Suraj Estate Developers FY24 Results: PAT Soars 111%; Total Income Surges 35%

Leading South Central Mumbai (SCM) real estate company Suraj Estate Developers Limited, which specializes in rehabilitation projects, released its audited financial results for the quarter and full year that ended on March 24. The company's total income jumped from Rs 307.9 Cr in FY23 to Rs 415.7 Cr in FY24, a 35% YoY growth. The company's EBITDA was Rs 236.4 Cr in FY24 compared to Rs 153.2 Cr in FY23, representing 54.3% growth in FY24.
Suraj Estate Developers said its net profit reached Rs 67.5 Cr in FY24 which was Rs 32.0 Cr in FY23, representing a growth of 110.9% YoY.

The company's gross debt was Rs 425.57 Cr as of 31st March 2024 which was Rs 593.09 Cr as of 31st March 2023 whereas the net debt of Suraj Estate Developers reached Rs 315.34 Cr as of 31st March 2024 compared to Rs 565.07 Cr as of 31st March 2023.

For a total payment of Rs. 33.10 crores, the firm recently acquired a freehold block of land spanning about 1,073.42 square metres, located off Lady Jamshedji Road, Mahim (West), Mumbai. Commenting on the project, the company said in a statement that "The project is a redevelopment project which entails redevelopment of 7 tenants/occupants who have vacated their respective premises, and the plot is rendered vacant. After deducting the FSI required for rehabilitating the said tenants / occupants of the property and surplus area to be handed over to MHADA, the estimated balance carpet area available for sale is about 2,787 square meters (30,000 sq. ft.) with a GDV of Rs. 120 crores."

Mr. Rahul Thomas, Executive Director, Suraj Estate Developers, said, "The residential real estate market in India soared in Q1 of calendar year 2024, fueled by persistent high demand. High-end and luxury segments led the charge, while the mid-range maintained its dominance in launches. With infrastructure boom, improved connectivity and a notable 18% Y-o-Y absorption rate increase, there's a 31% Y-o-Y drop in unsold inventory, presenting growth opportunities for industry players like us."

"FY24 was a year of strong performance for us where we achieved a remarkable 35% increase in sales over FY23 and an 111% growth in Profit After Tax as compared to the previous year.Our effective cost control measures led to a growth of 54% in our EBITDA thereby improving our margins by ~710 bps. Operationally during the year, we sold 1,07,136 sq ft translating to sales of Rs 483 crores. Collections for the year stood at Rs 316 crores. Focus during the year was on selling luxury projects which reflects in improved realisations of Rs 45,074 per sq ft in FY24 vs Rs 42,420 per sq ft in FY23," Rahul Thomas added.

"The past quarter witnessed an amicable resolution of a longstanding litigation, signifying a significant milestone for our company and reinforcing our dedication to excellence in the real estate domain. This favourable resolution not only marks a crucial achievement but also unlocks a sales potential of Rs 350 crores for us. Furthermore, the projected redevelopment of five buildings is expected to generate an additional Rs 225 crores, further enhancing our company's financial outlook. We at Suraj continue to express unwavering commitment to continue delivering world-class luxury projects. We stand poised at the threshold of immense opportunity, fuelled by our optimism for growth," he further commented.

Since 1986, Suraj Estate Developers has been a part of the real estate industry, developing properties in the South Central Mumbai region for residential as well as commercial purposes.