Sunteck Realty Ltd — Call Transcript 2025

May 9, 2025

Sunteck Realty Ltd.

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Date: 9[th] May, 2025

SRL/SE/12/25-26

National Stock Exchange of India Ltd

Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051 Symbol: SUNTECK

BSE Limited

Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai - 400 001 Scrip Code: 512179

Sub: Transcript of Earnings Conference Call on Q4 and Full Year FY 2025 results and Business Updates

Dear Sir/Madam,

Pursuant to Regulations 30 and 46 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in furtherance to our letter dated 5[th] May, 2025, please find enclosed the transcript of the Earnings Conference Call on Q4 and Full Year FY 2025 results and Business Updates. The said transcript is also uploaded on the website of the Company. This can be accessed at the link below:

https://www.sunteckindia.com/images/investor/financial/1746792766_Sunteck-Realty-Ltd-Earning-Call-Transcript-May-05-2025.pdf

Kindly take the same on record.

Thanking You .

Yours sincerely,

For Sunteck Realty Limited

RACHANA Digitally signed by RACHANA VIPUL VIPUL HINGARAJIA HINGARAJIA Date: 2025.05.09 18:54:36 +05'30'

Rachana Hingarajia Company Secretary Encl: a/a

5[th] Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai 400057. Tel: +91 22 4287 7800 Fax: +91 22 4287 7890

Website: www.sunteckindia.com CIN: L32100MH1981PLC025346 Email Id: cosec@sunteckindia.com

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“Sunteck Realty Ltd. Q4 FY25 Earnings Conference Call”

May 05, 2025

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MANAGEMENT: MR. KAMAL KHETAN – CHAIRMAN & MANAGING DIRECTOR MR. PRASHANT CHAUBEY – CHIEF FINANCIAL OFFICER

MR. ABHISHEK SHUKLA – VP (STRATEGY & INVESTOR RELATIONS)

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Sunteck Realty Ltd. May 05, 2025

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Moderator:

Ladies and gentlemen, good day and welcome to the Sunteck Realty Limited Earnings Conference Call for Q4 FY25.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 that this call will be for 30 minutes and for the duration of the conference call, all participants will be in listen only mode. This Conference Call is being recorded and the transcription of 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 Question-&-Answer session, and we request to restrict questions to two per participant. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ 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 be based on historical information or facts and may be forward looking statements including those related to business standards, plans and strategies of the Company, its future financial condition and growth prospect. These forwardlooking statements are based on the expectations and projections and may involve a number of risk and uncertainty and other factors that could cause actual results, opportunity, 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.

Kamal Khetan:

A very good afternoon to everyone and thank you for joining us today. I would like to take you through the key developments for this period.

To start on positive note, we have registered our highest ever pre-sales of Rs. 870 crores for the 4[th] Quarter of FY25 which led to the highest ever full year pre-sales of over Rs. 2,500 crores for FY25, registering a robust growth of 32% over FY24. With this, we have grown faster in FY25 versus previous year, and we are confident of achieving similar growth in FY26 with higher margins. Sales contribution was from all projects, especially our Uber-Luxury projects in Mumbai. These sales give us better margins as well. The net GDV as of FY25 stands at about Rs. 40,000 crores which has grown nearly three times from FY22. We continue to focus on acquisition with higher EBITDA margins. We have spent more than Rs. 180 crores towards new acquisitions in FY25. I am confident of announcing a few new acquisitions very soon. We have generated a strong net operating cash flow surplus of Rs. 374 crores in FY25.

Our balance sheet remains strong with a net cash surplus of Rs. 125 crores. Our net debt to equity has improved from (-0.02x) in 3[rd] Quarter of FY25 to (-0.04x) at end of 4[th] Quarter of FY25.

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As we move ahead in FY26, we remain focused on value-accretive project additions and more projects coming up for revenue recognition. We are confident of surpassing the margins of the previous years.

I shall now hand over the call to Prashant Chaubey to take you through the financial performance of the full year FY25.

Prashant Chaubey:

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 brief update on “Financial” and “Operational Performance” of Quarter 4 and full year of FY25.

The key details are:

We sold Rs. 2,531 crores worth of area in full year FY25 which is a 32% growth over FY24 presales of Rs. 1,915 crores. During Quarter 4 FY25 pre-sales registered a growth of 28% booking value of Rs. 870 crores as compared to Rs. 678 crores in the same quarter last year. Collections for FY25 stood at Rs. 1,255 crores as compared to Rs. 1,236 crores in FY24 resulting in a net cash flow surplus of Rs. 374 crores.

