Sunteck Realty Ltd
NSE:SUNTECK
Sunteck Realty Ltd
NSE:SUNTECK
Price:
340.25
INR
-4.15%
Market Closed
Market Cap:
₹50B
Add Note
Add Target
Capture your thoughts and set a target
Decide at what price you'd be comfortable buying and we'll help you stay ready.
Based on
Margin of Safety
0%
10%
20%
30%
40%
50%
Your Price Target
Linked to
current price
· In Buy Zone
Loading
Note attached
Choose the stock you wish to monitor with a price target
Popular Picks
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
Ladies and gentlemen, good day, and welcome to the Sunteck Realty Limited Earnings Conference Call for Q4 and FY '25. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company; Mr. Prashant Chaubey, the Chief Financial Officer; and Mr. Abhishek Shukla, the Vice President of Strategy and Investor Relations.
Please note that this call will be for 30 minutes [Operator Instructions]. This conference call is being recorded, and the transcription of the same may be put up on the website of the company. [Operator Instructions]
Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may be based on historical information or facts and may be forward-looking statements, including those related to business standards, plans and strategies of the company, its future financial condition and growth prospects. These forward-looking statements are based on the expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by such statements.
I would like to turn the conference over to Mr. Khetan, the Chairman and Managing Director of the company. Thank you, and over to you, sir.
A very good afternoon to everyone, and thank you for joining us today. I would like to take you through the key developments for this period.
To start on a positive note, we have registered our highest-ever presales of INR 870 crores for the fourth quarter of FY '25, which led to the highest-ever full year presales of over INR 2,500 crores for FY '25, registering a robust growth of 32% over FY '24. With this, we have grown faster in FY '25 versus previous year, and we are confident of achieving similar growth in FY '26 with higher margins.
Sales contributions was from all projects, especially our uber luxury projects in Mumbai. These sales give us better margins as well. The net GDV as of FY '25 stands at about INR 40,000 crores, which has grown nearly 3x from FY '22. We continue to focus on acquisitions with higher EBITDA margins. We have spent more than INR 180 crores towards new acquisitions in FY '25. I'm confident of announcing a few new acquisitions very soon.
We have generated strong net operating cash flow surplus of INR 374 crores in FY '25. Our balance sheet remains strong, with a net cash surplus of INR 125 crores. Our net debt-to-equity has improved from minus 0.02x in third quarter of FY '25 to minus 0.04x at end of fourth quarter of FY '25.
As we move ahead, in FY '26, we remain focused on value-accretive project additions and more projects coming up for the revenue recognition. We are confident of surpassing the margins of the previous years.
I shall now hand over the call to Prashant Chaubey to take you through the financial performance of full year FY '25.
Thank you, sir. Good afternoon, everyone. I trust you have had the opportunity to go through our latest results and the investor presentation, which are published on our company website and the stock exchanges. I would like to take this opportunity to share a brief update on financial and operational performance of quarter 4 and full year of FY '25.
The key details are we sold INR 2,531 crores worth of area in full year FY '25, which is a 32% growth over FY '24 presales of INR 1,915 crores. During quarter 4 FY '25, presales registered a growth of 28%, booking value of INR 870 crores as compared to INR 678 crores in the same quarter last year.
Collections for FY '25 stood at INR 1,255 crores as compared to INR 1,236 crores in FY '24, resulting in a net cash flow surplus of INR 374 crores. The cash flow ROCE stood at 16%. Consolidated cash flow ROCE of last past 3 years stands at a weighted average of 20%.
On the profit and loss front, operating revenue grew by 51% year-on-year for the full year ended FY '25 to INR 853 crores in comparison to INR 565 crores in the same period in last financial year. EBITDA stood at INR 186 crores in FY '25, 58% growth over FY '24 EBITDA of INR 117 crores. EBITDA margin stood at 22%. We reported net profit of INR 150 crores, which is 112% growth over FY '24 net profit of INR 71 crores in FY '24.
For quarter 4 FY '25, operating revenue grew by 27% to INR 206 crores quarter-on-quarter, and EBITDA stood at INR 69 crores. EBITDA margin for quarter 4 FY '25 stood at 33%. On a quarterly basis, our EBITDA margin starting from quarter 1 of FY '25 has shown steady improvement of 10% in quarter 1 FY '25 to 22% in quarter 2 FY '25, 30% in quarter 3 FY '25 and ended the year with 33% in quarter 4 FY '25. We reported a net profit of INR 50 crores.
