Release Date: July 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Strong profitability and encouraging sales traction at Three Sixty West, Worli.
- High leasing interest across office assets with expected occupancy ramp-up in the next few quarters.
- Successful execution and positive cash flow from the Forestville project in Thane.
- Plans to launch new projects in Pokhran, Thane, Goregaon, and Borivali during the festive season.
- Positive outlook for leasing Commerz III, with expectations to be fully leased by the end of the year.
Negative Points
- Decline in Average Selling Prices (ASPs) at Three Sixty West due to sales of lower floors.
- Large inventory in the Thane micro market, requiring initiatives to accelerate sales.
- Soft traction in the Mulund project with a significant number of unsold units.
- Uncertainty around the launch timelines for projects in Tardeo and Peddar Road.
- Potential delays in monetizing inventory in Mulund and Borivali, with expectations to sell remaining units over the next two years.
Q & A Highlights
Highlights from Oberoi Realty Ltd (BOM:533273, Financial) Q1 FY25 Earnings Call
Q: Can you provide an update on the Kolshet Road project and the initiatives for accelerating sales in Thane?
A: Forestville is progressing well, ahead of schedule, and has received positive feedback. Sales have increased due to the quality and design of the project. No changes in payment plans were made. The Pokhran Road project is expected to launch around Diwali, starting with one or two towers.
Q: What is the reason for the decline in ASPs at Three Sixty West, and what is the sales outlook?
A: The decline is due to sales of lower floors. There is no significant competition, and the company has a monopoly on inventory. Sales trajectory is expected to improve.
Q: Any updates on the Gurugram and Adarsh Nagar projects?
A: The Gurugram property has been registered, and work is in progress at Adarsh Nagar. Both projects are slated for launch by the end of this year or early next year.
Q: What are the plans for the Glaxo Worli project?
A: The project will include a mall, an office building, and a small boutique hotel. Work is expected to start within the next two quarters.
Q: What factors influence the sales volume at Three Sixty West, and how will the strong balance sheet be utilized?
A: Sales depend on the profile of buyers and pricing. The balance sheet will be used for land acquisition, construction, and potentially capital return, with a focus on reinvesting in the business.
Q: What is the leasing outlook for Commerz III?
A: Commerz III is expected to be 99-100% leased by the end of the year. The building has attracted high-quality tenants and is the tallest commercial building in the country.
Q: What is the strategy for the Mulund project, and when will it be monetized?
A: The project is performing well, and the remaining inventory is expected to be sold within the next two years. The focus is on obtaining the balance occupation certificate and opening up for sales.
Q: Any updates on the Tardeo and Peddar Road projects?
A: These projects are in progress and may launch in the last quarter of this year or the first quarter of next year. The focus for the festive season is on launching towers in Goregaon, Borivali, and Pokhran Road.
Q: What is the expected occupancy for the Sky City Mall?
A: The mall is expected to be 80-90% leased within this year, with most tenants ready for fit-out. The mall has received strong interest and is expected to perform well.
Q: What is the configuration for the Glaxo Worli project?
A: The project will include 6-7 lakh square feet of mall space, 80,000-100,000 square feet for a hotel, and 1 million square feet of office space, totaling around 1.8 million square feet.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
