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Suraj Estate Developers posts 88% YoY rise in Q2 PAT

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Last Updated : Nov 15 2024 | 4:50 PM IST

Suraj Estate Developers has reported 88.1% jump in consolidated net profit to Rs 31.8 crore in Q2 FY25 from Rs 16.9 crore posted in Q2 FY24.

Total income rose by 5.7% year-over-year (YoY) to Rs 109.6 crore in the second quarter.

EBITDA improved by 1% to Rs 64 crore in Q2 FY25 over Q2 FY24. EBITDA margin expanded to 58.4% in Q2 FY25 as compared with 61.1% in Q2 FY24.

The companys pre-sales grew by 26% YoY in Q2 FY25 and by 13% in H1FY25 despite a seasonally weak quarter. Realizations grew 10% YoY in Q2 FY25 and 12% YoY in H1 FY25 on account of price hikes and better product mix.

Collections grew 89% YoY in Q2 FY25 and 46% YoY in H1 FY25 on account of increased sales and collection from commercial project CCIL. 40.9% of revenue came from sales of luxury units and 59.1% of revenue was from sales of value luxury units for Q2 FY25.

The company has set FY25 pre-sales guidance at Rs 850 crore, comprising Rs 650 crore from residential and Rs 200 crore from commercial segments.

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In October 2024, the company issued 34,12,277 equity shares at Rs. 714 per share, raising Rs 243.64 crore. Additionally, the board approved the allotment of 13,30,000 fully convertible warrants at Rs 750 per warrant, totalling Rs. 99.75 crore, securing an aggregate sum of Rs 343 crore.

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 year-over-year 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.

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.

Suraj Estate Developers has been involved in the real estate business since 1986 and the company develops real estate across the residential and commercial sectors in South Central Mumbai region. The company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market.

The scrip fell 2.89% to end at Rs 575.50 on the BSE yesterday.

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First Published: Nov 15 2024 | 4:44 PM IST

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