Suraj Estate Developers Reports 30.9% YoY Income Growth in Q1 FY25

On August 2, 2024, Suraj Estate Developers Limited announced its financial results for the quarter ended June 2024.

Q1 FY25 Performance Highlights

• The company’s total income increased by 30.9% year-on-year (YoY) and 30.7% quarter-on-quarter (QoQ), rising from ₹102.8 crore in Q1 FY24 and ₹103 crore in Q4 FY24 to ₹134.6 crore in Q1 FY25.
• EBITDA for Q1 FY25 grew by 36.3% YoY and 14.4% QoQ, from ₹47.1 crore in Q1 FY24 and ₹56.2 crore in Q4 FY24 to ₹64.2 crore in Q1 FY25.
• The EBITDA margin expanded YoY due to operating leverage benefits and an improved sales mix, contributing to growth in both EBITDA and PAT.
• PAT for the quarter surged by 107% YoY and 54.8% QoQ, reaching ₹30.1 crore, compared to ₹15 crore in Q1 FY24 and ₹19.5 crore in Q4 FY24.
• As of June 2024, the company’s net debt stood at ₹352 crore, down from ₹572 crore in June 2023, but slightly higher than ₹315 crore in March 2024.

Q1 FY25 Business Updates

• In Q1 FY25, the company’s wholly-owned subsidiary, Iconic Property Developers Private Limited, received building plan approval and a commencement certificate for a proposed commercial project in Mahim (West), with a saleable carpet area of 1.06 lakh sq. ft. and an estimated Gross Development Value (GDV) of approximately ₹475 crore.
• A legal dispute with Dadar Sai Kirti CHS Limited was resolved, allowing for the construction of two proposed buildings on the property, with a sale potential of 74,000 sq. ft. and an estimated GDV of ₹350 crore.
• During the quarter, the company finalised a definitive agreement for the sale of additional areas (7th, 8th, and part of the 9th floors) to be constructed over the existing CCIL Bhavan building. The sale, covering approximately 22,410 square feet of carpet area, has an estimated GDV of around ₹90 crore. Construction and receivables are expected to be completed and collected over the next 12-15 months.
• The company is on track to achieve its pre-sales target of ₹850 crore in FY25, with ₹650 crore expected from its ongoing and upcoming residential portfolio, and the remaining ₹200 crore anticipated from the launch of the proposed commercial project in Mahim (West).

Speaking of the financial performance, the Whole-time Director of Suraj Estate Developers,

Mr Rahul Thomas, said, “We are extremely pleased with our operational performance for the quarter. We recorded a pre-sales value of ₹140 crore, which was a 5.2% increase Y-o-Y. Realisations for the quarter were up 13%. We continue to focus on luxury and value luxury projects. For Q1FY25, we had a robust revenue growth of 31% on a y-o-y basis. PAT for the quarter stood at ₹30 crore, which was a strong 107% growth y-o-y. These results align with our internal targets and expectations, reflecting our strategic efforts. We are consciously optimising our cost of debt by refinancing high-cost debt during the quarter and repaying NCDs, resulting in an average cost of debt of 13-13.5% going forward.”

He further added, “We remain steadfast in our focus on the micro-market segment. Our total project pipeline currently encompasses 9.01 lakh square feet. This quarter, we settled another litigation with Dadar Sai Kirti CHS Limited, which will yield a sales potential of 74,000 sq ft and has an estimated GDV of ₹350 crore. Our commitment to the real estate sector remains unwavering. We continue to leverage our market expertise to identify and capitalise on emerging opportunities. Our robust project pipeline and consistent financial performance underscore our capability to deliver value to our stakeholders.”

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