Mumbai-based real estate developer Sunteck Realty Ltd announced over the weekend that its pre-sales during the second quarter ended September 2023 (Q2 FY24) grew 17.2% to around Rs 395 crore. Presales refer to the sale of a commercial or residential unit prior to the completion of its construction process.

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While releasing its operational and business updates, Sunteck Realty also informed that its collections for the quarter remained healthy at around Rs 214 crore. Collection basically refers to the total rent a company collects from several properties they own.

For the first half of 2023-24 (H1 FY24), Sunteck registered a growth of 16.7% year-on-year in pre-sales to around Rs 782 crore, while collections stood at Rs 502 crore.

Sunteck also announced that the company is planning to launch two new large projects in Mumbai. The first one is planned in the eastern suburbs at Kalyan and the second in South Mumbai at Nepean Sea Road.

The company currently has five large ongoing projects – Signature and Signia at BKC, Sunteck City at ODC, Goregaon West, Sunteck World at Naigaon, SBR at Vasai West and Sunteck Sky Park at Mira Road.

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“These 7 growth engines continue to yield strong operating cash flow surplus going forward with a total gross development value of around Rs 30,000 crore,” Sunteck said in its statement released on Saturday.

After the announcement, shares of Sunteck Realty gained as much as 2.5% to hit a fresh 52-week high of Rs 485.95 on BSE on Monday. Notably, the stock gained over 10% last week after global brokerage firm Jefferies maintained its ‘Buy’ rating on the stock on account of the company’s deal with IFC.

Last month, Sunteck and IFC (International Finance Corporation) partnered to create a joint platform with a total investment of up to Rs 750 crore to promote the development of close to 12,000 high-quality housing units across four to six green housing projects within the Mumbai Metropolitan Region (MMR).

“This partnership shall be centred around the development of large-scale housing projects to cater to the mid-income demographic as Sunteck has a strong focus on this population segment.” The company said in its statement.

In its research note, Jefferies said that Sunteck Realty’s tie-up with IFC is a booster as 75% of the portfolio is geared to the affordable and mid-income housing segment.

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(Edited by : Asmita Pant)

First Published:Oct 16, 2023 10:58 AM IST