Ladies and gentlemen, good day and welcome to the Sunteck Realty's Earnings Conference Call for Q3 and nine months FY 2025. 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 participant 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's 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 then zero on your touchtone 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.
A very good afternoon to everyone, and thank you for joining us today to participate in our company's earnings conference call for the third quarter and nine months of the financial year FY 2025. I would like to take you through the key developments in this period. We registered a strong pre-sales growth of 40% in our third quarter, surpassing our growth guidance of 30%-35%. We now stand at INR 1,661 crores pre-sales for the nine-month FY 2025, our highest ever so far. The strong growth in pre-sales was driven by our Uber three segment, which comprises of our three BKC projects, namely Signature Island, Signia Heights, and Signia Pearl, and now Nepean Sea Road project. We have strategized our portfolio to have higher sales contribution from the Uber Luxury projects, which has a very high EBITDA margin.
On the business development front, we have added Nepean Sea p roject two, which brings an additional gross development value, GDV value, of approximately INR 2,400 crores. This addition boosts the total GDV of the Nepean Sea Road project.
The line for the management has been disconnected. Please stay connected while we reconnect the line for the management back. Ladies and gentlemen, we have the line for the management reconnected. Please go ahead, sir.
Sorry, apologies for this technical snag. I think I will repeat once again. From the strong growth in pre-sales was driven by our Uber Luxury segment, which comprises of three BKC projects, namely Signature Island, Signia Heights, and Signia Pearl, and now Nepean Sea Road project. We have strategized our portfolio to have higher sales contribution from the Uber Luxury projects, which has a very high EBITDA margin. On the business development front, we have added Nepean Sea project two, which brings an additional gross development value to approximately INR 2,400 crores. This addition boosts the total GDV of our Nepean Sea Road project to around INR 5,400 crores, marking a significant milestone in our growth trajectory. The total GDV of Sunteck as of nine months FY 2025 stands at INR 40,225 crores, which has more than doubled in the last two years.
We are quite upbeat on our business development pipeline, and you will see similar growth in times to come, which all will be with higher EBITDA margins. Our strong net operating cash flows surplus of approximately INR 312 crores in nine months of FY 2025 has further strengthened our balance sheet with a net cash surplus of INR 61 crores. We are now gearing up to launch a new phase in Sunteck City at ODC Goregaon West. The total GDV of this phase is INR 3,000 crores, distributed over two towers. We are also preparing a launch for one more new tower at Sunteck Sky Park, Mira Road. We expect Q4 FY 2025 to be the best-ever quarter on pre-sales till date for Sunteck, given our upcoming launches and strong pre-sales momentum. Now, I shall hand over the call to Prashant Chaubey to take you through the financial performance of nine months FY 2025.
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 financial and operational performance of Q3 and nine months of FY 2025. The key details are as follows. We sold INR 635 crores worth of area in Q3 FY 2025, which is a 40% growth over Q3 of FY 2024. During the nine months FY 2025, pre-sales registered a growth of 34%, with a booking value of INR 1,661 crores over INR 1,237 crores for nine months FY 2024. Collections for Q3 FY 2025 stood at INR 336 crores versus INR 438 crores in Q3 FY 2024, while for nine months FY 2025, collections stood at INR 945 crores versus INR 940 crores in nine months FY 2024.
The strong collections have resulted in a net operating cash flow surplus of INR 312 crores as of nine months FY 2025. Operating revenue grew by 281% year-on-year for three months ended December 24 to INR 162 crores in comparison to INR 42 crores in the same period in the last financial year, owing to recognition of revenues from Sunteck World projects and the BKC projects. EBITDA stood at INR 48 crores in Q3 FY 2025 versus EBITDA loss of INR 15 crores in the same period last year. EBITDA margin stood at 30%. We reported net profit of INR 43 crores over Q3 FY 2024, net loss of INR 10 crores. For the nine months ended FY 2025, operating revenue grew by 369% to INR 647 crores on a year-on-year basis. EBITDA stood at INR 117 crores, and we reported a net profit of INR 99.9 crores.
Our net debt to equity stands at, we are a net debt zero company with a net cash surplus of INR 61 crores, and with this, we open the floor for questions. Thank you.
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 their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. In order to ensure that the management is able to address queries from all the participants in the question conference, kindly restrict your questions to two at a time. You may join back the queue for follow-up questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Pritesh Sheth from Axis Capital. Please go ahead.
Yeah, thank you for the opportunity. Good evening, everyone. First, just to clarify, you mentioned that this quarter's Uber Luxury sales was contributed by some of the contribution came from Nepean Sea Road project as well. Did I heard that correctly?
Yeah, so it is Pritesh. The Uber Luxury sales come from both BKC and our Nepean Sea Road project as well.
Okay. And if you can, can you give us some contribution, how much it was, just if you can?