Our net debt to equity stands at minus 0.04x, with a cash surplus of -- net cash surplus of INR 125 crores during FY '25.
Thank you. With this, we open the floor for questions.
[Operator Instructions] The first question is from the line of [ Rishabh Gang ] from [ Sujeet Family Office ].
I hope that I'm audible.
Yes, please. Yes.
Good set of numbers. I wanted to understand what is the presales split between Nepean Sea and BKC, which is in our uber luxury one? Yes.
Yes. So [ Rishabh ], so our sales for BKC was -- in quarter 4 was -- in quarter 4, our sales for BKC was INR 150 crores, and our sales in Nepean Sea was INR 423 crores.
Okay. Also for the presales at Nepean Sea, right, what kind of agreement are we doing? Because I think it is not yet RERA launched, right? So yes, and has the old building of Bagasara demolishing started? Yes.
So the first -- your last question first, old building of Bagasara demolition has started in full swing. And what we have assigned now more areas to our high-profile owners and tenants of this existing building under the permissible norm. Under that, we are giving -- doing this new sales. We are -- that is a part of presales.
Okay. So you are -- so to the existing people who are living there in the area?
Yes, yes, yes, who have the [ occupancy ] rights and the tenancy rights.
Okay. Also, what is the status of our Dubai project?
So Dubai project, as we have always been mentioning, it is obviously under the approval and designing stage. And we will be looking to launch towards the later part of the FY '26 or early FY '27.
Just one more question from my end. Which are the projects, right, that are going to lead our presales for the next 2 quarters, especially in premium luxury and the aspirational luxury parts?
So we all know uber luxury and premium -- uber luxury is doing better than the premium luxury, and the premium luxury is doing better than the aspirational luxury. So obviously, uber luxury will definitely take more leads than premium luxury. But nevertheless, there are a lot of launches, which are coming -- new launches for us in premium luxury as well. So I think both will drive maximum growth, definitely much better than the aspirational luxury.
Sorry to interrupt, sir. I would request you to rejoin the queue for your follow-up questions. [Operator Instructions] The next question is from the line of Pritesh Sheth from Axis Capital.
Firstly, congratulations, I think a good year for us, both in terms of presales as well as P&L profitability. First question is on the next year's growth. What are the likely projects which are now going to contribute in terms of growth and status in terms of launches for each of those? If you can provide, that would be very helpful.
So Pritesh, for the launches, definitely, we are looking a formal launch of -- looking forward for a formal launch of Sunteck Nepean Sea Road project, which is of a GDV value of -- current status -- on the current status, more than INR 5,000 crores. And the 5th Avenue at ODC Goregaon West, which is one tower of GDV value of more than INR 1,500 crores. Then Sunteck Sky Park, one more tower which we look to launch in this current year, financial year, which is again close to GDV value of INR 700 crores. Then Sunteck Beach Residences Vasai, which, again, we will be launching SBR at again 1 or maybe 2 towers, with a GDV value of close to -- both the towers, put together, INR 400 crores to INR 450 crores. And then one phase of -- new phase of Sunteck World Naigaon, which is again close to INR 350 crores.
So all these new launches, what we are planning to see in this current financial year and with which we are confident that we will achieve our similar presales growth, what we have achieved in FY '25.
Got it. That's very helpful. And even Dubai, right, while you didn't mention right now, but...
So Dubai, we are not considering although in this presales, but we are trying our best to see that we can launch in FY '26 or else, early FY '27.
Okay. And what -- if at all, if it's FY '27, what would be causing that delay? I mean just a regulatory thing or...
Nothing else. Obviously, approvals and the -- in fact, the designing stage, we were contemplating the mix of the projects. So that's why we had to change the design once or twice. Right now, we are at a very advanced, advanced stage for a product mix because it's a large project. It's almost close to 3-acre land parcel next to Dubai Mall in heart of Dubai downtown. So we want to be very cautious what we are launching. And so now it is at the final stage. So now approvals, and then obviously, we have to look at launch.
