Sunteck Realty, a luxury residential developer in India, posted a net profit of INR 101.33 crore in Q4 FY24, reversing a loss of INR 27.93 crore in the same quarter last year. Revenue surged to INR 434.99 crore from INR 56.90 crore. The board recommended a final dividend of INR 1.50 per share. Sunteck plans to raise INR 2,250 crore through debt and equity, including INR 1,500 crore via private placements and INR 750 crore through new shares. They established two new subsidiaries and strengthened their joint venture with Piramal Enterprises. These strategic moves position Sunteck for continued success in the luxury residential market.
Sunteck Realty, a developer in India's luxury and ultra-luxury residential space, has reported a significant turnaround in their financial performance for the quarter ending March 31, 2024.
Sunteck recorded a net profit of INR 101.33 crore in Q4 FY24, a major improvement compared to the loss of INR 27.93 crore reported in the same quarter last year. This positive performance reflects a sharp increase in revenue, which jumped to INR 434.99 crore in Q4 FY24 from INR 56.90 crore in the previous year. The company's board of directors also recommended a final dividend of INR 1.50 per share for the financial year ending March 31, 2024, signifying confidence in their financial health.
Sunteck is looking to grow and has set ambitious plans to raise INR 2,250 crore. This capital will come from a mix of debt and equity. They plan to borrow up to INR 1,500 crore through private placements and raise INR 750 crore through issuing new shares. This new equity issuance could take various forms, including a sale to institutional investors (QIP), a follow-on public offering (FPO) where existing shareholders can buy more shares, or a preferential allotment where new shares are offered to specific investors. This significant capital raise will allow Sunteck to pursue new projects and capitalize on growth opportunities in the Indian real estate market.
Sunteck has also established two new wholly-owned subsidiaries, Sunteck YM Realty and Sundunes Real Estate, on January 19, 2024 and February 27, 2024 respectively. While the specific purposes of these subsidiaries are not yet clear, they may play a role in future development projects.
Furthermore, Sunteck is strengthening its position through a joint venture with Piramal Enterprises. Their joint venture company, Piramal Sunteck Realty (PSRPL), recently completed a buyback of 112,600 equity shares at a price of INR 1,110 per share. This strategic move could indicate increased investment and confidence in the future of the partnership.
Sunteck Realty's strong financial performance, expansion plans, and strategic initiatives position them well for continued success in the Indian luxury and ultra-luxury residential market.
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