Suraj Estate Developers Pares Debt By 38%; Posts 2.4% Growth In Q3 Income

Suraj Estate Developers Ltd reduced debt by 38% to Rs 340.86 crore in Q3, using IPO proceeds to repay high-cost debt.

<div class="paragraphs"><p>(Source:&nbsp;<a href=";utm_medium=referral&amp;utm_content=creditCopyText">CHUTTERSNAP</a> on <a href=";utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)</p></div>
(Source: CHUTTERSNAP on Unsplash)

Suraj Estate Developers Ltd, a real estate player focused on South Central Mumbai market with specialisation in redevelopment projects, has pared its debt level by 38% to Rs 340.86 crore in the current quarter, a company statement said on Tuesday.

The company had a debt level of Rs 554.3 crore as of Sept. 30, 2023.

“Suraj Estate Developers repaid high-cost debt to the tune of Rs 285 crores in the month of January 2024 using the IPO proceeds,” the company said.

“An additional Rs 23.5 crores of unsecured debt is repaid from gross collection proceeds, resulting in lower interest costs and strengthened balance sheet. We shall see this benefit of reduced interest costs from Q4FY24 onwards,” Rahul Thomas, Executive Director, Suraj Estate Developers, said.

The realty player raised around Rs 400 crore through an initial public offering in December last year. It was listed on exchanges on Dec. 26.

Suraj Developers reported a sequential 2.4% growth in total income to Rs 106.15 crore in the December quarter compared to Rs 103.70 crore in the September quarter.

The profit after tax was at Rs 16.57 crore in the third quarter against 16.93 crore in the previous quarter.

Total income for the nine months ended December 2023 stood at Rs 284.5 crore. Net Profit for the nine months of FY 24 stood at Rs 59 crore. The company reported a total income of Rs 247.1 crore in FY23 and a profit of Rs 38 crore.

The company reported a sales area volume of 35,537 sq ft in the December quarter against 19,397 sq ft in the September quarter.

The sales value was Rs 142.51 crore in the December quarter against Rs 85.22 crore in the September quarter.

The company launched a new luxury residential project ‘Suraj Lumina’ at Veer Savarkar Marg, Mahim (west), Mumbai, in the December quarter. The gross development value estimated from the project is close to Rs 100 crore. The project is expected to be completed by December 2028.