Suraj Estate Developers Ltd. Results

Q2FY25 Quarterly Result Announced for Suraj Estate Developers Ltd.

Realty company Suraj Estate Developers announced Q2FY25 results Total Income: Rs 109.6 crore compared to Rs 103.7 crore during Q2FY24, change 5.7% YoY. EBITDA: Rs 64.0 crore compared to Rs 63.4 crore during Q2FY24, change 1.0% YoY. EBITDA Margin: 58.4% for Q2FY25. PAT: Rs 31.8 crore compared to Rs 16.9 crore during Q2FY24, change 88.1% YoY. Rahul Thomas, Executive Director, Suraj Estate Developers, said: “We are extremely pleased with our operational performance this quarter, particularly given that it traditionally represents a seasonally week quarter. Despite this, we achieved a commendable 14% growth in sales volume alongside a 10% improvement in realizations, showcasing the resilience and growing demand for our offerings. The YoY decline in finance costs is another positive development, largely attributable to utilization of IPO proceeds for debt repayment and reduced blended average cost of borrowings. These favorable financial conditions have contributed to strengthening our bottom line and overall financial stability. Additionally, our successful Rs 343 crore raise through a preferential issue of equity shares and share warrants marks a pivotal milestone, providing growth capital to support key initiatives, including land acquisitions, working capital enhancement, general corporate purposes, and issuance-related expenses. This funding is essential to expanding our operational reach. We are committed to deploying these funds strategically to consolidate our standing in the residential and commercial real estate sectors, seize emerging opportunities, and deliver sustainable, long-term value to our stakeholders. Our optimism regarding the potential within the MMR region remains steadfast, and we look forward to capitalizing on its growth prospects in alignment with our vision for a robust and diversified portfolio.”

FY24 Annual Result Announced for Suraj Estate Developers Ltd.

Realty company Suraj Estate Developers announced FY24 results: Financial Highlights: Total Income: Rs 415.7 crore a 35.0% increase from FY23 at Rs 307.9 crore. EBITDA: Rs 236.4 crore a 54.3% increase from FY23 at Rs 153.2 crore. EBITDA Margin at 56.9% compared to 49.8% in FY23. PAT: Rs 67.5 crore at a 110.9% increase from FY23 at Rs 32.0 crore. PAT Margin at 16.2% compared to 10.4% in FY23. Gross Debt (Rs. crore): Rs 425.57 crore a decrease of Rs 167.52 crore from FY23 (Rs 593.09 crore). Net Debt (Rs. crore): Rs 315.34 crore a decrease of Rs 249.73 crore from FY23 (Rs 565.07 crore). Commenting on the performance, Rahul Thomas, Executive Director, Suraj Estate Developers, said, “The residential real estate market in India soared in Q1 of calendar year 2024, fueled by persistent high demand. High-end and luxury segments led the charge, while the mid-range maintained its dominance in launches. With infrastructure boom, improved connectivity and a notable 18% YoY absorption rate increase, there's a 31% YoY drop in unsold inventory, presenting growth opportunities for industry players like us. FY24 was a year of strong performance for us where we achieved a remarkable 35% increase in sales over FY23 and an 111% growth in Profit After Tax as compared to the previous year.Our effective cost control measures led to a growth of 54% in our EBITDA thereby improving our margins by ~710 bps. Operationally during the year, we sold 1,07,136 sq ft translating to sales of Rs 483 crore. Collections for the year stood at Rs 316 crore. Focus during the year was on selling luxury projects which reflects in improved realisations of Rs 45,074 per sq ft in FY24 vs Rs 42,420 per sq ft in FY23. The past quarter witnessed an amicable resolution of a longstanding litigation, signifying a significant milestone for our company and reinforcing our dedication to excellence in the real estate domain. This favourable resolution not only marks a crucial achievement but also unlocks a sales potential of Rs 350 crore for us. Furthermore, the projected redevelopment of five buildings is expected to generate an additional Rs 225 crore, further enhancing our company's financial outlook. We at Suraj continue to express unwavering commitment to continue delivering world-class luxury projects. We stand poised at the threshold of immense opportunity, fuelled by our optimism for growth.”

