Oberoi Realty net down 37% in Q1

The Mumbai-based developer Oberoi Realty saw its net profit slide by 37 per cent for the first quarter ended June 2014 to Rs 64.33 crore against Rs 101.8 crore in the year ago period.

The company’s net sales for the quarter stood at Rs 172.7 crore, down 18 per cent from Rs 210.3 crore in the year ago period.

“The aggregate area booked during the quarter was 67,730 sq ft as against 47,675 sq ft booked in Q4FY’14. The order book stands at Rs 1,535 crore as against Rs 1,509 crore at the end of Q4FY14,” said a company statement.

Commenting on the prospects of the realty sector, Vikas Oberoi, Chairman & Managing Director, Oberoi Realty said: “With the uncertainty of the elections being over, we are seeing a distinct change in sentiments. The new government appears determined to tackle the macroeconomic issues and has begun in right earnest with a focus on infrastructure. The recent policy changes on FDI in real estate and the budget provisions for REITs also indicate a forward thinking approach on the sector.”

“The increase in volumes indicates that the customer is again confident of the ‘India story’. Our pipeline of projects coupled with the positive market conditions create an ideal environment for the company to deliver on its potential,” he added.

Muted result notwithstanding the scrip of Oberoi Realty closed in the green on Monday at Rs 246.30, up 2.56 per cent or 6.15 points on the BSE.