24, February, 2024
HomeBusinessSuraj Estate Developers Reduces Debt by 38% and Achieves 2.4% Growth in Q3 Income

Suraj Estate Developers Reduces Debt by 38% and Achieves 2.4% Growth in Q3 Income

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Suraj Estate Developers Ltd, a key player in the South Central Mumbai (SCM) real estate market, specializing in redevelopment projects, has successfully trimmed its debt by 38% to Rs 340.86 crore in the current quarter, as stated in a company announcement on Tuesday.

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This notable reduction comes after the company raised approximately Rs 400 crore through an initial public offering (IPO) in December last year, officially listing on exchanges on December 26.

The realty player strategically utilized the IPO proceeds to repay high-cost debt, totaling Rs 285 crores in January 2024. Additionally, Rs 23.5 crores of unsecured debt was repaid from gross collection proceeds, leading to reduced interest costs and a bolstered balance sheet. Rahul Thomas, Executive Director of Suraj Estate Developers, anticipates the positive impact of reduced interest costs to be evident from the fourth quarter of FY24 onwards.

In terms of financial performance, Suraj Estate Developers reported a 2.4% sequential growth in total income, reaching Rs 106.15 crore in the December quarter, compared to Rs 103.70 crore in the preceding quarter. The profit after tax for the third quarter was recorded at Rs 16.57 crore, slightly down from Rs 16.93 crore in the previous quarter.

For the nine months ending December 2023, the total income amounted to Rs 284.5 crore, with a net profit of Rs 59 crore for the same period in FY24. In FY23, the company reported a total income of Rs 247.1 crore and a profit of Rs 38 crore.

The December quarter also witnessed Suraj Estate Developers reporting a substantial increase in the sales area volume, reaching 35,537 sq ft, compared to 19,397 sq ft in the September quarter. The sales value surged to Rs 142.51 crore in the December quarter, up from Rs 85.22 crore in the September quarter.

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Adding to its achievements, the company launched a new luxury residential project named ‘Suraj Lumina’ at Veer Savarkar Marg, Mahim (west), Mumbai, during the December quarter. The gross development value anticipated from this project is close to Rs 100 crore, with an expected completion date of December 2028.

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