💰 Financial Performance

Revenue Growth by Segment

Financing activities (100% of revenue): Total income grew 17.4% YoY to INR 33.27 Cr in FY25 from INR 28.34 Cr in FY24. Interest income grew 5.6% YoY to INR 27.83 Cr.

Geographic Revenue Split

100% Mumbai Metropolitan Region (MMR) focus, leveraging Sunteck Realty's brand recall in urban and semi-urban areas.

Profitability Margins

Net profit ratio decreased from 37.22% to 33.87% (-8.99% variance) due to a 63.1% surge in finance costs. Return on Equity (ROE) fell from 5.86% to 5.01% (-14.57% variance).

EBITDA Margin

Return on Capital Employed (ROCE) improved from 12.71% to 13.28% (+4.45% variance), indicating better core profitability despite higher borrowing costs.

Capital Expenditure

INR 11 Cr invested in wholly-owned subsidiary Starteck Housing Finance Private Limited to secure a housing finance license.

Credit Rating & Borrowing

BWR rating withdrawn in July 2021. Total borrowings of INR 87.31 Cr include an overdraft limit of INR 46.49 Cr, term loans of INR 31.61 Cr, and group loans of INR 9.21 Cr.

⚙️ Operational Drivers

Raw Materials

Capital/Debt (Finance Cost: INR 18.99 Cr, representing 57% of total income).

Import Sources

Not applicable for financial services.

Key Suppliers

Sunteck Realty (Promoter support), various banks for overdraft and term loan facilities.

Capacity Expansion

Not applicable for financial services; focus is on scaling the loan book balance sheet.

Raw Material Costs

Finance costs increased 63.1% YoY to INR 18.99 Cr from INR 11.64 Cr, driven by increased leverage to grow the lending portfolio.

Manufacturing Efficiency

Return on Investment (ROI) decreased from 8.31% to 5.58% (-32.93% variance) due to increased holdings in low-coupon sovereign gold bonds.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

17.40%

Growth Strategy

Leveraging synergies with Sunteck Realty to target homebuyers in residential projects, expanding into mid-income and affordable housing segments, and scaling MSME lending.

Products & Services

Retail home loans, loans to small corporates/MSMEs, and corporate financing.

Brand Portfolio

Sunteck (synergy), Starteck Finance.

New Products/Services

Housing finance via Starteck Housing Finance Private Limited (license applied for).

Market Expansion

Focus on 'Emerging India' and urban/semi-urban areas within the Mumbai Metropolitan Region.

Strategic Alliances

Strategic synergy with Sunteck Realty for captive customer acquisition.

🌍 External Factors

Industry Trends

Favorable outlook for mid-income and affordable housing segments in the medium term, supporting NBFC growth in retail lending.

Competitive Landscape

Competes with other ND-NSI NBFCs and Housing Finance Companies (HFCs) in the MMR region.

Competitive Moat

Durable moat through captive customer sourcing from Sunteck Realty, reducing customer acquisition costs compared to independent NBFCs.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and real estate demand in the Mumbai Metropolitan Region.

Consumer Behavior

Increasing demand for affordable housing and simplified retail finance solutions in semi-urban areas.

Geopolitical Risks

Low, as operations are entirely domestic and focused on the Indian housing market.

⚖️ Regulatory & Governance

Industry Regulations

Regulated by RBI as a Non-Deposit taking, Non-Systemically Important (ND-NSI) NBFC; compliant with Ind AS 34.

Taxation Policy Impact

Effective tax rate appears low; standalone PBT of INR 11.17 Cr resulted in PAT of INR 10.04 Cr.

Legal Contingencies

Not disclosed in available documents; auditors issued an unmodified opinion on internal financial controls.

⚠️ Risk Analysis

Key Uncertainties

Nascent stage of operations and limited experience in the financial services space pose execution risks.

Geographic Concentration Risk

100% revenue concentration in the Mumbai Metropolitan Region (MMR).

Third Party Dependencies

Heavy reliance on Sunteck Realty promoters for capital support and resource raising.

Credit & Counterparty Risk

Exposure to group companies through short-term loans and legacy portfolio delinquencies (now fully provided for).