The total contribution from Uber Luxury segment was close to INR 422 crores.
Okay. And second, on the GDV increase that I see for Nepean Sea Road project versus the last disclosure, I think Q2 we mentioned that it's around INR 2,500 crores for this first Nepean Sea Road project. Now it has increased to INR 2,635 crores. Is it because of some area increase? We are developing something higher, or it's purely because of some realization increase?
No, so it's due to the area increase. Now the total area from both Nepean Sea Road one and two becomes close to 250,000 - 275,000. And that is how the total GDV becomes. By addition of another INR 2,400 crore, the total GDV becomes INR 5,400 crore.
Okay. Okay. And so congrats on one more project in Nepean Sea. Now, overall, how do you look at the potential in Nepean Sea? Do you see in future any more societies, etc., being acquired by us for expanding our portfolio in Nepean Sea Road?
Nepean Sea Road, see, we are very clear that obviously we are going to do we are very upbeat about our new acquisitions which are going on and which we are very clear at the same time which will be at a very high EBITDA margin. We will not be taking redevelopment just at very low margins even there is a competition. So we are only eyeing at those locations. And obviously, we all know that Uber Luxury segment is the best segment which is doing the best. So the most of our incremental revenue you will see in that segment and without compromising on EBITDA margins.
But any more potential you see there in Nepean Sea Road?
Yes, we see this potential to grow further.
Okay. Okay.
Looking at that for sure.
I have a few more on follow-up, but I'll join back the queue and take a look. Thank you.
Thank you. Thank you, Pritesh.
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one on your touchtone phone. The next question comes from Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good evening, sir. I got disconnected momentarily. I don't know whether you have answered this. Just wanted to know, sir, since you have sold in Nepean Sea Road project, could you give us some insight about the project in terms of what kind of products, ticket size, and how many towers? And also in this quarter's pre-sales, what was the contribution of just Nepean Sea Road?
So Biplab want to very clearly say that we are looking at this project to be one of the best high-end projects of the country. We have decided to conceptualized this project to be amongst the best in the country and one of the largest in the high-profile micro market. We have already seen witnessing a strong interest from all the ultra-HNIs and industries. What we have done is we have right now given to the owners we have committed and given the areas to the existing high-profile owners of the apartment, what we have done right now.
So this is not pre-sales, sir?
This is a pre-sales. This is a pre-sales. We have taken also the accordingly, we have done the agreement and documentation. This is a part of the pre-sales. This is part of pre-sales.
Okay. And in terms of launches in the fourth quarter, what would be the actual? I mean, you have two towers you're planning to launch in Oshiwara and in Mira Road. I just wanted to understand in terms of actual GDV, what would be the launch pipeline in fourth quarter?
So that's why we are quite confident. That's why we said Q4 will be. I think you got disconnected. So Q4, that's what we are trying to say that our Q4 we are expecting to be the best-ever quarter on pre-sales till the date for Sunteck because of obviously the upcoming launches, which is one we are looking at new phase launch at ODC , which is at Goregaon West, obviously. The GDV value of that is INR 3,000 crores. This will comprise of that phase will comprise of two towers, which is INR 3,000 crores, and one tower which we are looking to do at Sunteck Beach Residences, SBR, and one new tower at Sunteck Sky Park at Mira Road. And the one tower at Sunteck Beach Residences, we are looking to that to be at the GDV value of close to INR 250 crores-INR 300 crores.
Another tower which is at Sunteck Sky Park at Mira Road, the GDV value is close to INR 600 crores -INR 700 crores.
Thank you. The line for the current participant has dropped from the queue. We'll move on to the next question. The next question comes from Parvez from Nuvama Group. Please go ahead.
Hi. Congratulations, sir, for a great set of numbers and also the strong pipeline of launch in Q4. So my question is with regards to FY 2026. I mean, you did mention that we'll have three launches in Q4, but in FY 2026, what incremental new projects or phases can we see coming up for launches across our existing as well as pipeline projects? Thank you.
Parvez, very frankly, you know that so we have all what we talk about are growth engines. These are all large projects. So we don't have to, very frankly, worry. If you see Sunteck City, we are sitting on the large parcel of land. So definitely, we'll be launching something new in ODC , again, Goregaon West in FY when we are talking about FY 2026. And when it comes to Naigaon, obviously, we will be obviously launching one more phase. And when it comes to Sky Park, we can look at launching at least one more tower there, again, in FY 2026. So you'll see all the launches across all the projects, which are larger projects. And plus, obviously, we will look at something new which we can launch. We can obviously look at launching from our existing other portfolios, which has not been launched.
We can look at even that in queue over and above what we are looking. So we have what guidance we have surpassed our guidance almost what we have committed for this year. And we are quite confident that whatever launches which are there for the next year, FY 2026, there also we are quite optimistic about having a similar or a better growth than this.