The cash flow ROCE stood at 16%. Consolidated cash flow ROCE of past three years stands at a weighted average of 20%.

On the profit and loss front, operating revenue grew by 51% year-on-year for the full year ended FY25 to Rs. 853 crores in comparison to Rs. 565 crores in the same period in the last financial year. EBITDA stood at Rs. 186 crores in FY25, 58% growth over FY24 EBITDA of Rs. 117 crores. EBITDA margin stood at 22%. We reported net profit of Rs. 150 crores which is 112% growth over FY24 Net profit of Rs. 71 crores in FY24.

For Quarter 4 FY25 operating revenue grew by 27% to Rs. 206 crores quarter-on-quarter and EBITDA stood at Rs. 69 crores. EBITDA margin for Quarter 4 FY25 stood at 33%.

On a quarterly basis our EBITDA margin starting from Quarter 1 of FY25 has shown steady improvement of 10% in Quarter 1 FY25 to 22% in Quarter 2 FY25, 30% in Quarter 3 FY25 and ended the year with 33% in Quarter 4 FY25. We reported a net profit of Rs. 50 crores. Our net debt to equity stands at (-0.04x) with a net cash surplus of Rs. 125 crores during FY25.

Thank you. With this we open the floor for questions.

Moderator:

Rishabh Gang:

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Rishabh Gang from Sachet Family Office. Please go ahead.

Good set of numbers. I wanted to understand what is the pre-sales split between Napean Sea and BKC which is in our Uber-Luxury ones.

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Prashant Chaubey: Our sales for BKC in Quarter 4 was Rs. 150 crores and our sales in Napean Sea was Rs. 423 crores. Rishabh Gang: Okay. Also, for the pre-sales at Nepean Sea, what kind of agreement are we doing? Because I think it is not yet RERA launch, right? and has the old building of Baug-e-Sara demolition started? Kamal Khetan: So, the last question first. Old building of Baug-e-Sara demolition has started in full swing and what we have assigned now more areas to our high-profile owners and tenants of this existing building under the permissible norms under that we are doing this new sale that is a part of presale. Rishabh Gang: Okay. So, it is existing people who are living there. Kamal Ketan: Yes, who have the ownership rights and the tenancy rights. Rishabh Gang: Okay, also sir what is the status of our Dubai project? Kamal Khetan: So, the Dubai project as we have always been mentioning is obviously under the approval and designing stage and we will be looking to launch towards the latter part of the FY’26 or early FY’27. Rishabh Gang: Just one more question from my end, which are the projects, which are going to lead our presales for the next two quarters especially in Premium-Luxury and the Aspirational-Luxury one? Kamal Khetan: So, we all know that Uber-Luxury is doing better than Premium-Luxury and Premium-Luxury is doing better than Aspirational-Luxury. So, Uber-Luxury will take more lead than PremiumLuxury but nevertheless there are lot of launches which are coming, new launches for us in Premium-Luxury as well so I think both will drive maximum growth, definitely much better than Aspirational-Luxury. Moderator: Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead. Pritesh Sheth: Thanks for the opportunity. Firstly, congratulations, a good year for us both in terms of pre-sales as well as P&L profitability. The first question is on next year’s growth what are the likely projects which are now going to contribute in terms of growth and status in terms of launches for each of those if you can provide that would be very helpful. Thank you. Kamal Khetan: So, Pritesh for the launches definitely we are looking forward for the formal launch of Sunteck Nepean Sea Road project which is of GDV value of, on the current status more than Rs.5000 crores and the 5[th] Avenue at ODC Goregaon West which is for one tower of GDV value of more than Rs.1,500 crores and Sunteck’s Skypark one more tower which we look to launch in this current financial year which is again close to GDV value of Rs.700 crores. Then Sunteck’s Beach

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Residences Vasai which again we will be launching, SBR again one or may be two towers with a GDV value of close to, both the towers put together Rs.400 crores to Rs.450 crores and then one new phase of Sunteck World Naigaon which is again close to Rs.350 crores. So all these new launches what we are planning to see in this current financial year and with which we are confident that we will achieve our similar pre-sales growth what we have achieved in FY’25.

Pritesh Sheth:

Sir, even Dubai right while you mentioned.

Kamal Khetan: So, Dubai we are not considering although in this pre-sales but we are trying our best to see that we can launch in FY’26 or else early FY’27.

