Ladies and gentlemen, good day and welcome to the Sunteck Realty's earnings conference call for Q2 and H1FY25. We have with us today Mr. Kamal Khetan, the Chairman and Managing Director of the company, Mr. Prashant Chaubey, the Chief Financial Officer, and Mr. Abhishek Shukla, the Vice President of Strategy and Investor Relations. Please note, this call will be for 30 minutes, and for the duration of the conference call, all participants' lines will be in the listen-only mode. This conference call is being recorded, and the transcript for the same may be put up on the website of the company. After the management discussion, there will be an opportunity for you to ask questions. There will be a Q&A session, and we request to restrict questions to two per participant.
Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Before I hand the conference over to the management, I would like to remind you that certain statements made during the course of this call may not be based on historical information or facts and may be forward-looking statements, including those related to business statements, plans and strategies of the company, its future financial condition, and growth prospect. These forward-looking statements are based on expectations and projections and may involve a number of risks and uncertainties and other factors that could cause actual results, opportunities, and growth potential to differ materially from those suggested by such statements. I would like to turn the conference over to Mr. Khetan, the Chairman and Managing Director of the company. Thank you, and over to you, sir.
Very good afternoon to everyone, and thank you for joining us today to participate in our company's earnings conference call for the second quarter and first half of the financial year, FY25. I would like to take you through the key developments in this period. We had a strong second quarter and first half of financial year '25. We have registered a growth of 33% and 31% in pre-sales, respectively, during this period. Our consistently strong sales at our BKC projects have added to the sales momentum. Better pre-sales have been reflected in higher collections. This has enabled doubling our net operating cash flow surplus to ₹191 crores in the first half of financial year '25. Further strengthening our balance sheet, our net cash surplus now stands at nearly ₹100 crores. At Sunteck City Fourth Avenue project at ODC Goregaon West, it's nearing completion.
This will further boost our cash flows in the coming quarters. We have launched one more new phase at our Naigaon project with the name Sunteck Ultra World and with a potential GDV of INR 600 crore, and the response for that was very overwhelming. We are also geared up to launch one tower in the new phase at Sunteck City ODC Goregaon West, which has a potential GDV value of approximately INR 1,500 crore. We are excited and keenly awaiting the launch of one of our biggest and the most luxurious projects in the country, which is on the sea at Nepean Sea Road. At the same time, we are preparing ourselves for getting the necessary approvals for our Downtown Dubai project and our Seaview project at Bandra Bandstand. We are excited about our growth opportunities in the MMR market.
With our strong balance sheet and robust operating cash flows, we continue to remain aggressive and prudent in our business development. While we are evaluating many projects aggressively, we continue to focus on our high equity multiple philosophy. Now, last but not the least, on the sustainability front, I'm pleased to share that Sunteck Realty has been conferred the prestigious Sector Leader Award in the 2024 GRESB Real Estate Assessment for the development benchmark. I shall now hand over the call to Prashant Chaubey, the CFO, to take you through the financial performance of H1FY25.
Thank you, sir. Good afternoon, everyone. I trust you have had the opportunity to go through our latest results and the investor presentation, which are published on our company website and the stock exchanges. I would like to take this opportunity to share a brief update on the financial and operational performance of Q2 and the first half of FY25. The key details are: we sold INR 524 crores worth of area in Q2 FY25, which is a 32.7% growth over Q2 of FY24. During the first half of FY25, pre-sales registered a growth of 31.2% over H1 of FY24. Collections for Q2 FY25 stood at INR 267 crores, which is a 24.8% growth over Q2 of FY24, while for the first half, FY25 collections stood at INR 609 crores, a growth of 21.3%.
