Sunteck Realty Q1 sees sequential decline as second wave hits

Sunteck Realty reported a sequential decline in its collections for the first quarter of FY22 compared to the immediately preceding fourth quarter of FY21, as COVID-19 curtailed new launches. Nevertheless, collections were far better than the year-ago numbers. Collections refer to the actual cash that the company collects from its buyers.

Total collections for the three months from April to June came in at Rs 172 cr, compared to Rs 321 cr for the preceding three months of January to March.

The Jan-Mar numbers were an improvement over the Rs 252 cr collected in the preceding three months of Oct-Dec, as the economic situation in the country improved in the wake of a receding COVID-19 pandemic.

However, the latest numbers show that the real estate sector again suffered a set back in the Apr-Jun period due to the second wave of COVID-19.

Nevertheless, the collection of Rs 172 cr during Apr-Jun this year was far higher than the Rs 65 cr that the company collected from customers during the same three months of 2020, when the country faced a total lockdown.

Collection efficiency was at 98%, compared to 64% in the year-ago quarter.

This time, the collection number was not very different from the ‘pre sales’ or ‘booking’ number. Presales or bookings includes the total value of properties that were contracted to be sold during the quarter with the payment of a token amount.

The presale number for the first quarter was Rs 176 cr, compared to Rs 371 cr in the preceding Jan-Mar period.

Presale numbers can be seen as a general indicator of future collections, but are highly influenced by ‘launch events’ related to the opening of booking of new projects.

Kamal Khetan, Chairman and Managing Director of Sunteck Realty Ltd said the company saw strong momentum in operational performance during the quarter.

“Both pre-sales and collections witnessed sturdy growth along with high collections efficiency. The industry consolidation is leading to rise in the share of business for organized developers and Sunteck will be one of the biggest beneficiaries of this trend,” he added.

Sunteck Realty Limited focuses on a city centric development portfolio of about 38 million square feet spread across 19 projects under brands such as Signature luxury residences, Signia ultra luxury residences, Sunteck City premium residences and Sunteck World ‘aspirational luxury’ residences.

Among its projects are Signature Island at the upmarket Bandra Kurla Complex (BKC), Sunteck City in Oshiwara District Centre (ODC), Goregaon and SunteckWorld at Naigaon – the largest township of MMR’s western Suburbs.