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Sunteck Realty gains after strong response at Naigaon project

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Sunteck Realty rose 1.19% to Rs 394 after the company said its 2,000-apartments project in Naigaon generated sales worth about Rs 600 crore in less than two weeks from the launch day.

Sunteck Realty recently launched 2000 apartments approximately, in its phase two named Sunteck MaxXWorld at Naigaon. It has sold more than 1600 apartments generating sales worth Rs 600 crore approximately, in less than two weeks from the launch day. The company is confident to maintain this strong sales traction in multiple upcoming launches coming soon.

Sunteck MaxXWorld comprises of 15 acres out of the total 150 acres-one of the largest township in the western suburbs. This mixed-use township consists a proper mix of aspirational luxury residences, entertainment and retail. The retail has high street, luxury mall with entertainment zones, multiplex, fine dining restaurants and food courts. The project has enhanced standards for luxury with lifestyle clubhouse and more than 50 facilties/amenities.

Kamal Khetan, chairman and managing director, Sunteck Realty said: "We are extremely overwhelmed and humbled with the confidence shown by the buyers in our brand. We at Sunteck are committed to provide our customers' timely delivery and the best quality. Our continued effort is to strive for excellence and give finest luxury residences in every segment we cater to."

Sunteck Realty announced Q3 earnings after market hours yesterday, 12 February. It reported 24.7% decline in consolidated net profit to Rs 33.02 crore on a 0.6% fall in net sales to Rs 193.92 crore in Q3 December 2019 over Q3 December 2018.

Profit before tax or PBT stood at Rs 43.40 crore in Q3 FY20, up by 43.40% from Rs 77.87 crore in Q3 FY19. EBITDA slumped 41% to Rs 502 crore in Q3 FY20 from Rs 852 crore in Q3 FY19. EBITDA stood at 26% in Q3 FY20 as compared to 44% in the same period last year.

Commenting on the Q3 FY2020 performance, Kamal Khetan said: "Aggressive sales strategy coupled with new project launches has led to success across our sub-brands, especially 4th Avenue at Sunteck City, ODC enabling us to triple our pre-sales sequentially to Rs 325 crore in Q3FY20. In addition, we have been focused on augmenting our construction execution across board, which has further complemented our sales momentum. This strong sales traction is likely to continue in the upcoming quarters.

This has reiterated our confidence that ongoing reforms in the real estate sector are setting the stage for sustainable growth of organized developers such as Sunteck Realty.

Our balance sheet strength and prudent cash flow management gives us an edge to acquire projects across pricing spectrums, including distressed opportunities to scale up our business while maintaining attractive RoEs."

Sunteck Realty (SRL) is a luxury real estate development company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 13 2020. 11:55 IST