Sunteck Realty jumps after strong operational performance in Q2

Sunteck Realty rose 2.87% to Rs 269.20 after the realty firm said that its pre-sales soared 96% to Rs 200 crore in Q2 September 2020 as against Rs 102 crore in Q2 September 2019.

Pre-sales jumped 98% in Q2 September 2020 from Rs 101 crore in Q1 June 2020. Collections dropped 24% to Rs 141 crore in Q2 September 2020 as against Rs 185 crore in Q2 September 2019. However, it surged 117% from Rs 65 crore in Q1 June 2020.

Following the resumption of operations post the lockdown in Mumbai, Sunteck Realty continued its sales momentum as well as various other marketing initiatives for the ready-to-move-in and nearing-ready inventory. As the construction activity inched towards pre-COVID levels, the company remains focused on accelerating the progress across the portfolio to offset the time lost on account of the ongoing pandemic.

Kamal Khetan, chairman and managing director (MD) of Sunteck Realty, stated: "Certainly, the momentum has picked up. A combination of favorable factors such as the reduced stamp duty and low interest rates is expediting the decision time cycle for prospective customers. We are observing a trend of enhanced interest and increased demand for some of our ready-to-move-in projects such as Signia High, Borivali, and 1st Avenue, Sunteck City, Oshiwara District Centre, Goregaon (W). 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."

"While our strong pre-sales in FY2020 would ensure higher collections in FY21, now, with the home loans getting disbursed again, we are confident that our collections will grow much stronger from hereon," he added.

Shares of Sunteck Realty have rallied 85.65% from the 52-week low of Rs 145 hit on 27 May 2020.

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. Its consolidated net profit slumped 91.6% to Rs 3.06 crore on a 65.2% drop in net sales to Rs 60.72 crore in Q1 June 2020 over Q1 June 2019.

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