SUNTECK REALTY Announces Quarterly Results (2QFY20); Net Profit Down 44.5%

Fri, 15 Nov

SUNTECK REALTY has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

SUNTECK REALTY Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	1,803	1,746	1,347	-22.8%	-25.3%
Other income	Rs m	172	46	62	35.2%	-64.1%
Turnover	Rs m	1,976	1,792	1,409	-21.3%	-28.7%
Expenses	Rs m	1,023	1,138	933	-18.0%	-8.8%
Gross profit	Rs m	780	609	414	-31.9%	-46.9%
Depreciation	Rs m	5	7	8	7.3%	56.1%
Interest	Rs m	104	91	114	24.9%	10.3%
Profit before tax	Rs m	844	556	354	-36.3%	-58.0%
Tax	Rs m	305	202	55	-72.8%	-82.0%
Profit after tax	Rs m	539	354	299	-15.5%	-44.5%
Gross profit margin	%	43.3	34.9	30.7
Effective tax rate	%	36.1	36.3	15.5
Net profit margin	%	27.3	19.8	21.2

Year-on-Year Performance:

• The company's operating income during the quarter fell 25.3% on a year-on-year (YoY) basis. The expenses were down by 8.8% YoY during the same period.
• The company's operating profit declined by 46.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 30.7% in 2QFY20 as against 43.3% in 2QFY19.
• Depreciation charges increased by 56.1% and finance costs increased by 10.3% YoY, respectively.
• Other income declined by 64.1% YoY during the quarter.
• Net profit for the quarter declined by 44.5% YoY. Net profit margins during the quarter declined from 27.3% in 2QFY19 to 21.2% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 22.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 18.0% QoQ during the same period.
• The company's operating profit declined by 31.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 30.7% in 2QFY20 as against 34.9% in 1QFY19.
• Net profit for the quarter declined by 15.5% QoQ, while net profit margins increased from 19.8% in 1QFY19 to 21.2% in 2QFY20.

To see how SUNTECK REALTY has performed over the last eight quarters,please visit here.

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SUNTECK REALTY Share Price Performance

Over the last one year,SUNTECK REALTY share price has moved up from Rs 347.7 to Rs 403.5, registering a Gain of Rs 55.9 or around 16.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,124.8 (down 0.2%). Over the last one year it has moved up from 1,724.8 to 2,124.8, a gain of 400 points (up 23.2%).

Overall, the S&P BSE SENSEX is up 15.3% over the year.

Current Valuations

At the current price of Rs 403.5, the price to earnings (P/E) ratio of SUNTECK REALTY stands at 28.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.8 times.