The strong collections have resulted in a net operating cash flow surplus of ₹191 crores, which is a 112% growth over H1 of FY24. Operating revenue grew by 578% year-on-year for the three months ended September 2024 to ₹169 crores in comparison to ₹25 crores in the same period in the last financial year, owing to recognition of revenues from our completed Sunteck MaxXWorld project in Naigaon. EBITDA stood at ₹37 crores, and EBITDA margin stood at 22%. Net profit stood at ₹35 crores, with a net profit margin of 20%. For the half-year ended FY25, operating revenue grew by 408% to ₹485 crores, and EBITDA stood at ₹69 crores for H1 of FY25. We reported a net profit of ₹57 crores for the half-year ended September 2024. Our net debt to equity stood at minus 0.03x, with a net cash surplus of ₹98 crores during H1 of FY25.
Thank you. With this, we open the floor for questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. In order to ensure that the management is able to address questions from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. We have the first question from the line of Biplab Debbarma from Antique Stock Broking.
Good afternoon, sir. Season's greetings to you. So my first question is on the launches in the second half of FY25. So you have launched Naigaon. Congratulations on that, that it has received good response. And you are gearing for launch a new tower in Sunteck City. Besides these two projects, are there any launches expected in the second half of FY25?
Yeah. Biplab, Season's, greetings to you as well, and so as you know, we have already launched our new phase in Naigaon, which is Sunteck Ultra World. And now we are going to launch in this coming next half of the financial year, H2. We are looking to launch at least one tower in the new phase, which is Fifth Avenue in ODC Goregaon West. We are looking to launch one or maybe two towers in fact Sunteck Beach Residences at Vasai. And we are looking to launch one more new tower in Sunteck Sky Park at Mira Road, and one or two towers in Sunteck Crescent Park at Kalyan, so these are the launches which we are looking in H2 of the coming financial year.
What would be the GDV of these projects?
So for the one tower of Fifth Avenue, GDV will be close to ₹1,500 crore. Two towers of Sunteck Beach Residences will be ₹400-₹500 crore. And one tower in Sunteck Sky Park, Mira Road, will be close to ₹600-₹700 crore. And two towers at Sunteck Crescent Park will be close to ₹300 crore.
My second question is on the projects that you have mentioned, sir, Nepean Sea Road and the Dubai project. By when do you think it would be launch ready, Nepean Sea Road and Dubai projects? FY26, can you be certain that by FY26, these two projects would be launch ready?
So yeah, good question, Biplab. We are very, very confident that before FY26, we will be able to launch both these projects, both Nepean Sea Road and Dubai. And this quarter, we have also added our new project in Bandra West, which we have acquired one or two quarters back, which we have already announced in the market. And we only put any new project in GDV value when we are confident that we will be able to launch in the next 12 to 15 months. So we are very, very confident that all these three projects, which are newly added in the GDV value, which is Nepean Sea Road, Dubai, and the Bandra West project, all three projects will be launched in FY26, before the end of FY26.
That's great, sir. Thank you, sir.
Thank you, Biplab.
Thank you. Ladies and gentlemen, if you wish to ask questions, you may please press star and one. We have the next question from the line of Abhinav Sinha from Jefferies India. Please go ahead.
Hi. So congratulations on the strong performance that we have seen in the first half. So now sales have started growing faster versus the previous couple of years. And you are also highlighting the large launch pipeline with Nepean Sea Road and Dubai and Bandra in the next 12-15 months. So my question is that what is the GDV value we are looking at, say, medium term or three years down the line? So that's the first question. And secondly, also, I wanted to hear your take on the Mumbai projects, Mumbai market in general, on pricing particularly.
So, Abhinav, good afternoon, Abhinav, so GDV value for the, we are very confident. If you see the growth of our GDV value, we have been able to double our GDV value in spite of growing sales less than three years, every three years, and we continue to mention in our past calls also and current calls also that we will continue to grow our GDV value also aggressively and continue to maintain our strong balance sheet. For the next few years, we'll continue to grow. In three years, we'll double the GDV value. We'll continue to double our GDV value, so that is where we are on the GDV value, and the second question was.
Mumbai market price.
