Sunteck Realty Ltd’s operating revenue for Q3FY14 grew by 140.8% yoy to Rs201.5cr as against Rs83.69cr in Q3FY17, missing the consensus estimate of Rs219cr. The company’s EBITDA margin has increased by 332bps yoy to 44.2% as against 40.9%. The EBITDA grew by 160.4% yoy to Rs89.07cr as against Rs34.20cr, beating the consensus estimate of Rs79.26cr. The company’s PAT before share of associates and joint ventures grew by 140.4% yoy to Rs59.19cr as against Rs24.62cr. The company’s net profit after minority interest and share of associates grew by 170.1% yoy to Rs55.66cr, beating the consensus estimate of Rs47.1cr.
The increase in EBITDA margin was led by expansion in gross margin by 379bps to 50.8% yoy to Rs102.29cr.
The growth in top-line and expansion in operating margin boosted the growth in bottom-line.
Pre-sales bookings declined by 18% yoy to Rs104cr and collections declined by 30% yoy to Rs100.6cr.
According to the management, the improvement in market sentiments with a traction in the BKC projects has led to strong growth in top-line and improvement in margins. Oshiwara District Centre (ODC), Sunteck City continues to see significant improvement in infrastructure and this zone is poised to create huge value for its stakeholders, just like BKC. The real estate sector in India is undergoing consolidation, which should help organized developers like Sunteck to gain significant market share, while maintaining attractive returns profile. The company has the balance sheet strength to look at distressed opportunities in the market.
The company expects to launch the affordable housing project in next 3-6 months under joint development model. The phase I of the project will have area of 1.5mn sq.ft, which will be developed in 2-3 years. The project is expected to generate sales of Rs750cr.
The unsold inventory in BKC project is Rs2,300cr. Out of the total 220 units the company has sold 166units.
The unsold inventory in ODC project is Rs950cr. Out of the total 1,000 units the company has sold 510 units.
Sunteck Realty Ltd is currently trading at Rs416.45, up by 17.6 points or 4.41% from its previous closing of Rs398.85 on the BSE.
The scrip opened at Rs408.75 and has touched a high and low of Rs424.80 and Rs402.55 respectively. So far 4,56,958(NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.
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