Suraj Estate Developers Reports Strong Financial Performance In Q2 And H1 FY25 – IPO Central

Suraj Estate Developers, a prominent player in the South Central Mumbai real estate market, has announced impressive financial results for the second quarter (Q2) and the first half (H1) of the fiscal year 2025. The company’s profit after tax (PAT) surged by an astonishing 88% year-on-year in Q2 FY25, reaching INR 31.8 crore, and a remarkable 97% increase in H1 FY25, totaling INR 62 crore.

Key Financial Highlights

Total Income: Suraj Estate reported total income of INR 109.6 crore for Q2 FY25, up 5.7% from INR 103.7 crore in Q2 FY24. For H1 FY25, total income rose to INR 244.3 crore, marking an 18.3% increase from INR 206.5 crore in H1 FY24.
EBITDA: The company’s EBITDA stood at INR 64 crore in Q2 FY25, reflecting a slight increase of 1% compared to INR 63.4 crore in the same quarter last year. In H1 FY25, EBITDA grew by 16%, reaching INR 128.2 crore.

EBITDA Margin: The EBITDA margin decreased slightly to 58.4% in Q2 FY25 from 61.1% in Q2 FY24 but improved to 52.5% from 53.5% in H1.
Debt Management: As of September 30, 2024, gross debt was reported at INR 429 crore, a marginal increase from INR 426 crore as of March 31, 2024.

Operational Achievements

The operational performance also showcased significant growth:

Sales Area: Suraj Estate achieved a sales area of 22,201 sq ft in Q2 FY25, up 14% from the previous year.
Sales Value: The sales value increased by 26%, amounting to INR 107 crore in Q2 FY25.
Collections: Collections soared by an impressive 89%, totaling INR 127 crore for the quarter.

The company attributed these results to a combination of strategic pricing adjustments and an enhanced product mix that appealed to a growing customer base.

Strategic Initiatives and Future Outlook

In October 2024, Suraj Estate Developers successfully raised approximately INR 343 crore through a preferential issue of equity shares and convertible warrants. This capital is earmarked for key initiatives including land acquisitions and enhancing working capital.Mr. Rahul Thomas, Executive Director of Suraj Estate Developers, expressed his satisfaction with the quarterly performance despite it being traditionally weaker. He emphasized the company’s commitment to leveraging its financial strength to expand its footprint in both residential and commercial real estate sectors.

“Our optimism regarding the potential within the Mumbai Metropolitan Region remains steadfast,” he stated. “We are poised to capitalize on growth opportunities while delivering sustainable value to our stakeholders.” Suraj Estate Developers has been a significant player in the real estate sector since its inception in 1986, focusing on redevelopment projects across South Central Mumbai. With a robust portfolio that includes ongoing projects and future developments, the company is well-positioned for continued success in an evolving market landscape.

Conclusion

The strong financial results from Suraj Estate Developers not only highlight its operational resilience but also reflect broader trends within India’s real estate sector, which is experiencing renewed investor confidence and increasing demand for both luxury and affordable housing solutions. As the company moves forward with its strategic initiatives, it aims to solidify its position as a leader in the competitive Mumbai real estate market.