So can we target, let's say, a 25%-30% pre-sales growth in FY 2026 also?
Yes. Very easily. Yes. Very easily and very confident about it.
Sure, sir. Second question is with regards to our under-construction annuity project at ODC . So when do we see that getting completed?
What we are talking about, sir, to start that project is after our launch, very soon, the launch of this Fifth Avenue, which we are launching in ODC . We are looking to complete that project, the commercial project, in FY28.
Sure, sir. Thanks and all the best, Parvez.
Thank you. The next question comes from Vaibhav Shah from Nippon AIF. Please go ahead.
Yeah, hi. Thanks for giving me the opportunity, and congrats to the team on a good quarter. Sir, just a couple of things, so wanted to understand in terms of approvals for the launches that you have mentioned, how are we?
Vaibhav, can I interrupt? Just can you start? Initially, you were not sounding properly. I was not able to hear you. Can you start the question once again?
Yeah, sure. So in terms of the projects that you have mentioned for the launches which we are going to do in Q4, how far are we in terms of approvals?
Obviously, when we are talking about Vaibhav, any project which we are looking to launch in this quarter, current quarter, we are obviously at a very advanced stage, and that's why we are very confident. Even if we are talking about three to four launches, and even if we are confident that even if we skip one due to some approval problems or something, we are confident that our targets will be easily surpassed than what it is.
Okay. And sir, just one more thing. In Sunteck City, ODC, around what would be the area which we would be launching?
In one tower, we will be close to points. We will be close to 4 lakh-5 lakh sq ft.
Okay, so the total would be around, let's say, 0.9-1 million sq ft?
0.8-1 million sq ft in both the towers put together.
Understood.
We're looking to launch one tower right now immediately in Q4.
Okay. And just for the FY 2026 pipeline, can we expect that Dubai project to commit for FY 2026?
Whatever projects which are new projects which are there in queue. So we definitely very optimistic. We committed about the Nepean Sea Road, and we are well in time. We can see that we are trying to get that in line. Similarly, we are looking at Dubai also to launch in FY 2026.
Understood, and sir, just one last thing, if I could please again.
Just to make you aware, we also have Bandra, we also have Borivali, and we also have one or two more new projects which are there in our portfolio, so at least we are confident even if we launch two or three out of them, we will easily achieve our aggressive growth targets what we are achieving, but targeting at close to 30% plus in pre-sales.
Understood. And, sir, just one last, if I could please again, just on the launch strategy, so we will be launching the Nepean Sea project two only complete holdout of Nepean Sea project one or whether this will come in at a later stage, even let's say when we have some inventory in project ones?
Vaibhav, it will be very hard to explain you what are our plans on the call. I think we can discuss this offline. But definitely, we will this is part of first launch only. When we are talking Nepean Sea one, Nepean Sea two, that is part of the same tower and same launch.
Understood. Sure, sir. Thank you. And all the best.
Thank you. Thank you, Vaibhav.
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one on your touchtone phone. We have the next follow-up question coming from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Thanks for the follow-up. Just one question on collections. It's still lagging the pre-sales. But I think given we are about to deliver Avenue four, how do you expect this collection trajectory moving forward? And what could be the key triggers for this collection to scale up from here on?
So as you know, collections are milestone-driven. On completion of Sunteck City Fourth Avenue at ODC Goregaon West, plus initiation of construction at Sunteck Sky Park Mira Road, you will see collections jumping in the coming quarters. Moreover, with further progress in construction at Sunteck Beach Residences Vasai and Sunteck Crescent Park at Kalyan, you will see growth in collections. Thank you.
Got it. And these triggers will happen in next one or two quarters, or some of them will probably take a little longer?
Whatever we are talking about, it will happen in the near-term quarters as well, and it will sustain because construction will keep on moving up at a fast pace.
Got it. Got it. Fair enough. Thank you. That's it from my side. All the best.
Pritesh, just to reiterate, Q4, you will see Q4 and Q1 of FY 2026. Definitely you will see the big jump coming from giving the possessions of Fourth Avenue. Plus, then there will be follow-up other projects' possessions. This will be sustained, basically. That's what we are trying to say.
Sure, sure. That's very helpful, sir. Thank you.
Thank you. Ladies and gentlemen, we will take that as our last question for today. I would now like to hand the conference over to the Chairman and Managing Director, Mr. Khetan, for closing comments.
Thank you all for taking the time out of your busy schedule to join us today. In case if any of your queries have been left unanswered, please feel free to reach out to our investor relations team. We truly value your continued support and look forward to strengthening this relationship. And thank you once again. Thank you. Thank you, everyone.
Thank you. Thank you for taking out the time for Sunteck's earnings conference call. You may now disconnect.