Sunteck Realty Limited (NSE: SUNTECK) Q3 2025 Earnings Call dated Jan. 21, 2025
Corporate Participants:
Kamal Khetan — Chairman & Managing Director
Prashant Chaubey — Chief Financial Officer
Analysts:
Pritesh Sheth — Analyst
Biplab Debbarma — Analyst
Parvez Akhtar Qazi — Analyst
Vaibhav Saboo — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Sunteck Reality’s Earnings Conference Call for Q3 and nine months 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, this call will be for 30 minutes and for the duration of the conference call, all participant lines will be in the listen-only mode. This conference call is being recorded and the transcript for the same may be put up on the website of the company. After the management’s discussion, there will be an opportunity for you to ask questions. There will be a Q&A session and we request to restrict questions to two per participant. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone.
Now 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 — may not be based on historical information or facts and may be forward-looking statements, including those related to business statements, plans and strategies of the company, its future financial condition and growth prospect. These forward-looking statements are based on 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.
Kamal Khetan — Chairman & Managing Director
Thank you. A very good afternoon to everyone, and thank you for joining us today to participate in our company’s earnings conference call for the 3rd-quarter and nine months of the financial year FY ’25.
I would like to take you through the key developments in this period. We registered a strong pre-sales growth of 40% in our 3rd-quarter, surpassing our growth guidance of 30% 35%. We now stand at INR1,661 crores pre-sales for the Nine-Month FY ’25 are highest-ever so-far. The strong growth in pre-sales was driven by our Ubal segment, which comprises of our three BKC projects, namely Signature Island, Signia and Signapal and now Road project. We have strategized our portfolio to have higher sales contribution from the Uber luxury projects, which has a very-high EBITDA margin.
On the business development front, we have added Napancy Project 2, which brings an additional gross development value, GDV value of approximate INR2,400 crores. This addition boosts the total GDV of the Road project…
Operator
The line for the management has been disconnected. Please stay connected while we reconnect the line for the management.
Kamal Khetan — Chairman & Managing Director
Sorry, apologies for this technical snag. I think I will repeat once again. So from the strong growth in pre-sales was driven by our Luxury segment, which comprises of three BKC projects, namely Signature Island, Signia Isle and Signia Pearl and now an APNC Road project. We have strategized our portfolio to have higher sales contribution from the Uber luxury projects, which has a very-high embedded EBITDA margin.
On the business development front, we have added Project 2, which brings an additional gross development value to approximate INR2,400 crores. This addition boosts the total GDV of an APNC Road project to around INR5,400 crores, marking a significant milestone in our growth trajectory. The total GDV of as of nine months FY ’25 stands at INR40,225 crores, which has more than doubled in last two years. We are quite upbeat on our business development pipeline and you will see similar growth in times to come, which will be all — which all will be with higher EBITDA margins.
Our strong net operating cash flows surplus of approximately INR312 crores in nine months of FY ’25 has further strengthened our balance sheet with a net cash surplus of INR61 crores. We are now gearing up to launch a new phase-in City at ODC Goriga West. The total GDV of this phase is INR3,000 crores distributed over two towers. We are also preparing a lot — a launch for — in our new — one more new tower at Sky Park. We expect Q4 FY ’25 to be the best-ever quarter on pre-sales till-date for Sunteck, given our upcoming launches and strong pre-sales momentum.
Now I shall now hand over the call to Prashant Chaubey to take you through the financial performance of nine months FY ’25.
Prashant Chaubey — Chief Financial Officer
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 Q3 and nine months of FY ’25. The key details are as follows. We sold INR635 crores worth of area in-quarter three FY ’25, which is a 40% growth over quarter three of FY ’24. During the nine months FY ’25, pre-sales registered a growth of 34% with booking value of INR1,661 crores over INR1,237 crores for nine months FY ’24. Collections for quarter three FY ’25 stood at INR336 crores versus INR438 crores in-quarter three FY ’24. While for nine months FY ’25, collections stood at INR945 crores versus INR940 crores in nine months FY ’24.
