Sunteck Realty's consolidated net profit tanked 49.8% to Rs 13.88 crore on 8.4% increase in net sales to Rs 142.75 crore in Q2 September 2020 over Q2 September 2019.
On a consolidated basis, profit before tax (PBT) dropped 52.6% to Rs 15.27 crore in Q2 September 2020 as against Rs 32.23 crore in Q2 September 2019. Current tax expense for the quarter dropped 33.4% to Rs 4.76 crore as against Rs 7.15 crore in Q2 September 2019. The Q2 result was declared post trading hours on Friday, 13 November 2020.
EBITDA tumbled 32% to Rs 31 crore in Q2 September 2020 as compared to Rs 45 crore in Q2 September 2019. Operating margin stood at 22% in Q2 FY21 as compared to 34% in Q2 FY20. Net profit margin was at 10% in Q2 FY21 as against 21% in Q2 FY20.
Pre-sales (new bookings) soared 96% to Rs 200 crore in Q2 September 2020 from Rs 102 crore in Q2 September 2019. Collections skid 24% to Rs 141 crore in Q2 FY21 over Rs 185 crore in Q2 FY20.
In the current COVID-19 impacted environment, Sunteck Realty has decided to adopt project completion method for revenue recognition in line with the larger industry practice. While cash flow continues to remain strong, only the recognition of profits has been pushed to future years, the company said. During the lockdown, Sunteck Realty had launched its online digital sales platform, 'SunteckAER' which received a very favourable response and as a result, the company achieved significant new bookings, especially in the ready-to-move in category.
Commenting on the Q2 FY21 performance, Kamal Khetan, the chairman and managing director (MD) of Sunteck Realty, said that: "Post-lockdown, our pre-sales momentum has picked up. A combination of favorable factors such as the reduced stamp duty and low interest rates is expediting the home-purchase decision time cycle for prospective customers. We are observing a trend of increased demand for some of our ready-to-move-in projects - case in point are the pre-sales we were able to achieve in Signia High, Borivali in the quarter gone by."
"By and large, there is a renewed interest for high quality products offered by large organized developers, especially those with strong balance sheet and high brand recall. Post-COVID, we are already witnessing strong consolidation across the industry. Given our balance sheet strength and established track record, we are well positioned to be one of the biggest beneficiaries. We intend to capitalize on the opportunity at hand, setting the stage for further sustainable growth and attractive ROEs - similar to our recent acquisitions of Vasai and Vasind," he added.
Shares of Sunteck Realty were down 0.41% to Rs 266 on BSE. The Indian stock market was shut yesterday, 16 November 2020 on account of Diwali Balipratipada.
Sunteck Realty is a Mumbai-based luxury real estate development company. It focuses on a city centric development portfolio of about 35 million square feet spread across 26 projects.
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