[Operator Instructions] The next question is from the line of Gurpreet Singh from Arihant Capital.
Am I audible?
Yes, very much.
First of all, congratulations for the wonderful set of results. Sir, I have a couple of questions. First one is like collection seems to be more or less in line with the last year. There is no major -- so what kind of trajectory we are expecting on collections front? And secondly, how much revenue recognition we are expecting in the coming financial year now?
So collections, one thing is very clear that this time, the more presales, if you see, has come from the uber luxury and the new projects, the new launches, which are projects which are just going to start. So that's why the collection has been at the -- obviously, those collections at the initial stage is low. But knowing that now like 4th Avenue, ODC, Sunteck City, in the coming quarter, we are expecting that to receive occupation certificate. So the collections, which are due to -- because of the projects which are under completion will come in next 2, 3 quarters, we are expecting the collections to be obviously more robust this year than the last financial year.
Coming to the next question, I think I'll ask -- leave it to Prashant to answer your next question.
Gurpreet, so with regards to revenue recognition, definitely, with the occupation certificate getting received for Sunteck City 4th Avenue, so that project will come up for revenue recognition in FY '26.
And we are confident you'll see that similar group of 30%, 35% in even our revenue and our margins as well as our bottom line.
The next question is from the line of Abhinav Sinha from Jefferies India.
Congratulations on a strong quarter and year. On the sales trajectory, I just wanted to check, so you are expecting growth to be approximately 30% next year ex of Dubai?
So I've said a similar growth in spite where people are giving lesser guidance, but we are confident that we will have a similar growth this year, irrespective of Dubai.
Okay. So north of 20%, should that be a fair number?
Yes, yes, easily. Very confident.
And which segments do you think will drive this? This is basically BKC, Nepean Sea or whole mix?
So obviously, this year also, if you see, our sales has been all across all segments. But we all have been saying that uber luxury is definitely doing much better than the premium luxury and the premium luxury is doing much better than the aspirational luxury. So our major focus will be on premium luxury as well as uber luxury to drive this growth.
Right. Sir, secondly, I wanted to ask your observation on how pricing behavior has been across segment this year? And what are your expectations for the same next year?
So we are not contemplating any price rise in any segment. And we are hoping that even if the price remains stagnant, we are more focused on the velocity. And we'll try to see that we can do more velocity than the price rise because our margins are already very -- has improved a lot. And it will continue to see -- irrespective of the price rise, we are confident of our margins to remain intact or only going better from here.
[Operator Instructions] The next follow-up question is from the line of [ Rishabh Gang ] from [ Sujeet Family Office ].
Just one question. Any senior management hire that we have done, especially for the sales and marketing front because we are going to have a lot of uber luxury kind of inventory going forward?
So we are -- this is a regular process of hiring senior management in every department and everything. I think that process is already there, and we have enough staff for this new growth, and we are also hiring more people to see that we continue to maintain this momentum of our presales growth. And we have no concerns about that.
Any reason of asking this specific question?
No, just in the sense of capability building, but if you are confident then...
Yes, yes. No worries. And anything else?
No.
[Operator Instructions] The next question is from the line of Parvez Qazi from Nuvama Group.
Congratulations for a great set of numbers. Sir, I wanted to get your thoughts on our Bandra projects and when do we see that getting launched?
Which is the second project? Is that Bandra and...
No, only the Bandra project only.
Okay. So Bandra, we have already started this -- towards the end of this financial year, we have almost acquired that project redevelopment. I think we are already in process of -- architecture designs are getting finalized and in the process of getting the approvals. I think once that approval comes, we are quite confident that we'll be seeing -- we can -- I can give you on a conservative side towards the end of this financial year or towards the early next financial year, we will be able to launch that project.
But that is with a not very big GDV value. So we are not even considering that in our -- whatever numbers we are contemplating for the next -- always -- it comes in this financial year. It's always better and more, the merrier. So that's how it is, Parvez.
Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Kamal Khetan for closing comments.
Thank you all for taking the time out of your busy schedule to join us today. In case if any of your queries have been left unanswered, please feel free to reach out to our Investor Relations team. We truly value your continued support and look forward to strengthening this relationship. Stay safe, everyone, and thank you once again.
Thank you. On behalf of Sunteck Realty Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.