Oberoi Realty mulls entering NCR, Bengaluru once Covid-19 pandemic subsides

Topics Oberoi Realty | COVID-19

Oberoi Realty, the third largest listed property developer, is looking to venture into the National Capital Region and Bengaluru once the coronavirus (Covid-19) pandemic subsides.

It is looking to build a portfolio of residential, office and mall properties in these cities, apart from its mainstay of Mumbai.

"We are evaluating opportunities to buy land in Mumbai, NCR and Bengaluru. We are seeing how this (Covid-19 pandemic) plays out. We will take a call later," said Vikas Oberoi, chairman and managing director, during the Q4 earnings call today.

Oberoi said that the company wanted to be a serious office property developer after its office lease deal with global investor Morgan Stanley. It recently concluded the deal for leasing 1.1 million sq ft WIth Morgan Stanley at its Commerz-III building, making it one of the largest office space transactions.

"We believe that the real estate sector will continue to undergo consolidation across all segments, hence only strong and reputed brands like us with a strong track record will be able to outperform," Oberoi said in a earnings release.

The company disclosed Q4FY20 and Q1FY21 results together as the Q1 was a washout, Oberoi said.

Its consolidated profit before tax fell 2.6 times at Rs 39.78 crore in Q1FY21 as compared to Rs 104.24 crore in Q1FY20,
The company’s revenues dipped 37 per cent in Q1FY21 to Rs 126.86 crore as compared to Rs 200 crore in Q1FY20.

The company’s profit before tax rose 59 per cent in Q4FY20 to Rs 350.80 crore as against Rs 220.12 crore for Q4FY19. The company recorded consolidated revenue of Rs 625.73 crore for Q4FY20 as against Rs 597.34 crore for Q4FY19.

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