Oberoi Realty's consolidated net profit slumped 81.54% to Rs 28.07 crore on 80.43% drop in net sales to Rs 118.02 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) skid 81.61% to Rs 39.78 crore in Q1 June 2020 as against Rs 216.32 crore in Q1 June 2019. Current tax expense for the quarter slipped 75.46% at Rs 16.13 crore as against Rs 65.75 crore in Q1 June 2019. The Q1 earnings were announced after market hours yesterday, 14 July 2020.
The group's operations were impacted by the Covid-19 pandemic. The mall operations of company's subsidiary were severely impacted due to the coronavirus-induced lockdown in Q1 June 2020. Due to the prevailing circumstances, and having regard to significant uncertainties relating to collection of rental and other amounts from lessees and the ongoing discussions with lessees, the company has not presently recognized revenue of Rs 33.17 crore for the quarter ended 30 June 2020 in respect of contracts with its lessees in its mall.
Meanwhile, the company's board passed enabling resolutions for issue of non-convertible debentures up to Rs 1,500 crore by way of private placement. The board also approved issue of equity shares and/or any other securities convertible into equity for an aggregate amount not exceeding Rs 2,000 crore by way of qualified institutions placement to qualified institutional buyers.
Morgan Stanley and Oberoi Realty on 13 July 2020 announced that they concluded negotiations and reached a deal for Morgan Stanley to lease up to 1.1 million square feet office space for 9.5 years from Oberoi Realty to consolidate Morgan Stanley's Mumbai Global In-house Centre (GIC) operations to a single campus in the city. The new campus will be located at Oberoi Realty's Commerz III building in Goregaon and will be ready in 2023.
Shares of Oberoi Realty rose 1.27% to Rs 373 on BSE.
Oberoi Realty is engaged in construction and real estate development, and hospitality projects.
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