Oberoi Realty Limited (OBEROIRLTY) Earnings Call Transcript & Summary

So again, we spoke about all projects. Today, we have a release, which is on [indiscernible] . We'll be launching that. We have 2 towers, 1 each in Okan Road and coal shade which we will launch within this year itself, then we have a project in Alibaba that we will launch. So a lot in the pipeline, I mean, again, yes.

Understood. My second question is on the the stake has been slowing down since the past 3 quarters. I mean, we sold 4 -- 4 units in the second quarter FY '26. Now we're down to 1 unit. And we are also bringing in new [indiscernible] inventory this year. So how should we think about the offtake in 360 Wes? And by when are we planning to consummate the entire inventory?

So again, a lot of resale has happened rather I wouldn't call it [indiscernible] sales by our while and 1 partner in 360 West. So the flats are selling. It's just that like now we are the only ones left with inventory. So you will see some momentum there as

Understood. And then just a final question on the revenue recognition on the residential front. It's slightly lower than the past 3 quarters, roughly 8.8 billion versus the last 3 quarter rate of 14 billion to 13 billion. Can I know like what's the reason behind the drop in 1Q FY.

So it depends on 2 things. So for example, where we are selling finished units like in the case of 360 or in the case of Mulund, there the revenue recognition will happen once the final payments from the customers are received and the position is handed over. As far as the other projects are concerned, there the revenue recognition happens on the basis of percentage of work done. So that's the only dichotomy, which is there. So at times, for example, in Mulund, if somebody pays you on fifth of July and sort of 30th of June, then that recognition gets deferred to the next quarter. So it's really a question of how that -- basically, the order book is there. The only thing is how it flows through the P&L. That's all.

The next question comes from the line of Rahul Jain with Elara Capital.

Just a quick clarification on 360 north. The gross bookings of 80 billion plus I mean, all the allotments relate to these bookings are done? Or are there any pending allotments that are there?

In the sense of allotment or, I mean... -- allocation, all -- Yes, all done.

Okay. Okay. So it's completely impressed from the court roading

Yes, yes.

[Operator Instructions] The next question comes from the line of Karan Khanna with Ambit Capital.

Thanks, Vikas. So on my side, firstly, given the success that you've seen in Gurugram, and in a recent interview, you also mentioned you would like Gurugram to become a bigger market than Mumbai. Given that context, what kind of discussions are you having with landowners in the market in terms of BD? And perhaps what kind of partnerships are you evaluating in the market? And if you can talk a bit about how are you looking at the opportunities in Delhi and Noida as well and price points or segment that you would like to operate into in the entire NCR market over the long term.

So Karan, like I said earlier, that business development is literally an everyday job for us. Now our focus has increased, and we have now started including NCR, both Noida and Gurgaon for that. We continue to get offers but we are mindful on what we want to do, how we want to do for us, land, location, everything is really important. And I can only answer it in this many words -- can't tell you specifically what BD project we are pursuing, we do it all the time. And you hear over time. In terms of markets, we work on -- we work in a market like Thane where sale prices are anywhere between 20,000 and 25,000 on [indiscernible] . So we are happy to work within those markets. If you have a market like that, we want to ensure that these are growing markets. And there's a large enough land parcel for us to monetize over time. And that's exactly what we will do when we go to either Noida or Gurgaon. And what I like about that market and what prompted me to say that was that I feel that, that market is both width and depth, and we really want to clear that market. That's about it.

Sure. And then secondly, on the price hikes, can you talk about the quantum of price hike that you have taken in the past few months to absorb any inflationary impact owing to the imposed cost inflation? And how is the absorption of the price hikes in the market? And a follow-up, if you look at Eternia, where your realizations have actually crossed Enigma during the quarter. So given that you have more launches planned in Mulund what kind of price points are you looking at in terms of future launches in this market?

So Karan, our strategy is always to be proactive when it comes to pricing, if you see what we've done in both Goregaon and [indiscernible] , we increased our price -- and in fact, I must say that the markets have helped us. All the apartments that are being resold in Borivali and [indiscernible] continue to sell at higher prices, buildings that are being complete are actually setting new benchmarks. So I must say that my customers know how to sell my apartment better than I do because they literally lead the price increase. And so for us, it's not like we wait for any external factor we ensure that there's a constant price hike, and that's why there's no -- like no knee-jerk reaction on increasing a price just because external factors are not favorable or anything like that. So it's all planned. We always have contingency also planned. We have price increase plans and we exactly know when to increase the price, all of that. So we do that.

