Sunteck Realty (SUNTECK) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 pre-sales rose 30% year-on-year to INR 502 crore, with collections up 19% to INR 342 crore, and consolidated revenue from operations at INR 31,627.99 lakhs, showing significant growth.

• Operating cash flow grew 32% year-on-year to INR 100 crore, with a net cash surplus of INR 39 crore and net debt-to-equity at -0.01x.

• Major project milestones include completion of Sunteck MaxXWorld at Naigaon (2,500 units handed over), near-completion of Sunteck City 4th Avenue, and a landmark Dubai project with a GDV of INR 9,000 crore.

• Consolidated net profit for Q1 FY25 was INR 2,278.09 lakhs, compared to a net loss in Q1 FY24.

• Amalgamation of subsidiaries and settlement in Dubai JV led to project resumption and streamlined operations.

Financial highlights

• Operating revenue surged 348% year-on-year to INR 316 crore, with net income at INR 23 crore and core EBITDA at INR 79 crore; adjusted EBITDA margin near 50%.

• Basic and diluted EPS for Q1 FY25 were INR 1.56 (consolidated) and INR 1.23 (standalone), both up from negative EPS in the prior year.

• Net operating cash flow surplus reached INR 100 crore, up 32% year-on-year.

• Long-term credit rating upgraded to AA by India Ratings (Fitch).

• Gross margin improved due to higher revenue and controlled expenses; finance costs decreased sequentially.

Outlook and guidance

• Pre-sales growth guidance for FY25 is 30%-35%, expected to continue for the next two years.

• Launch pipeline for FY25 includes new phases/towers across multiple projects, with a combined GDV of INR 5,000 crore.

• Dubai and Nepean Sea Road projects are expected to launch in FY26, providing further growth momentum.

• Annuity income portfolio expected to grow, targeting INR 320 crore annual rental income by FY27.

• Management expects recoverability of disputed receivables and investments, with legal proceedings and settlements in progress supporting future cash flows.