The strong collections have resulted in a net operating cash-flow surplus of INR312 crores as of nine months FY ’25. Operating revenue grew by 281% year-on-year for three months ended December ’24 to INR162 crores in comparison to INR42 crores in the same-period in the last financial year, owing to recognition of revenues from Suntec World Projects and the BKC projects. EBITDA stood at INR48 crores in-quarter three FY ’25 versus a EBITDA loss of INR15 crores in the same-period last year. EBITDA margin stood at 30%. We reported net profit of INR43 crores of over quarter three FY ’24 net loss of INR10 crores.
For the nine months ended FY ’25, operating revenue grew by 369% to INR647 crores on a year-on-year basis. EBITDA stood at INR117 crores and we reported a net profit of INR99.9 crores. Our net-debt to equity stands at are in — our net-debt to — we are a net-debt zero company with a net cash surplus of INR61 crores.
And with this, we open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press Tar and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. In order to ensure that the management is able to address queries from all the participants in the question conference, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Thank you. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Our first question comes from Pritesh Sheth from Axis Capital. Please go ahead.
Pritesh Sheth
Yeah, thank you for the opportunity. Good evening, everyone. First, just to clarify, you mentioned that you know, this quarter’s Uber luxury sales was contributed by — some of the contribution came from Napiency Road project as well. Did I heard that correctly?
Kamal Khetan
Yeah. So it is — Pritesh, the Uber luxury sales come from both BKC and APLC Road project as well.
Pritesh Sheth
Okay. And if you can — can you give us some contribution how much it was just if you can.
Kamal Khetan
The total contribution from Uber luxury segment was close to INR422 crores.
Pritesh Sheth
Okay. Okay. Okay. And second on the GDV increase that I see for Naping Sea Road project versus the last disclosure, I think Q2 we mentioned that it’s around INR2,500 crores for this first Naping zero project, now it has increased to 26 35. Is it because of some area increase we are developing something higher or it’s purely because of some realization increase?
Kamal Khetan
No, so it’s due to the area increase. Now the area becomes — the total area from both an apency Road 1 and 2 becomes to close to 2,50,000 to 275,000. And that is how — and the total GDV becomes. By addition of another INR2,400 crore, the total GDV becomes INR5,400 crore.
Pritesh Sheth
Okay. Okay. Okay. And so congrats on one more project in APMC. Now overall, how do you look at the potential in APNC, do you see in future any more societies, etc being acquired by us for expanding our portfolio in APNC Road?
Kamal Khetan
So APNC Road, see, we are very clear that obviously, we are going to get do — we are very upbeat about our new acquisitions which are going on and which we are very clear at the same time, which will be at a very-high EBITDA margin. We’ll not be taking redevelopment just at very low margins even there is a competition. So we are only eyeing at those locations. And obviously, we all know that Uber luxury segment is the most — the best segment, which is doing the best. So the most of our incremental BD you will see in that segment and without compromising on EBITDA margins.
Pritesh Sheth
But any more potential you see there in?
Kamal Khetan
Yes, we see this potential to grow further.
Pritesh Sheth
Okay. Okay.
Kamal Khetan
We are looking at that for sure.
Pritesh Sheth
I have few more on follow-up, but I’ll join back the queue and take a later. Thank you.
Kamal Khetan
Thank you. Thank you, Pritesh.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press Tar and one on your touchstone phone. The next question comes from Biplab Debbarma from Antique Stock Broking. Please go ahead.
Biplab Debbarma
Good evening, sir. I got disconnected for — momentarily. I don’t know whether you have answered this. Just wanted to know, sir, since you have sold-in Napiency Road project, could you give us some insight about the projects in terms of what kind of products, ticket size and how many towers? And also in this quarter’s precise, what was the contribution of just Napi zero?
Kamal Khetan
Biplab, I want to very clearly say that we are looking this project to be one of the best high-end project of the country. This we want to — we have — we have decided to — we have conceptualized this project to be amongst the best-in the country and one of the large — and the largest in the high-profile micro-market. We are already seen witnessing a strong interest from all the and industries. And what we have done is we have right now given to the owners, we have committed and given the areas to the existing high-profile owners of the owners of the apartment what we have done right now.
