Sunteck Realty (SUNTECK) Q2 24/25 earnings summary

Executive summary

• Achieved strong growth in Q2 and H1 FY25, with pre-sales up 31.2% year-over-year and H1 FY25 pre-sales at Rs.1,026 crore.

• Net operating cash flow surplus for H1 FY25 was Rs.191 crore, a 112% increase year-over-year, with a net cash surplus of Rs.98 crore.

• Sunteck City Fourth Avenue at ODC Goregaon West is nearing completion, expected to boost future cash flows.

• Received the Sector Leader Award in the 2024 GRESB Real Estate Assessment for sustainability.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved and released.

Financial highlights

• Q2 FY25 pre-sales reached Rs.524 crore, up 32.7% year-over-year; H1 FY25 collections totaled Rs.609 crore, up 21.3% year-over-year.

• Q2 FY25 operating revenue rose 578% year-over-year to Rs.169 crore; H1 FY25 revenue was Rs.485 crore, up 408% year-over-year.

• Q2 FY25 EBITDA was Rs.37 crore (22% margin); H1 FY25 EBITDA was Rs.69 crore, up 418% year-over-year.

• Q2 FY25 net profit was Rs.35 crore (20% margin); H1 FY25 net profit was Rs.57 crore, up 378% year-over-year.

• Consolidated revenue for Q2 FY25 was Rs.169.05 crore, with consolidated net profit of Rs.34.63 million; standalone net profit for Q2 FY25 was Rs.39.31 million.

Outlook and guidance

• Multiple new launches planned for H2 FY25, including towers at Fifth Avenue (ODC Goregaon West), Sunteck Beach Residences (Vasai), Sunteck Sky Park (Mira Road), and Sunteck Crescent Park (Kalyan).

• GDV for upcoming launches: Fifth Avenue tower (~Rs.1,500 crore), Sunteck Beach Residences towers (Rs.400–500 crore), Sunteck Sky Park tower (Rs.600–700 crore), Sunteck Crescent Park towers (~Rs.300 crore).

• Expanding annuity income portfolio with projected average annual rental income to reach Rs.320 crore by FY27-28E.

• Confident of launching Nepean Sea Road, Dubai, and Bandra West projects before FY26, all included in GDV pipeline.

• Management expects recoverability of disputed receivables and investments, supported by favorable legal opinions and arbitration awards.