Sunteck Realty (SUNTECK) Q2 24/25 earnings summary

Executive summary

• Achieved strong growth in pre-sales, collections, revenue, EBITDA, and net income in Q2 and H1 FY25, with significant year-over-year increases across all key financial metrics.

• Net debt to equity ratio at zero or negative, resulting in a net cash surplus and an upgraded AA credit rating from India Ratings (Fitch).

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

• Expanded annuity income portfolio and continued focus on luxury real estate in the Mumbai Metropolitan Region (MMR), India's largest and fastest-growing market.

• Received the Sector Leader Award in the 2024 GRESB Real Estate Assessment for sustainability and achieved a GRESB score of 96.

Financial highlights

• Q2 FY25 pre-sales reached ₹524 crores, up 32.7% year-over-year; H1 FY25 pre-sales grew 31.2% to ~₹1,026 crores.

• Q2 FY25 collections were ₹267 crores, up 24.8% year-over-year; H1 FY25 collections totaled ₹609 crores, up 21.3%.

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

• Q2 FY25 EBITDA was ₹37 crores (22% margin); net profit was ₹35 crores (20% margin). H1 FY25 EBITDA was ₹69 crores; net profit was ₹57 crores.

• Net operating cash flow surplus for H1 FY25 was ₹191 crores, a 112% increase year-over-year.

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 (~₹1,500 crore), Sunteck Beach Residences towers (₹400–₹500 crore), Sunteck Sky Park tower (₹600–₹700 crore), Sunteck Crescent Park towers (~₹300 crore).

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

• Targeting to double GDV every three years, aiming for ₹52,000 crores by FY27.

• Annuity income expected to rise to ~₹320 crores annually by FY2027-28E as new commercial assets come online.