Dear Shareholders,
The year gone by has been momentous for us on many fronts. While the Indian real estate sector witnessed
many positive and disruptive changes, we continued to deliver a resilient operating performance and also set
the stage for the next round of your company’s growth.
As the varied indirect taxes regime was replaced by a uniform GST regime and the state level RERA
framework got implemented, your company was ready to adopt them across the value chain in a timely and
rightful manner. Such reforms are structural changes which are providing long term growth and consolidation
opportunities for organised developers like us. As the regulatory changes were taking shape, your company
focused on enhancing the sales at our ongoing projects instead of new launches. However, simultaneously your
company was putting together the foundation in place for its plans to scale up across the market
segments.
We successfully raised capital during the year, setting the stage for our next round of growth by
benefiting from attractive acquisition opportunities including distressed projects. We also capitalised on
our strong brand by acquiring a 100 acres project in Mumbai Metropolitan Region (MMR), under the aspirational
segment and the asset light JDA model. Through this project we have diversified our business across the
pricing spectrum, from uber-luxury to affordable and at the same time being true to defining luxury living
for all.
During the year, our EBITDA margins increased by almost 500 bps to 42%, and we posted a record PAT of Rs
2,135 Million. We also made multi-fold progress on further strengthening our balance sheet, with reduction in
average cost of debt, decrease in absolute debt levels and an improvement in the long term credit rating to
AA-. In terms of operational performance, we saw the momentum pick-up through the quarters for both our
completed and under execution projects. Additionally, we completed our project Signia High in Borivali and
initiated the handing over of apartments. We also commenced construction at our commercial project Sunteck
Icon at BKC junction and our residential project Gilbert Hill at Andheri (W) during the year. Today,
construction is happening at full pace at all our six ongoing projects. Our BKC projects saw improved
traction and notable margin improvements, which gives a glimpse of the value that this inventory can
potentially create. Our project in Oshiwara District Centre (ODC), Sunteck City continues to see significant
improvement in infrastructure and is also poised to create huge value for our stakeholders, just like at
BKC.
I would like to thank our investors for their constant support to us which led to your company receiving
the best standout Investor Relations (IR) award in the mid-cap category from the IR Society of India
recently. I would also like to thank our Board of Directors, customers, partners, associates and shareholders
for their confidence in us which helps fuel the momentum towards a brighter future for Sunteck. We are excited
about the times ahead and aim to benefit from the upcoming opportunity in India’s real estate sector,
thereby scaling up our business and creating huge value for all our stakeholders.
Warm regards,
Kamal Khetan
Chairman and Managing Director
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12.3 (3.14%)