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 ₹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 addition of a Dubai project with a GDV of INR 9,000 crore.

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

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

Financial highlights

• Operating revenue surged 348% year-on-year to INR 316 crore, with net income up 438% to INR 23 crore.

• Core EBITDA was INR 79 crore; adjusted for a one-time charge, it would have been close to INR 170 crore, with an adjusted margin near 50%.

• Basic and diluted EPS for the quarter were ₹1.56 (consolidated) and ₹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.

• Net debt/equity ratio at -0.01x as of Q1 FY25, with a cash surplus of INR 39 crore.

Outlook and guidance

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

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

• Rental income from annuity assets is projected to reach INR 320 crore annually by FY27.

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

• Amicable settlement in Dubai JV and project resumption anticipated to positively impact future results.