Sunteck Realty Ltd's Q2FY19 consolidated net profit declines 14.94% yoy to Rs54.66cr: Misses Estimates

The company’s consolidated revenue in the period stood at Rs180.31cr, down 48% yoy and 14.58% qoq.

Nov 13, 2018 12:11 IST India Infoline Research Team

Sunteck Realty Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 180.31 [48]
EBITDA 78.01 [21.4]
EBITDA Margin (%) 43.3 1,463
Net Profit (adjusted) 54.66 [14.9]
***EBITDA margin change is bps
Sunteck Realty Ltd’s Q2FY19 numbers were below the consensus estimates. Consolidated revenue of the company declined 48% yoy to Rs180.3cr in Q2FY19 vs. Rs346.7cr in Q2FY18, missing the estimates by 5.8%. Operating profit for the quarter declined 21.4% yoy to Rs78cr as compared to Rs99.3cr for the same quarter last year, 21.7% lower than the estimates. However, the operating margin increased to 43.3% in Q2FY19 from 28.6% in Q2FY18. Profit after tax witnessed a fall of 14.9% yoy to Rs54.7cr in Q2FY19, missing the estimates by 4.5%.
  • Operating margin witnessed a sharp rise on the back of lower operating expenses (down 65.1% yoy to Rs85.5cr).
  • Net profit fell owing to sharp decline in top-line, coupled with jump in other expenses (up 26 times yoy to Rs12.8cr) and tax expenses (up 35.2% yoy to Rs30.5cr).
  • Other income jumped four-fold yoy to Rs17.2cr for the quarter under review. 
  • Sunteck Realty, during Q2FY19, launched an aspirational luxury project called ‘Sunteck West World’ at Naigaon (near Mumbai). The company sold 1,015 units with total sales turnover of Rs317cr at the end of September 30, 2018. The project has a potential development of 100 acres.
  • Total value of new bookings done during the September quarter was Rs421.1cr, while collection from these bookings was Rs140.4cr.
  • Net debt at the close of H1FY19 was Rs459.1cr, almost unchanged from Rs453.6cr at the end of financial year 2018. Net debt-to-equity ratio stood at 0.17 at the end of same period.
  • Cash & Bank balance was Rs97.9cr at end of the September quarter.

Technical View:

Sunteck Realty Ltd ended at Rs324.15, down 11.2 points, or 3.34%, from its previous close of Rs335.35 on the BSE. The scrip opened at Rs335 and has touched a high and low of Rs335 and Rs320.05, respectively. A total of 1,66,505 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200-DMA.

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