Pritesh Sheth:

Okay. If at all if it is early FY’27 what would be causing that delay? Is it regulatory thing or --

Kamal Khetan:

It will be the approvals, nothing else obviously approvals and it is that the designing stage work we were contemplating the mix of the projects that is why we had to change the design once or twice. Right now we are at a very advanced stage for our product mix because it is a large project. It is almost close to 3 acres land parcel next to Dubai Mall in heart of Dubai Downtown, so we want to be very cautious what we are launching, so now it is at the final stage, so now approvals and then obviously we have to look at launch.

Moderator: Thank you. The next question is from the line of Gurpreet Singh from Arihant Capital. Please go ahead.

Gurpreet Singh: Good Afternoon sir. First of all congratulations for the wonderful set of results. I have a couple of questions. The first one is like collections seem to be more or less in line with the last year, so what kind of trajectory are we expecting on collections front and secondly how much revenue recognition we are expecting in the coming financial year now?

Kamal Khetan: So, collections, one thing is very clear that this time more pre-sales if you see has come from the Uber-Luxury and the new projects, the new launches, projects which are just going to start. So obviously those collections at the initial stage is low but knowing that now 4[th] Avenue ODC Sunteck City in the coming quarter we are expecting that to receive occupation certificate. So the collections because of the projects which are under completion will come in the next two - three quarters, we are expecting the collection to be obviously more robust this year than the last financial year. Coming to the next question I think I will leave it to Prashant to answer your next question.

Prashant Chaubey: With regards to revenue recognition definitely with the occupation certificate getting received for Sunteck City 4[th] Avenue so that project will come up for revenue recognition in FY26.

Kamal Khetan: And we are confident, you will see that similar growth of 30%-35% in even our revenue and our margins as well as our bottom line.

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Moderator: Thank you. The next question is from the line of Abhinav Sinha from Jefferies India. Please go ahead.

Abhinav Sinha: Congratulations on the strong quarter and the year. On the sales trajectory just wanted to check so you are expecting growth to be approximately 30% next year ex of Dubai. Kamal Khetan: I have said similar growth in spite where people are giving lesser guidance, but we are confident that we will have a similar growth this year irrespective of Dubai. Abhinav Sinha: So north of 20% should that be a fair number? Kamal Khetan: Yes, easily, very confident.

Abhinav Sinha: Which segment do you think will drive this? This is basically BKC, Napean Sea or whole mix? Kamal Khetan: Obviously this year also if you see our sales has been across all segment but we all have been saying that Uber-Luxury is definitely doing much better than Premium-Luxury and PremiumLuxury is doing much better than Aspirational-Luxury. So, our major focus will be on PremiumLuxury as well as Uber-Luxury to drive this growth. Abhinav Sinha: Secondly, I wanted to ask your observation on how pricing behavior has been across segment this year and what are your expectations for the same next year? Kamal Khetan: We are not contemplating any price rise in any segment, and we are hoping that even if the price remains stagnant, we have more focus on the velocity and we will try to see that we can do more velocity than the price rise; because our margins has improved a lot and it will continue to see irrespective of the price rise. We are confident of our margins to remain intact or only going better from here. Moderator: Thank you. The next follow-up question is from the line of Rishabh Gang from Sachet Family Office. Please go ahead. Rishabh Gang: Any senior management hire that we have done especially for sales and marketing and because you know we are going to have a lot of Uber-Luxury kind of inventory going forward? Kamal Khetan: This is a regular process of hiring senior management in every department and everything. I think that process is already there, and we have enough staff for this new growth. We are also hiring more people to see that we continue to maintain this momentum of our pre-sales growth and we have no concerns about that. Any reason of asking this specific question? Rishabh Gang: No, just in the sense of capability building. Moderator: Thank you. The next question is from the line of Parvez Qazi from Nuvama group. Please go ahead.

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Parvez Qazi:

Kamal Khetan:

Moderator:

Kamal Khetan:

Moderator:

I wanted to get your thoughts on our Bandra project and when do we see that getting launched?

Okay. Bandra, we have already started; toward the end of this financial year, we have almost acquired that project redevelopment. I think architecture designs are getting finalized and in the process of getting the approvals. I think once that approval comes, we are quite confident, I can give you on a conservative side towards the end of this financial year or toward the early next financial year we will be able to launch that project. But that is with a not very big GDV value, so we are not even considering that in our whatever numbers we are contemplating for the next. If it comes in this financial year, it is always better and more the merrier so that is how it is.

Thank you. Ladies and gentlemen that was the last question for today. I now hand the conference over to Mr. Kamal 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 relation team. We truly value your continued support and look forward to strengthening this relationship. Stay safe everyone and thank you once again.

On behalf of Sunteck Realty Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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