Dear Shareholders,
The Indian economy continues to be on a strong footing and is expected
to grow -6.5% in FY25, amongst the fastest in major economies, according to the World
Economic Outlook. Our economy has been resilient amongst global major economies and is on
course to becoming the fourth largest in the world. Strong economic fundamentals,
growth-oriented policymaking, prudent fiscal spending, and structural reforms have enabled
India to navigate through the global headwinds.
The real estate sector has witnessed strong performance across segments
during the year. Office spaces, residential, retail leasing and green developments have
all recorded a significant uptick in the year. Indian real estate continues to reign as
the preferred investment avenue for homebuyers as well as investors.
The residential sector has seen a sharp recovery, surpassing
pre-pandemic levels on the back of robust housing demand and resurgent supply by reputed
developers.
I am pleased to inform you that your Company has once again achieved
outstanding results across all our verticals during the financial year. In the last
fiscal, we recorded the highest ever quarterly and annual profitability driven by robust
sales momentum and healthy operational performance.
The residential real estate sector continues to experience strong sales
demand, driven by rising income levels, preference for homeownership, and a growing base
of aspirational consumers. At Oberoi Realty, we have leveraged innovation, human-centric
design, and our commitment to sustainability to continually enrich urban living and add
value to our residential offerings.
In the last year, we entered the Thane market with Forestville at
Kolshet and launched Elysian Tower-C at our flagship integrated development, Oberoi Garden
City, Goregaon while also delivering homes to customers at Maxima in JVLR, Eternia and
Enigma in Mulund and Sky City in Borivali.
The Indian office market continues to exhibit healthy absorption levels
near the pre-Covid peak levels. Our Grade-A office spaces witnessed sustained demand as
occupiers and businesses increasingly focused on quality workspaces and employee
wellbeing. Also, the leasing demand outlook for the office space remains strong.
Commerz III, our architectural marvel at International Business Park,
Goregaon will be operational in FY25 as we welcome our anchor tenant and continue to see
encouraging leasing interest. Your Company is well-poised to take advantage of this
upswing in the Mumbai Metropolitan Region (MMR) due to our focus on providing a complete
ecosystem and state-of-the-art facilities in our developments.
The mall segment continues to perform well on the back of rising
footfalls and a growing appetite for consumer spending. During the year, Oberoi Mall
recorded strong leasing interest from the best International and Indian brands. The
construction work is progressing well at Sky City Mall in Borivali, and we expect to
commence operations in the second half of FY25.
Positive consumer sentiment, domestic and corporate travel and inbound
travel momentum have continued to sustain and grow. Your Company is poised to expand its
hospitality portfolio as we extend our longstanding association with Marriott
International to develop hotels in Thane and Borivali. These luxury properties will be set
in our integrated developments and redefine the landscape of urban living and hospitality.
As India continues to consolidate its position as one of the fastest
growing economies and Indians look to buy bigger homes developed by reputed brands, we
remain confident on the demand for our offerings across verticals.
On the business development front, this year we completed the
acquisition of land parcels in Gurugram, Thane and a redevelopment deal in Worli. We
continue to actively explore potential business development deals and growth potential in
various markets to capitalize on the upcycle in the real estate sector and follow a
calibrated approach to launch new projects, ensuring quality and timely execution.
Environmental, Social and Governance (ESG) factors have become pivotal
in the real estate industry and have been incorporated as an integral part of our
corporate culture into every business vertical. With the publishing of our first ESG
Report, your Company reaffirmed its commitment to create positive social and environmental
impact while achieving business growth and provide transparency on our approach to measure
and manage this impact.
Backed by strong policies and processes, such as our environment,
health and safety (EHS) policy, procurement policy, RsPeople FirstRs employee engagement
and development activities, and our approach to project delivery enables us to record
significant successes and remain a Rspartner of choiceRs for our customers, our people,
our communities and other stakeholders.
I extend my gratitude to our Board members for their continued
guidance, our employees for their dedication and our stakeholders, for their unwavering
support and faith in us. We eagerly look forward to your continued partnership on this
exciting journey.
Best wishes,
Vikas Oberoi
Chairman & Managing Director Oberoi Realty