Suraj Estate Developers’ PAT Surges by 88% in Q2 FY25 & 97% in H1FY25

Mumbai / November 15, 2024: Suraj Estate Developers Limited, a leading real estate player focused on the South Central Mumbai (SCM) market with specialisation in redevelopment projects announced its unaudited financial results for the quarter and half year ended September 2024, the company said in a statement. 

The company reported a strong Q2FY25 performance, with total income increasing by 5.7% year-over-year to Rs 109.6 crore. EBITDA grew 1.0% to Rs 64 crore, while EBITDA margin contracted slightly to 58.4%. Notably, profit after tax (PAT) surged 88.1% to Rs 31.8 crore. For the first half of FY25, the company’s total income surged 18.3% to Rs 244.3 crore, EBITDA rose 16% to Rs 128.2 crore, and PAT jumped 97% to Rs 62 crore. 

Suraj Estate Developers has significantly reduced its debt burden. As of September 30, 2024, the company’s gross debt stood at Rs 429 crore, a substantial decrease from Rs 554 crore in September 2023. Similarly, net debt declined from Rs 530 crore to Rs 381 crore over the same period, the statement added. 

The company reported strong operational performance in Q2FY25. Sales area increased by 14% year-on-year to 22,201 sq ft, while sales value surged 26% to Rs 107 crore. Collections for the quarter stood at Rs 127 crore, a significant 89% increase over the same period last year. Realization per square foot improved by 10% to Rs 48,366. For the first half of FY25, the company achieved a 2% increase in sales area to 49,632 sq ft and a 13% increase in sales value to Rs 248 crore. Collections for the period amounted to Rs 199 crore, a 46% year-on-year growth. Realization per square foot improved by 12% to Rs 49,886. 

Commenting on the performance, Rahul Thomas, Executive Director, of Suraj Estate Developers, said, “We are extremely pleased with our operational performance this quarter, particularly given that it traditionally represents a seasonally week quarter. Despite this, we achieved a commendable 14% growth in sales volume alongside a 10% improvement in realizations, showcasing the resilience and growing demand for our offerings. The year-over-year decline in finance costs is another positive development, largely attributable to the utilization of IPO proceeds for debt repayment and reduced blended average cost of borrowings. These favourable financial conditions have contributed to strengthening our bottom line and overall financial stability.

Additionally, our successful Rs 343 crore raised through a preferential issue of equity shares and share warrants marks a pivotal milestone, providing growth capital to support key initiatives, including land acquisitions, working capital enhancement, general corporate purposes, and issuance-related expenses. This funding is essential to expanding our operational reach. We are committed to deploying these funds strategically to consolidate our standing in the residential and commercial real estate sectors, seize emerging opportunities, and deliver sustainable, long-term value to our stakeholders. Our optimism regarding the potential within the MMR region remains steadfast, and we look forward to capitalizing on its growth prospects in alignment with our vision for a robust and diversified portfolio.”