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Informist, Tuesday, Jan. 21, 2025

--Oberoi Realty: Planning to launch mall, international school in Thane 

--CONTEXT: Comments by Oberoi Realty mgmt in post-earnings conference call 

--Oberoi Realty: Raised prices of Borivali, Goregaon, Thane projects by 20% 

--Oberoi Realty: May launch projects on existing land parcels in 12-18 months 

--Oberoi Realty:Will divert cash generated from ops for business development 

By Aman Aryan and Avishek Rakshit

MUMBAI – Oberoi Realty Ltd. plans to come up with real estate projects on its existing land parcels in Mulund, Tardeo, Adarsh Nagar, Gurugram, and Alibaug in the 12–18 months, Chairman and Managing Director Vikas Obeoi said on Tuesday. However, some of these projects could begin sooner than the minimum projection of 12 months, he said.

Addressing sector analysts in a conference call after announcing the company's financial results for Oct-Dec Monday, Oberoi said plans were afoot to launch the last tower of Sky City in Mumbai's Borivali after the launch of a mall in the same project. The mall is expected to be launched by mid-February or early-March, he said.

However, Oberoi cautioned that the company might defer some of the launches. "Until and unless something comes to a level where we are excited and bring it to the people, we won't really launch," he said. 

For instance, although the company has completed 20 towers in its real estate project in Thane, it has decided to slow down the launch. "We only want to trade cautiously (in) new markets, how we want to play them out and all that," Oberoi reasoned.

Oberoi Realty is likely to recreate a Borivali-like housing and living ecosystem in its Thane project as well. It plans to come up with a mall, an international school, and multiple phases of projects in the region, the top official said. Also, the company has signed an agreement with the JW Marriott Group for a hotel in the region.

Oberoi Realty's first phase of the Thane project is almost the size of a typical project of any large developer, Oberoi said. As of Dec. 31, the company had 3.67 square feet of inventory in its key development properties, according to the investor presentation. "We are probably amongst the only real estate company who have this sort of ready inventory where there is really virtually no debt on any of this," Oberoi said. The company said it would divert the cash generated from its operations to buy more land. Oberoi Realty had INR 34.47 billion of cash as of Dec. 31, according to the company's investor presentation. 

After market hours on Monday, the company reported 72% growth in its consolidated net profit for the December quarter at INR 6.18 billion. Its consolidated revenue rose 34% to INR 14.11 billion. The company has raised prices in Thane, Borivali, and Goregaon by 20% in the December quarter, Oberoi said, and added that even today, there is enough headroom for the company to grow on price.    

On Tuesday, shares of the company closed at INR 1,858.05 on the National Stock Exchange, down 7.2%.  End

Edited by Avishek Dutta

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