Mumbai-based Sunteck Realty Limited reported a return to profitability in the final quarter of FY21, reflecting improving residential demand and stronger cash collections across its Mumbai Metropolitan Region portfolio. The developer posted a consolidated net profit of Rs 10.4 crore for the quarter ended March 2021, supported by a sharp rise in quarterly income.
Total income for the March quarter more than doubled year-on-year to Rs 194.67 crore, compared with Rs 91.17 crore in the same period a year earlier. For the full financial year, income rose to Rs 630.84 crore from Rs 580.20 crore in FY20, indicating a gradual stabilisation in housing transactions despite pandemic disruptions. Operationally, the company reported pre-sales of Rs 371 crore in the fourth quarter, marking a 6 per cent sequential increase. The mid-income housing segment led momentum, particularly projects in Goregaon West within the MMR, where demand for relatively affordable urban housing remained resilient. Collections rose 27 per cent quarter-on-quarter and 83 per cent year-on-year to Rs 321 crore in Q4. For FY21, total collections reached Rs 780 crore, the highest recorded by the company in a single financial year. Urban housing analysts say the numbers reflect a broader structural shift that emerged during the pandemic: homebuyers gravitating towards organised, branded developers with execution track records. Industry consolidation has accelerated, with smaller developers facing liquidity pressures and regulatory compliance burdens. Larger firms with stronger balance sheets have used the period to secure new land parcels and joint developments.
During the year, Sunteck Realty expanded its project pipeline across Vasai, Vasind and Borivali in the MMR. Such micro-markets have gained traction due to improving road connectivity and relatively lower entry prices compared to central Mumbai. The strategy aligns with a wider trend of decentralised urban growth, where peripheral zones absorb population pressures while remaining linked to employment hubs. From a financial perspective, improved collection efficiency reported at approximately 76 per cent enabled the company to generate positive operating cash flows of Rs 286 crore in FY21. This facilitated a reduction in debt levels by Rs 233 crore, strengthening its leverage position at a time when funding access remains uneven across the real estate sector. The results also underline the growing importance of in-house construction capability and disciplined sales management in navigating volatile cycles. Developers that control execution timelines and maintain cost oversight are better positioned to deliver projects within regulatory frameworks such as RERA, thereby reinforcing buyer confidence.
As Mumbai and its surrounding region recalibrate post-pandemic housing demand, sustained collection performance and prudent expansion will determine whether FY21 marks a cyclical rebound or the beginning of a more durable recovery in organised residential real estate.
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Mumbai Sunteck Realty posts FY21 profit rise
