Although at a pace slower than envisaged, Sunteck grew its sales and collections by around 18% and 28% in FY15...
Although at a pace slower than envisaged, Sunteck grew its sales and collections by around 18% and 28% in FY15.
The management continues to build its team to build operational systems and efficiencies. Consolidation of land and premium payments resulted in increasing debt, but we stay comfortable and maintian add rating.
Sunteck beat out FY15 numbers as sales were better at completed projects for the company. Reported operating margins were also better than our estimates we we believe realisations recognised during the quarter (and the year) were better than our estimates. Debt increased to R1,070 crore, in line with our estimates.
Sunteck has revalued and consolidated the 16-acre land parcel bought by it in FY12 in Goregaon (W), Mumbai. It plans to launch the next phase of this launch in FY16.
Sunteck sold area worth R1640 crorein Q4FY15, the highest quqarterly sales in the last 2 years and closed the year at R530 crore of sales, recording an 18% y-o-y growth. But sales were below the guidance of R700-800 crore at the beginning of the year. As construction of projects progressed well, collections also improved and grew by around 28% in FY15.
Sunteck did not launch any project in FY15. It plans to launch two projects in FY16 and await clariy from the management on guidance of launches and sales.