Sunteck Realty – Quality Real Estate Company

The latest Rating Update has few useful points:

• Significant improvement in bookings; recent and upcoming launches to drive the momentum: As on September 30, 2023, the company has booked more than 70% of the total revenue potential of ongoing projects. Among ongoing projects, the company has sold more than 80% of area in three projects: Maxx World- Naigaon, Sunteck City-4th Avenue, and 2nd Avenue Pinnacle, Goregaon. It has sold more than 60% area in two projects: Sunteck One World and Sunteck Skypark and close to 40% in the recently launched project: Sunteck Beach Residency- Vasai.

• Strong committed receivable coverage ratio indicating low funding risk and healthy cash flow visibility: The company has achieved substantial booking level in its ongoing project portfolio, which resulted into build up of sizeable- committed receivables. As on September 30, 2023, the company has committed receivables of over ₹2,200 crore, which covers more than 120% of the balance project cost and outstanding debt. Around 10% of committed receivables pertains to completed projects which are due to be received post possession delivery; hence, there is strong cash flow visibility in the near-term. Amongst ongoing projects, three ongoing projects are in advanced stage of completion with over 70% of cost stands incurred, and three projects in the nascent stage of construction with less than 30% of cost incurred. As on September 30, 2023, SRL has incurred close to 60% of project cost, reflecting intermediate stage of execution. While residual execution risk exists, adequacy of committed receivables indicate a low level of funding risks.