is a part of Ciba group for about12 years and held various posts including MD and non-executive chairman. Also aDirector on board of various public and private companies.

He has been on the board since March 2009. He is also nominee director of MorganStanley Fund. He has past experience with Goldman Sachs Realty Japan and a 15 yearcareer with Starwood Hotels and ITT Sheraton Corporation.

Kavin C Bloomer

15

Initiating coverage

15

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Analyst Name Email-id Amit K. Sharma [email protected] Kalpesh Gothi [email protected] Umesh Patel [email protected] Rohit Gokhale [email protected] Kailash Gandhi [email protected]

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oberoi realty initiation report

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