Oberoi Realty Ltd (BOM:533273) Q2 2025 Earnings Call Highlights: Strong Residential Sales and ...

GuruFocus News
4 min read

In This Article:

  • Residential Sales: Recorded sales of close to INR 350 crores for the first phase of Oberoi Garden City, Thane.

  • Project Updates: Received full Occupation Certificate for Enigma, Mulund, and Sky City Mall, Borivali.

  • Leasing Interest: Strong leasing interest and ramping up occupancies across office assets.

Release Date: October 21, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Oberoi Realty Ltd (BOM:533273) reported a strong quarter driven by healthy residential sales momentum and robust performance across annuity assets.

  • The company received full Occupation Certificate for the Enigma project at Mulund, indicating progress in project completions.

  • There is strong leasing interest across office assets, with occupancies ramping up, showcasing demand for commercial spaces.

  • The launch of Oberoi Garden City in Thane received an overwhelming response, with sales of close to INR350 crores, representing almost 50% of the launch inventory.

  • The company is planning to deploy INR6,000 crores for expansion and growth, indicating a strategic focus on scaling operations and acquiring new properties.

Negative Points

  • The fundraise of INR6,000 crores was unexpected, raising questions about the immediate need and deployment strategy.

  • There is uncertainty regarding the exact timeline for deploying the raised funds, with a tentative plan to utilize them in the next four to five months.

  • The company is cautious about committing to new project launches within the current financial year, indicating potential delays or strategic holdbacks.

  • Revenue recognition for Three Sixty West is lower than expected despite strong sales, due to criteria not being met for recognition.

  • Pricing trends in some projects have not increased as significantly as in others, potentially affecting overall profitability.

Q & A Highlights

Q: Can you explain the purpose of the INR6,000 crores fundraise and how it will be utilized? A: The fundraise is intended to expand, acquire new properties, and accelerate the company's growth. We plan to deploy this capital in the next four to five months, focusing on purchasing large land parcels to support our growth strategy. - Vikas Oberoi, Executive Chairman and Managing Director

Q: What is the launch pipeline for the rest of the financial year, particularly for Borivali and Goregaon? A: We have two towers in Goregaon, one in Borivali, and two in Thane ready for launch. While there is strong demand, we are not committing to specific launch dates yet, but we are prepared to launch when the time is right. - Vikas Oberoi, Executive Chairman and Managing Director

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