Mumbai market, I think, is obviously we are seeing a very robust market. Pricing has only firmed up. We believe that now the pricing, we are not considering any increasing pricing, at least at any of our projects. We are very clear that pricing is quite appreciated in the last few quarters. We want to be seeing stable pricing and increasing the momentum by selling more volumes.
Right. So where would you have launched the Ultra World project? At what price point?
It's in Naigaon.
Yeah. But what is the price point here?
Naigaon, as you know, the price point is close to INR 10,000 sq ft, and we have launched it at that same pricing, INR 10,000 sq ft.
Okay. Thank you.
Thank you. Thank you.
Thank you. We have the next question from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. So, two questions. First, on Dubai, what would be your strategy in terms of launch there? It's a ₹10,000 crore worth of project. But how would you go about the launches? Whether you'll be able to I mean, you'll go tower by tower there with and what kind of GDV launch can we expect there? And second question is on the collections. This quarter, while sales in our luxury project was good, we have maintained that momentum, but I think collection was just ₹1.5 crores or ₹14 crores, rather. So those are two questions.
Pritesh, hi, Prashant here. I'll answer the second question first. As far as the collections goes, if you look in the first half, we have done luxury sales of close to INR 271 crores, and we have collected INR 128 crores. Going forward, you will see as we give possession in BKC, this collection will come up in the coming quarters. That is how it is. As possession is still pending, that's why the collection is slightly lower. You will see that recovering in the coming quarters.
Sure. The first question on Dubai strategy?
Kamal, Pritesh.
Right.
So what we are telling Dubai, there will be only two towers. It is not that there are multiple towers. So just to give you an idea, our Dubai project is in the Burj Khalifa location, which is the heart of downtown, which is very near to, or almost, I can say, adjacent to the Dubai Mall. So it is a high ticket price and high ticket size inventory. So it is not the volume. So we are looking at a sale of almost close to one million sq ft of the sale area, which will come in two towers. We may launch one tower at a time. And we are looking to exhaust this inventory in, let's say, two to three years or three to four years maximum. That's how we see Dubai projects in terms of sales launch and all.
Three to four years for a full project or one tower?
We are talking about both the towers in three-to-four years.
Okay. Okay. Awesome. And just lastly on Naigaon, generally, we have very good response whenever we have launched the phase there. Obviously, I can understand Ultra World was launched much later in the quarter. But how do you think the response overall has been since we are already one and a half months through the quarter? So the response to that project?
It is up to our expectations. The launch has been very good, and we are satisfied the way the launch has happened. We are quite bullish on overall sales, and we will continue to get our numbers of pre-sales. What we have been talking, 30% growth year on year on our pre-sales number. I think we will very easily achieve that pre-sales number growth with all the launches and including the launch of Ultra World, what we have done.
Sure. That's helpful. That's it from my side and all the best. Thank you.
Thank you, Pritesh. Thank you.
Thank you. Participants, to ask a question, you may please press star one. We have the next question from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah. Hi. Good evening, sir. Sir, you said earlier that you want to double your GDV in the next three years. So essentially, what you're saying is you'll add about INR 38,000 crore worth of additional projects in the next three years. Is that the correct understanding?
Yeah. Sorry. Go ahead.
Hello? We lost. Hello?
Sorry, we lost you, Kunal.
Okay. Yeah. I'll just repeat myself. So you said.
Yeah. We lost you.
Am I audible now? Hello?
Members of the panel speaking.
Yeah. Are we audible to you, sir?
Yeah. You are audible. You are audible.
Thank you.
Am I audible?
Sir, you are audible. You may proceed.
Okay. So Kamal, you mentioned earlier that you'll double the GDV in the next three years. Just correct me if I'm wrong. You're talking about so essentially, what you're saying is you'll add ₹38,000 crores worth of GDV in the next three years in terms of new projects. Is that what you're saying?