The next question comes from the line of Harsh Pathak with Motilal Oswal Financial Services.

So first of all, many congratulations on the NCR performance. So my first question is on the launch pipeline. Vikas just mentioned that we have the Pedro project, the new phases at both the Thane projects the Alibagh and I think [indiscernible] also in the pipeline. So which of these projects will come up in FY '27 which would get launched in FY '28. And is there a possibility that this minimal lifestyle project in model will get launched in the FY '28 pipeline as well?

The projects that I named all of them are there's a good possibility that we might bring in Mulund also and within the '27 because now we don't have any project in [indiscernible] other than these 2 that are continuing to sell and they are ready. So we are ready as far as designs are concerned. We are already on an approval stage. So even if let's say we get our approvals within the next 3 or 4 months, we can still look at a launch in the last quarter. So we play that out. But we have enough in more happening in '27, not thought of '28 as yet or at least don't want to announce 28, it's too far fixed.

Understood. And regarding the NCR balance inventory, I think in 1 of the media interviews, you mentioned that INR 16,000 crores is the total of the project. So are we thinking to launch the entire inventory in 1 go next year or maybe we might launch in a staggered manner

I really hope you are right in 16,000, but I mentioned 14. I'll still try to get 16 now that you've told me -- set a new target for us. Now on a serious note, Sorry, what exactly was your question? I got a little fluxed in your 16,000 versus my 14,000.

Yes. So my question was, are we thinking to launch the entire balance inventory in 1 go next year? Or we would be doing in more staggered manner over the next 2, 3 years?

Honestly, we have not thought we will think through and we'll see how we play that out. We've really not thought through. It will depend on multiple factors where are we in terms of our construction, what fees are we? Our first objective is to get the show apartment ready. We know we are doing something really special once that apartment is ready, I'm sure people will appreciate what we've done. And we look at that reaction and then decide. But it's really -- it's there in the offering for the next year for sure. How much, what price, I can't say that today.

The next question comes from the line of Abhishek Lodha with anti Stock Broking.

Just 1 question. So basically, we kept on [indiscernible] about the execution challenges, right? And now we are talking about value volumes. So how we are planning about the execution, the contractor side, the labor side or -- so that's what I think I want to understand.

So like I've been telling people that we believe that we now have crack the code as far as execution is concerned, we can build volume with quality -- and that's exactly what we intend to do. We have our systems in place. We've been in the business for too long now, and we know how to build quality. -- and at a decent speed, and this is what we've been working on. If you really see, we are probably amongst the few developers who are, as we speak, constructing almost 18 towers, which are anywhere between INR 60 crores and INR 65 crores, so at various levels of construction. So again, we already are doing volume. And now it's just a case of replicating. We have an excellent team in place. We have our external partners. And that's it. So we are at that stage today. I would say we've hit some sort of a tipping point where we can now really go into our next phase of expansion. And again, our brand is helping us. We are able to easily the way we were received in NCR. I feel confident now that Yes.

Just 1 question Saumil. On our Sky City Mall, right? So occupancy has increased, right? And I think the revenue has not been in sync with that. So anything to read on that?

No. So what had happened was in Q4 of last year, there was a lot of true-up which we did for the -- for all the retailers who had coming in since launch. So that is why there was a little bit of a bump up in that quarter because of that. And that is why that number, despite a lower occupancy might look to be higher than what the revenue for this quarter was. But yes, I don't want to read anything more than that. So -- that would have been a onetime thing, which has played out. From your onwards, I think you can consider this as a base. Even this, I will not consider that as a base because what happens is when we say this is the occupancy for the quarter, this is typically the occupancy at the end -- there are many retailers who -- some -- for all the new things which have started during the quarter, some will be for 3 months, some will be for 2 months, some will be for 1 month. So if you look at our numbers for commerce on or you look at our numbers for overall, which is a more comparable asset, there, they don't move around as much. So that's where once you hit steady state, then it works slightly differently. So maybe give it a few more quarters for them all to reach steady state, then I think then you will get a fair estimate of how much that mall will make every quarter

Ladies and gentlemen, we would take that as the last question for today. I now like to hand the conference over to Mr. Oberoi for the closing remarks.

Thank you all for taking time to take this call. We look forward to hearing from you on an ongoing basis please feel free to reach out to us or our Investor Relations team as and when you have any questions. Thank you again. Thank you all for your continued support.

Thank you, sir. Ladies and gentlemen, on behalf of Oberoi Realty, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.