Piramal Sunteck plans to invest `280 crore in fiscal 2014
1 min read 16 May 2013, 10:57 PM ISTThe realty joint venture to invest in various projects, including three new premium residential projects across the country
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Mumbai: Piramal Sunteck Realty Pvt Ltd, the joint venture between Mumbai-based Sunteck Realty Ltd (SRL) and Ajay Piramal group-promoted Piramal Realty Ltd, plans to invest as much as ₹ 280 crore in fiscal 2014 in various projects including three new premium residential projects across the country, said two people familiar with the development.
Apartments in the new projects in Mulund, Navi Mumbai and Jaipur will range around ₹ 2 crore each, said one of the sources, adding the company is planning to deliver 1 million sq. ft of residential projects.
When contacted, a Sunteck Realty spokesperson declined to comment on the issue.
The equal joint venture focuses on high-end realty projects in metros and some tier-II cities in India. In the year ended 31 March, it spent ₹ 130-140 crore on projects. According to the website, the company has a portfolio with 36 million sq. ft of development potential (SRL’s share is 18 million sq. ft) of which 25.7 million sq. ft (SRL’s share is 14.6 million sq. ft) is in Mumbai.
“The backing of Piramal has helped the company to take up projects in a subdued market condition," said Deepak Shandilya, a senior director at MAPE Advisory Group Pvt. Ltd, an investment bank.
Mint reported on 14 January that Piramal Sunteck Realty was selling an ultra-luxury project, Signature Island, in the Bandra-Kurla Complex (BKC), with each flat priced at ₹ 30-50 crore. Analysts are waiting for the revenue from this project as the company had announced that the revenue from this project would start reflecting from the first (April-June 2013) quarter of fiscal 2014.
Sunteck Realty’s consolidated total revenue for the December quarter fell 10% to ₹ 416.5 crore, but profit grew from a very small base of ₹ 6.3 crore to ₹ 185.8 crore. The company will announce its fourth-quarter earnings for fiscal 2013 in the last week of May.
Edelweiss Securities Ltd, in its 21 February report, stated that Sunteck is a fairly young company with limited track record of deliveries, and the ability of the company to replicate this low-cost acquisition pattern remains to be seen.
On Thursday, shares of Sunteck Realty closed at ₹ 395.35 per unit, losing 0.49% from its previous close. The benchmark Sensex closed at 20,247 points, gaining 0.17%.
