Oberoi Realty Q2FY20 Concall Summary
Business Updates
- The possession for Thane property has come to the company and transaction was closed at Rs 15 crore/acre
- A IncomeTax search was carried out in August and the company doesn’t see any material impact of this
Participants
Bank of America
HSBC
Citigroup
Morgan Stanley
Axis Capital
Motilal Oswal
Goldman Sachs
SBI Caps
Edelweiss
QnA
- The subvention schemes by banks are still continuing and are as per preference of the banks
- Still on the drawing board with regards to launch of Thane project and that will be disclosed close to Q4 when the project is launched
- The slowdown in sales of projects seems to be due to the general slowdown in the economy
- Have started construction for Commerz 3 which has 1.8 million sqft leasable area and is under construction to be completed by March 2022
- The work on Worli land has started for the mall and office space and a small hotel of 80-100 rooms to go along with
- The construction work is expected to be complete on the Worli property in 2.5 to 3 years
- Expecting the market to bounceback from this slowdown and there is nothing exceptional about this slowdown in sales
- Not interested in any legacy projects through NCLT
- The Worli project has a clearance for 75 floors on the back tower while civil aviation clearance for only 65 floors and the company is waiting for one more quarter to decide on whether it can get a few more floors under clearance
- The Mulund project is facing some trouble from the buyer’s part in term of financing
- The mall in Worli will be built and started much before the office building in Worli
- Have applied for OC for 360 West and expecting it in 3-4 months
- There are far too many developers in India and slowly that system is changing
- The land acquisition for Thane project led to operational cash flows becoming negative