Biplab Debbarma
So this is not pre-sales.
Kamal Khetan
This is a pre-sales. This is a pre-sales. We have taken also — accordingly, we have done the agreement and documentation. This is a part of the pre-sales.
Biplab Debbarma
Okay.
Kamal Khetan
So this is part of pre-sales.
Biplab Debbarma
Okay. And in terms of launches in the 4Q, we were — what would be the actual — I mean, you have two towers planning to launch in Oshiwara and in Miraud. I just wanted to understand in terms of actual GDV, what would be the launch pipeline in 4Q?
Kamal Khetan
So that’s why we are quite confident that’s why we said Q4 will be — I think you got disconnected. So Q4 — that’s what we are trying to say that our Q4 are expecting to be the best-ever quarter on pre-sales till the date for because of obviously the upcoming launches, which is one, we are looking at new phase launch at ODC, which is at Gorega West obviously. The GDV value of — that is INR3,000 crore, this will comprise of — that phase will comprise of two towers of which is INR3,000 crores and one tower which we are looking to do at Sunteck Beach Residences, SBR and one new tower at Sky Park at Mira and the one tower at Sunteck Beach residence is we are looking to — that to be at the GDV value of close to INR250 crores to INR300 crores and another tower which is at Sky Park at Mira Road GDV value is close to INR600 crores to INR700 crores.
Operator
Thank you. The line for the current participant has dropped from the queue. We’ll move on to the next question. The next question comes from Parvez from Nuvama Group. Please go-ahead.
Parvez Akhtar Qazi
Hi, congratulations, sir, for a great set of numbers and also the strong pipeline of launch in Q4. Sir, my question is with regards to FY ’26, I mean, you did mention that we’ll have three launches in Q4. But in FY ’26, what incremental new projects or phases can we see coming up for launches across our existing as well as pipeline projects. Thank you.
Kamal Khetan
So, Parvez, very frankly, you know, so we have all — what we talk about our growth engines. These are all large projects. So we don’t have to very frankly worry. If you see City, we are sitting on the large parcel of land. So definitely we’ll be launching if something new in ODC, again going on West in FY when we are talking about FY ’26. And when it comes to, obviously, we will be obviously launching one more phase. And when it comes to Skypark, we can look at launching at least one more tower there in — again in FY ’26.
So you’ll see all the launches across all the projects, which are larger projects and plus obviously, we will look at something new which we can launch. We can obviously look at launching a — from our existing other portfolios, which has not been launched, we can look at even that in queue over and above what we are looking. So we — we have — what guidance we have surpassed our guidance almost what we have committed for this year and we are quite confident that what is the — what are launches which are there for the next year, FY ’26, there also we are quite optimistic about having a similar or a better growth than this.
Parvez Akhtar Qazi
So can we target, let’s say, 25% 30% pre-sales growth in FY ’26 also?
Kamal Khetan
Yes, very easily. Yes, very easily and very confident about it.
Parvez Akhtar Qazi
Sure, sir. Second question is with regards to our under-construction annuity project at ODC. So when do we see that getting completed?
Kamal Khetan
So what we are talking about us to start that project is after our launch of — very soon the launch of this for fifth Avenue, which we are launching in ODC and we are looking to complete that project the commercial project in FY ’27, ’28 — ’28, ’28. FY.
Parvez Akhtar Qazi
Thanks and all the best.
Operator
Thank you. The next question comes from Vaibhav Saboo from Nippon AIF. Please go-ahead.
Vaibhav Saboo
Yeah, hi. Thanks for giving me the opportunity and congrats to the team on a good quarter. Sir, just a couple of things. So wanted to understand in terms of your approvals for the launches that you have mentioned, how are we…
Kamal Khetan
Vaibhav, can I interrupt? Just can you start? Initially you were not sounding properly. I was not able to hear you. Can you start the question once again?
Vaibhav Saboo
Yes, sure. So in terms of the projects that you have mentioned for the launches, which we are going to do in Q4, how far are we in the terms of approvals?
