PremiumMumbai-based Sunteck Realty Ltd reported decent earnings in the March quarter. Its pre-sales grew 6% sequentially to ₹371crore in Q4FY21 and collections grew 27% to Rs321 crore - the highest ever in a quarter. On a year-on-year basis, collections improved 83% on a low base. The management said collection efficiency was strong at nearly 76%.
This helped company generate strong operating cash flow of Rs286 crore in FY21. Sunteck utilised this money to repay debt and its key debt metic--net debt to equity ratio--strengthened to 0.18 times in FY21 from 0.24 times in FY20. According to the management it is among the top quartile of the industry in terms of leverage levels.
Among its projects, the company saw improved demand for its mid-income ODC project, which was 54% of the total booking seen in 4QFY21. It should be noted that this is the highest ever bookings in a quarter in ODC project.
Going ahead, the management expects aggressive project acquisitions done in FY21 to strengthen cash flows and balance sheet. The company has three new project acquisitions under the asset-light strategy, totalling approximately 8 million square feet at Vasai, Vasind, and Borivali.
Moreover, the company's management has approved a fund raising plan of up to Rs2,500 crore.
Meanwhile, shares of the company fell nearly 4% on the National Stock Exchange in early deals on Wednesday. Analysts say while the company has managed to sail through FY21, the near-term outlook, especially for the its luxury segment remains bleak given impact of the second wave of the pandemic on the economy. Also, Maharashtra based developers saw bumper sales in the second half of FY21 benefitting from the temporary stamp duty collections by the state government. With that concession out of the way, sales trajectory will be a key parameter to watch out for, analysts said.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!