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Oberoi Realty (ORL) has divested its stake in Sangam City Township, a joint venture in which ORL held a 31.67% stake, for a sum of Rs 3.60 crore. Pune-based Balewadi Techpark is the buyer of this stake, which consists of 9,500 fully paid-up equity shares, each valued at Rs 10. This transaction was formalized through a share purchase agreement executed on October 26, 2023, as disclosed by ORL in a filing with the Bombay Stock Exchange (BSE).
ORL recently reported a 17% decline in sales bookings for the quarter ending September 30, 2023. Sales bookings during this period amounted to Rs 965 crore, down from the Rs 1,156 crore achieved in the corresponding quarter of the previous fiscal year. In terms of sales volume, sales declined from 4,78,892 sq ft in the similar period last year to 3,66,716 sq ft during April-September 2023.
However, the company has its financials strong and in place. As of September 30, 2023, Oberoi Realty exhibited a strong financial position with a net worth of Rs 12,842.11 crore. The company reported a profit after tax of Rs 456.76 crore in Q2 FY24, a significant leap from the Rs 318.62 crore registered in the corresponding quarter of the previous fiscal year, as detailed in the BSE filing. Additionally, the company's net consolidated total income displayed notable growth, standing at Rs 1,243.80 crore, marking a 74.74% increase from last year.
In September 2023, ORL also entered into an agreement for the development and redevelopment of a land parcel covering approximately 13,450 square meters in Tardeo, Mumbai. The company anticipates generating a free sale component of around 2.5 lakh square feet on the carpet area from this project.
In conclusion, ORL's divestment of Sangam City Township shares and the ongoing developments in the Mumbai real estate market signify ORL's strategic decisions to optimize its real estate portfolio and adapt to changing market conditions. Amid the challenges of declining sales, Oberoi Realty's reputation as a key player in the real estate market remains intact and is attested to by its strong financial position. The company's continued presence in the sector and its strategies to address market fluctuations underscore its resilience and adaptability in an ever-evolving industry landscape.
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