I’m not extremely well versed with accounting and so this question may sound silly, but request someone to please clarify.
How is it that the reserves of Sunteck have grown from 182 crores in 2009 to 2800 crores today, when the total cumulative net earnings have been much lower?
An example: in 2014 the reserves were 536 crores and in 2015 the reserves went up to 1458 crores. The net earnings in 2015 however were just 68 crores. How does this happen?
Again apologies if it is a silly question, pardon my ignorance.
Source: Screener
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Please refer to the consolidation financial statements in the Annual Report and you will get the details about the Reserves and Surplus.
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It summarizes the points we just discussed above and other than that has some fresh updates from Chairman Mr. Kamal Khetan
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What I could understand after reading few articles and management commentaries in the news is the below narrative:
Lower supply in the short to near term because of few new launches, credit unavailablility for cos that have bad execution record putting further downward pressure on supply, it seems like RERA, GST, NBFC crisis is still in the memory of the loan providers that’s why they are prefering branded players with visible cashflows.
Similarly customers are prefering cos with good execution record and read to move in houses.
Apart from housing - demand for warehousing may see sharp uptick post lockdown’s lifted, commerical real estate may also see good traction in the near term because cos need to have more office space to maintain social security distances at workplace.
This was what I could understand.
For core real estate play, reduced supply in short to near term may be really beneficial for companies with very high ready to move in inventories.
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Reliance Retail in Naigaon and Now Dmart in Goregaon
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9776417c-83be-4465-8728-2cda6ac04374.pdf (bseindia.com)
Q4 FY21 results. Dividend of 1.5 per share declared. Promoter group taking a cut in dividend.
Revenue multiples higher this quarter YoY but margins look squeezed in this quarter due to higher cost of construction.
Disclosure - Invested
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I think margins will remain under pressure for the quarters to come due to high inflation.
But on the other hand, this should consolidate the market.
Earnings call today at 4 PM
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Dividend is Rs. 1.5 per share and not 1.75.
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I was actually interested in real estate sector because of the growth these companies might see due to consolidation. Real estate companies follow different accounting. Can someone help me learn about what metrics to track in this sector ? How to see cashflows in this sector ?
If someone has subscription to business standard, please summarize it for us if possible.
Many thanks.
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Mohanish Pabarai reduced 2% holding in Sunteck.
Do you guys see any concern in this company for the long term investment?
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The result is out QoQ revenue dip ~50%.
Pre-sales is the more relavant metric to gauge topline performance as revenues were bound to be lower with the lockdowns in Q1 (revenue is recognized as % completed method). That said, pre-sales are also down about 50% from Q4 FY21. Q3 FY 21 prepsales were also quite high.
So the momentum seen post the first lockdown has slowed down in this quarter. Not sure if this is attributable entirely to the lockdown, or if the previous quarters increase was due to pent up demand. We’ll get more details from the concall.
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Thanks! This is helpful…
Sunteck has had a quite a run up recently though. Wondering whether it is too much too fast.
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