Real Estate, Infra Q4 Results Preview - Order Inflows Witness Uptick For EPC Companies: ICICI Direct

ICICI Direct Report

New order inflows witnessed a healthy trend in Q4 FY23. We expect decent execution for construction companies on a YoY basis. For real estate companies, sales volume growth is likely to be healthy, led by launches. The commercial leasing as well as malls and hospitality segment will be robust, with consumption remaining healthy.

According to Anarock, real estate sales across India’s top seven markets recorded YoY growth of ~14% during Q4 FY23 at 113770 units. We anticipate residential sales momentum will remain healthy amid sustained demand and new launch offtake and despite rate hikes. However, the trend will be mixed led by respective player new launch momentum.

For Brigade Enterprises Ltd., we expect sales volumes to be up 16% YoY, 17% QoQ at 18 lakh square feet, driven by strong offtake from launches during the quarter. The sales at ~ Rs 1186 crore is likely to be up ~15% YoY.

With no major launch during Q4, we expect Oberoi Realty Ltd. to clock sales bookings of ~3.9 lakh sqft area during Q4 FY23, down ~25% QoQ with sales of ~Rs 880 crore.

The mall activity has been strong with Phoenix Mills Ltd.’ witnessing ~13% YoY growth in consumption in March. Hospitality is likely to show a strong recovery with occupancies firm and average room rates inching up.

For Kajaria Ceramics Ltd., we expect tiles sales volumes to witness muted growth of ~2% YoY on a high base and amid soft demand. We expect overall revenues to grow ~3.9% YoY to Rs 1144 crore. We expect Ebitda margins of 14%, up 180 basis points QoQ, on account of lower gas prices and alternate fuel use.

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