So yeah. So if you see our GDV value chart, what we have done, in FY22, we were with a GDV value of ₹13,650 crores. And when we tell in FY25, we are more than double. We are almost triple in GDV value from FY22 to FY25 today. If you look at FY25, we are at ₹37,000 almost. So more than, in fact, triple, almost triple, almost triple. And if you look at FY23, once again, so in FY23, we were at ₹19,000 crores GDV value. So in FY26, if you look three years from FY23, we should be ₹38,000 crores. We are already ₹37,000 crores.
Correct.
Again, if you take FY24, which is INR 26,000 crores, we are talking that in FY27, I should be INR 52,000 crores. So if you tell me in FY27 that there will be INR 52,000 crores, yes, we are confident in FY27, we will be INR 52,000 crores. I hope I have answered your question, Kunal.
Sure. So you're saying that you'll add about INR 15,000 crores of additional projects in the next two years.
In the next two years. Yeah. Minimum. Minimum.
Correct. And any color or just a related question on that? Any color on where you'd be adding these projects within the city limits or outside of the city limits, if you can share?
So, Kunal, very good question once again. So if you see, all the new projects which have been added are in the main city limits. And it is mainly, in fact, in South Mumbai or in the Bandra locations. So we are clear that we want to keep our portfolio fully balanced because we are Mumbai-focused, in MMR-focused. We want to be across the city limits. And now we feel that our more addition will be towards the South Mumbai or in the city limits.
Okay. Great. Good to know, sir. My second question, sir, is on the rental portfolio. You have highlighted that by FY28, you'll have Sunteck City, Fifth Avenue commissioned and ready sort of. Where are we in terms of approvals and plans here for the Fifth Avenue?
Yeah. In commercial portfolio, obviously, we have got the main approval, which we were not getting it, which we have already, I think I mentioned in the last call or before that, that we have got that approval through the court. And now we are in the process of any time launching that, start the construction. Basically, we want to lease out that property. So we will be very soon starting the construction on it.
Okay. Okay. Understood. And lastly, sir, what's the approval status for Borivali now? And what's the launch pipeline for that?
So we are approval process. Very frankly, we are not clear right now since there is a change in the government, what will be the new government policy. I just want to share that it comes under some SDZ policy. So this government has given some SDZ policy. I think most of all the people who are waiting for the clear SDZ policy are just waiting. We know that we are very close to the election dates. And as and when the new government comes, if there is more clarity on that SDZ policy, we will like to take that approval. In fact, the scope of getting the approval is in the scope with the landlord. It is in landlord's scope to get the approval. So obviously, he's waiting for this SDZ policy to be cleared once the new government comes.
I think we should be very soon getting a lot of clarity once the new SDZ policy is in place.
Great. Great. So does that mean that FY26 launch is more likely?
So, Kunal, I just mentioned that when there is a clarity, we would like to give you an exact day and time. At least we will be able to tell you that we'll be able to launch in the next six to nine months. And if that clarity would come, first thing we will add to our GDV value, this project to our GDV value. And that's why we have so much confidence that we'll continue to put more projects in the GDV value because we know what we are negotiating right now in the market. And some of the projects, we are at a very advanced stage in getting into the GDV value, as well as we are negotiating some very new projects, which is in South Mumbai and Bandra locations.
We are confident that as soon as we get clarity for SK Resorts, which is in Borivali, we will be able to maybe ideally put that at least in GDV value in FY26 for sure.
Sure. Sure. Very helpful, sir. Thank you. All the best.
Thank you, Kunal. Thank you.
Thank you. Ladies and gentlemen, you may press star and one if you wish to ask a question. Ladies and gentlemen, we will conclude our question and answer session at this point. I would now like to hand the conference over to the Chairman and Managing Director, Mr. Khetan, for closing comments. Over to you, sir.
Thank you all for taking the time out of your busy schedule to join us today. In case any of your queries have been left unanswered, please feel free to reach out to our investor relation team. We truly value your continued support and look forward to strengthening this relationship. Stay safe, everyone. And thank you.
Thank you. Thank you all for taking the time out for Sunteck's earnings call.