Suraj Estate Developers Limited has posted strong financial results for Q1FY25, with total income rising to INR 134.6 Crores, a 30.9% increase year-over-year. EBITDA reached INR 64.2 Crores, up 36.3% from last year, while PAT more than doubled to INR 30.1 Crores, reflecting strong profitability. The company reduced net debt from INR 572 Crores to INR 352 Crores, improving financial stability. Pre-sales grew by 5.2%, driven by increased luxury unit sales. With plans for a new INR 475 Crores commercial project and a solid FY25 pre-sales target, Suraj Estate is poised for continued growth.
Suraj Estate Developers Limited has recently published its financial results for the first quarter of the fiscal year 2025, showcasing significant growth metrics that highlight the company's strengthening position in the real estate market. The total income for Q1FY25 rose to INR 134.6 Crores, marking a 30.9% increase year-over-year and a 30.7% increase quarter-over-quarter. This surge is a positive indicator of the company's operational efficiency and market demand.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also showed impressive growth, reaching INR 64.2 Crores in Q1FY25, up 36.3% from INR 47.1 Crores in Q1FY24 and up 14.4% from INR 56.2 Crores in the previous quarter. Such growth is attributed to a favourable sales mix and operating leverage. The EBITDA margin has expanded, driven by increased luxury project sales, enhancing the overall profitability of the company. Furthermore, Profit After Tax (PAT) more than doubled compared to the same period last year, surging by 107% to INR 30.1 Crores, compared to INR 15 Crores in Q1FY24.
A notable aspect of Suraj Estate's performance is the reduction in net debt. As of June 2024, the company's net debt stands at INR 352 Crores, significantly lower than INR 572 Crores a year ago. This reflects strategic financial management and debt reduction initiatives, including the repayment of high-cost Non-Convertible Debentures (NCDs) amounting to INR 192 Crores, with all outstanding dues now fully settled. These moves are expected to decrease the company's interest costs, allowing more resources to be redirected towards future projects and investment opportunities.
The company reported pre-sales of INR 140 Crores for Q1FY25, a 5.2% year-over-year growth. This increase was driven primarily by a 13% rise in realisations from luxury unit sales, offset slightly by a 7% decline in sales volume. Currently, 63.6% of the revenue is generated from luxury units, while 36.4% comes from value-luxury units. This sales trend indicates a strong market preference for higher-end projects, which could guide the company in its future project developments.
Looking ahead, Suraj Estate's plans include the upcoming launch of a substantial commercial project in Mahim, with a potential gross development value (GDV) of approximately INR 475 Crores. Additionally, the company has received necessary approvals to proceed with this development, which is expected to enhance its revenue stream significantly. The ongoing residential projects are anticipated to contribute around INR 650 Crores to the pre-sales target of INR 850 Crores set for FY25.
Overall, Suraj Estate Developers Limited appears to be on a promising path, supported by strong financial results, effective debt management, and an expanding portfolio of luxury projects. The company's focus on quality developments in desirable locations, combined with strategic financial decisions, positions it well for continued growth in the competitive real estate market.
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