Q2FY24 Quarterly Result Announced for Suraj Estate Developers Ltd.

Realty company Suraj Estate Developers announced Q2FY24 results: Financial Performance Highlights Revenue: Suraj Estate Developers reported a Q2FY24 revenue of Rs 103.46 crore, marking a marginal quarter-over-quarter (QoQ) growth of 1.0% from Rs 102.41 crore in Q1FY24. EBITDA: The company saw a substantial increase in its EBITDA, with a 35.1% QoQ growth, reaching Rs 63.14 crore in Q2FY24, up from Rs 46.73 crore in Q1FY24. EBITDA Margin: The EBITDA margin expanded significantly from 45.6% in Q1FY24 to 61.0% in Q2FY24. PAT (Profit After Tax): Suraj Estate Developers witnessed a PAT growth of 16.5% QoQ, with the value climbing to Rs 16.92 crore in Q2FY24 from Rs 14.53 crore in Q1FY24. Borrowings and Debt Management Debt Reduction: The company reduced its borrowings substantially, with debt coming down to Rs 554.35 crore as of September 30, 2023, from Rs 598.50 crore as of June 30, 2023. Debt Prepayment: The prepayment/repayment of debt amounted to Rs 285 crore in December 2023 from IPO proceeds, along with an additional repayment of Rs 23.50 crore funded by gross collection proceeds. Interest Cost Savings: These repayments are expected to result in interest cost savings of approximately Rs 40-45 crore going forward. Sales and Operational Performance Sales Area: The sales area in Q2FY24 stood at 19,397 sq.ft., compared to 29,489 sq. ft. in Q1FY24. Sales Value: The company's sales value in Q2FY24 was reported at Rs 85.22 crore, while in Q1FY24, it was Rs 133.33 crore. Collections: Collections during Q2FY24 were Rs 67.25 crore, down from Rs 69.42 crore in Q1FY24. Strategic Developments New Launches: The company plans to launch Project Lumina in Mahim, Mumbai, in Q4FY24 and has already reached the Piling stage of work. Ongoing Projects: Progress was reported on several luxury projects, including Palette in Dadar, Bandra Phase 1, and forthcoming commercial projects. Commenting on the performance, Rahul Thomas, Executive Director, of Suraj Estate Developers, said, “We are extremely pleased with our recent listing on stock exchanges and are excited as we continue our journey, now as a listed entity. During the IPO, we had raised Rs 400 crore of which a large sum was to repay debt. I am happy to inform you that, we have prepaid/repaid debt to the tune of Rs 285 crore in December 2023 using the IPO proceeds and an additional Rs 23.50 crore of unsecured debt is repaid from gross collection proceeds, which is likely to result in interest cost savings of Rs 40-45 crore (approx.) going forward. The interest savings will be used for faster completion of the ongoing projects. On the operation front, Q2FY24 is usually a seasonally weak quarter despite which we have achieved a pre-sale number of 19,397 sq. ft. of area reflecting sales amounting to ~Rs 85 crore. We continue to command a high premium in the niche micro market that we operate in, resulting in improved realizations that can be seen. As most land parcels in SCM (South Central Mumbai) are like redevelopment projects, tenant settlement is key to unlocking value. The redevelopment market is a big opportunity and we are optimistic about capturing a larger pie of the market share on account of our strong credibility, expertise, and track record. Q3FY24 was a strong quarter despite the inauspicious Shradh period in October 2023, wherein we have had pre-sales of 35,537 sq ft of area translating to a sales value of ~Rs 143 crore. Ground demand continues to remain robust on the back of strong affordability and consumer preference for Suraj. On a consolidated basis, from ongoing projects, the company has an unsold area with a good sales potential which will allow it to capitalize on the growing demand for high-quality residential real estate in one of the lucrative markets in Mumbai. Tenacious consumer desire to own a quality abode with superior set of amenities from a trusted developer continues to drive consolidation and we are optimistic of our growth going ahead.”