Key risks

 Technology/server failures & high regulatory interventions: Any irregularities in the servers could halt trading on the platform, thereby impacting the NSE’s volumes. Moreover, it could also damage its reputation. In Oct’12, NSE had to suspend trading activities due to server failures. Since then, the platform has been operating on multiple servers.  Loss in market share: In the derivatives segment, BSE has emerged to be a competitor with 25%+ market share in the options segment notional turnover. Further increase in market share can be detrimental to NSE.  Adverse verdicts in legal cases: NSE has been embroiled in multiple legal cases over the past decade. Any adverse judgments on these cases leading to incremental penalties can have adverse financial implications. December 2024 112

SWOT analysis

Strengths
An undisputed market leader in equity and derivative segments Asset-light model supports high cash conversion rate With disproportionate market share and liquidity provided by NSE, it shall continue to maintain its dominant position

Weakness

Higher dependency on transaction revenue (options revenue) to drive profitability Negligible market share in the commodity segment  Impact of co-location case on overall profitability.

Opportunities

Diversification of revenue from other segments to reduce dependency

Structural growth in capital markets (growth in Demat accounts, PAN cards, NSE active clients, etc.)

 Increasing financialization of household savings

Retail investor participation is on the rise, as the perception of Indian equity markets is evolving, with the younger generation believing that equity markets provide an opportunity to earn Alpha.

Threats

Technology risk and cyber security attacks

 Impending penalty on colocation case

Unfavorable regulatory interventions and decision

Good morning

OBEROI REALTY LIMITED Company details

Oberoi Realty Ltd is a real estate development company operating in Mumbai, focused on premium developments. The company's focus is residential projects, but they also have a diversified portfolio of projects covering segments of the real estate market, like commercial, retail, social infrastructure and hospitality projects. The company has developed over 47 projects at strategic locations across the Mumbai skyline aggregating ~13.6 million sq. ft of spaces (group entity including promoter group) with another 29.7 million sq. ft. (carpet area) in the making as of March 2024. They have aggressive plans for upcoming projects in various parts of Mumbai and other regions. In order to achieve the scalability required to undertake large developments, they outsource work to leading international and domestic consultants in the areas of architecture, design, engineering and construction. The company appointed Samsung C&T Corporation as its general contractor for the iconic high-rise mixed-use project in Worli Mumbai. Revenue from real-estate contracts is recognized over a period of time in accordance with the requirements of Ind AS 115 using the percentage of completion method.

The Group’s investment properties consist of 5 commercial projects in Mumbai. It consists of Commerz I, Commerz II, Oberoi International school (Goregaon), Oberoi International school (JVLR) and Oberoi Mall. Investment properties are rented to tenants and are not intended to be sold in the ordinary course of business. The company also has 269 keys of The Westin Mumbai Garden City (Hospitality segment) with an ARR (average room rate) of ₹12,224, RevPAR (revenue per available room) of ₹10,190 with 83% of occupancy in Q1 FY25

#SALES #GROWTH 5 Year CAGR: 11.7%

In FY24, the company booked 704 units across the carpet area of 10,74,825 sq ft with a booking value of ₹3,996 cr. The revenue registered during the year was ₹4,496 cr. The RERA carpet area sold during FY23 was 16.75 lakh sq ft. The average implied realization increased from ₹30,539/sf in FY23 to ₹37,449/sf (up by 22.6% YoY) in FY24 which is largely due to the release of high-rise inventory. The company has launched ‘Forestville’ the first luxury residential project in Kolshet, Thane. It received occupation certificate for Sky city towers. It launched tower C in Elysian project at Oberoi Garden City. In Q1 FY25, company has booked 139 units across the carpet area of 2,10,783 sq ft with a booking value of ₹1,067 cr up by 124% YoY. The revenue registered was ₹1,405 cr up by 54% YoY. They received occupation certificate for Commerz III (2.4 million sq ft of carpet area) which is already 70% leased out. The company is gearing up for Pokhran, Thane launch along with towers in Goregaon and Borivali during the upcoming festive season.

#EBITDA #GROWTH 5 Year CAGR: 15.8%

In FY24, the EBITDA stood at ₹2,410 cr which increased by 14% YoY. This was due to higher realizations. In Q1 FY25, the EBITDA registered were ₹815 cr regsitering a growth of 72% YoY.

#PAT #GROWTH 5 Year CAGR 18.8%

In FY24, ₹1,918 cr and is not inclusive of the profit with JV of ~₹9 cr. In Q1 FY25, the PAT was at ₹582 cr up by 82% YoY.

#EBITDA #MARGIN

In FY24, EBITDA margin was 53.6% and the EBIT margin was 97.1% Rental, Residential segment was 48.3%, 39.4% hospitality and -13.5% in Property management services. Positive impact of better gross margin of 53% (v/s 50% in FY23) on account of mix. In Q1 FY25, EBITDA margin stood at 58% whereas, the EBIT margin was 91.7% for Rental, Residential segment was 54.6%, 39.8% hospitality and -18.9% Property management services.