Suraj Estate Developers Ltd Share Price – NSE  / BSE

Realty, Small Cap

Suraj Estate Developers will hold a meeting of the Board of Directors of the Company on 8 January 2025.

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The entire consideration along with stamp duty and registration charges has been fully paid. The project envisions the development of a commercial building with an estimated RERA carpet area of 1.03 lakhs square feet with a gross development value (GDV) of around Rs 525 crore.

The newly acquired land parcel is strategically positioned adjacent to a previously acquired vacant plot, intended for the development of a commercial building. The amalgamation of these two plots, will enable the development of a composite commercial building with larger floor plates to meet the growing demand of corporate clients.

Rahul Thomas, promoter and whole-time director of Suraj Estate Developers, said, “This acquisition marks a significant milestone in our efforts to expand our footprint in Mumbai’s rapidly growing commercial real estate sector. With the strategic positioning of the newly acquired land, we are well-placed to develop high-quality, build-to-suit office spaces tailored to meet the specific needs of corporate clients. This move not only reinforces our commitment to addressing the rising demand for modern, flexible office spaces but also underscores our vision of offering integrated solutions in both residential and commercial real estate sectors.”

Suraj Estate Developers has been involved in the real estate business since 1986 and the company develops real estate across the residential and commercial sectors in South Central Mumbai region. The company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market.

The company has reported 88.1% jump in consolidated net profit to Rs 31.8 crore in Q2 FY25 from Rs 16.9 crore posted in Q2 FY24. Total income rose by 5.7% year-over-year (YoY) to Rs 109.6 crore in the second quarter.

The counter shed 0.87% to end at Rs 673.30 on Wednesday, 4 December 2024 on the BSE.

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Net profit of Suraj Estate Developers rose 87.68% to Rs 31.83 crore in the quarter ended September 2024 as against Rs 16.96 crore during the previous quarter ended September 2023. Sales rose 5.44% to Rs 109.09 crore in the quarter ended September 2024 as against Rs 103.46 crore during the previous quarter ended September 2023.

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Total income rose by 5.7% year-over-year (YoY) to Rs 109.6 crore in the second quarter.

EBITDA improved by 1% to Rs 64 crore in Q2 FY25 over Q2 FY24. EBITDA margin expanded to 58.4% in Q2 FY25 as compared with 61.1% in Q2 FY24.

The company’s pre-sales grew by 26% YoY in Q2 FY25 and by 13% in H1FY25 despite a seasonally weak quarter. Realizations grew 10% YoY in Q2 FY25 and 12% YoY in H1 FY25 on account of price hikes and better product mix.

Collections grew 89% YoY in Q2 FY25 and 46% YoY in H1 FY25 on account of increased sales and collection from commercial project CCIL. 40.9% of revenue came from sales of luxury units and 59.1% of revenue was from sales of value luxury units for Q2 FY25.

The company has set FY25 pre-sales guidance at Rs 850 crore, comprising Rs 650 crore from residential and Rs 200 crore from commercial segments.

In October 2024, the company issued 34,12,277 equity shares at Rs. 714 per share, raising Rs 243.64 crore. Additionally, the board approved the allotment of 13,30,000 fully convertible warrants at Rs 750 per warrant, totalling Rs. 99.75 crore, securing an aggregate sum of Rs 343 crore.

Rahul Thomas, executive director, 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 utilization of IPO proceeds for debt repayment and reduced blended average cost of borrowings. These favorable financial conditions have contributed to strengthening our bottom line and overall financial stability.

Additionally, our successful Rs 343 crore raise 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.

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.”

Suraj Estate Developers has been involved in the real estate business since 1986 and the company develops real estate across the residential and commercial sectors in South Central Mumbai region. The company has a residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel, which are sub-markets of the South-Central Mumbai micro market.

The scrip fell 2.89% to end at Rs 575.50 on the BSE yesterday.

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