Kamal Khetan
Obviously, when we are talking about, Vaibhav, any project, which is we are looking to launch in this quarter — current quarter, we are obviously at a very advanced-stage and we are — that’s why we are very confident even if we are talking about three to four launches and even if we were confident that even if we skip one due to some approval problems or something, we are confident that our targets will be easily surpassed than what it is.
Vaibhav Saboo
Okay. And sir, just one more thing. In City ODC, it around what would be the area which we would be launching.
Kamal Khetan
So in one tower, we’ll be close to point — we will be close to-4 lakh to 5 lakh square feet.
Vaibhav Saboo
Okay. So the total would be around, let’s say 0.9 to-1 million square feet.
Kamal Khetan
0.8 to-1 million square feet-in both the towers put together.
Vaibhav Saboo
Understood.
Kamal Khetan
We’ll be looking to launch one tower right now immediately in Q4.
Vaibhav Saboo
Okay. And for — okay. And just for the FY ’26 pipeline, can we expect that Dubai project to come in for FY ’26?
Kamal Khetan
Whatever projects which are new projects which are there in queue, so we can — we’re definitely very optimistic like we committed about the road and we are well in time, we can see that we are trying to get that in-line. Similarly, we are looking at Dubai also to launch in FY ’26.
Vaibhav Saboo
Understood. And sir, just one last thing if I could squeeze in…
Kamal Khetan
Just to make you aware, we also have Bandra, we also have Borivali and we also have one or two more new projects which are there in our portfolio. So at least we are confident even if we launch two or three out of them, we will easily achieve our against growth targets what we are achieved, but targeting at close to 30% plus increased sales.
Vaibhav Saboo
Understood. And sir, just one last if I could squeeze in. Just on the launch strategy, so we would be launching the C — an APMC project to only post complete pulled out of an APMC Project 1 or whether this would come in at a later-stage, even let’s say, when we have some inventory in project ones?
Kamal Khetan
Vaibhav, it will be very hard to explain you what are our plans on the call. I think we can discuss this offline, but definitely we will — this is part of first launch only. When we are talking, C II, that is part of the same-tower and same launch.
Vaibhav Saboo
Understood. Sure, sir. Thank you and all the best.
Kamal Khetan
Thank you. Thank you, Vaibhav.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one on your touchstone phone. We have the next follow-up question coming from the line of Pritesh Sheth from Axis Capital. Please go-ahead.
Pritesh Sheth
Thanks for the follow-up. Just one question on collections. No, it’s still lagging the pre-sales. But I think given — given we are about to deliver avenue 4, how do you expect this collection trajectory moving forward? And what could be the key triggers for this collection to scale-up from here on.
Prashant Chaubey
Pritesh, Prashant this side. So as you are — as you know, collections are milestone driven. On completion of City 4th Avenue at ODC Gorega West plus initiation of construction at Sky Park Mira Road, you will see collections jumping in the current — in the coming quarters. Moreover, with further progress in-construction at Beach Residences Vasai and Christian Park at Kalyan, you will see a growth in collections. Thank you.
Pritesh Sheth
Got it. And these triggers are like — will happen in next one or two quarters or some of them will probably take little longer?
Prashant Chaubey
Whatever we are talking about, it will happen in the near-term quarters as well and it will sustain because construction will keep on moving up at a fast pace.
Pritesh Sheth
Got it. Got it. Fair enough. Thank you. That’s it from my side. All the best.
Kamal Khetan
So, Pritesh, just to reiterate, so Q4 you will see Q4 and Q1 of FY ’26, definitely you will see the bid jump coming from the — giving the possessions of fourth Avenue and plus then there will be follow-up other projects are position. So this will be sustained basically. That’s what we are trying to see.
Pritesh Sheth
Sure, sure. That’s very helpful, sir. Thank you.
Operator
Thank you. Ladies and gentlemen, we would take that as our last question for today. I would now like to hand the conference over to the Chairman and Managing Director, Mr. Khetan, for closing comments.
Kamal Khetan
Thank you 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 strengthen this relationship. And thank you once again. Thank you. Thanks everyone. Thank you, everyone.
Operator
Thank you. Thank you for taking out the time for Sunteck’s earnings conference call. You may now disconnect.