BENGALURU: Puravankara Limited (BSE:532891) has reported record-breaking sales of INR 1,600 crores in Q2FY24, an increase of 102% YoY. The company also recorded a sales volume of 2.01 msft, up by 89% YoY, with a strong collection of INR 879 crores (+70% YoY). The average price realization increased by 7% to INR 7,947/sq ft during the quarter, up from INR 7,396/sq ft in Q2FY23.
Puravankara’s operating cash inflows for H1FY24 stood at INR 1,756 crores (+31% YoY), and revenue from projects stood at INR 368 crores (+54% YoY). The company launched one new project, Provident Ecopolitan (Bengaluru), and new phases for Purva Park Hill (Bengaluru) and Purva Windermere (Chennai), totaling 2.09 msft.
Commenting on the company’s performance, Ashish Puravankara, Managing Director, Puravankara Limited, said, “While the residential real estate industry grew by 6% on a YoY basis, Puravankara Group delivered a phenomenal performance in the second quarter resulting in an exponential increase of pre-sales by 102% YoY, driven by our strong brand and robust product portfolio. The collections grew by 70%, amounting to INR 879 crores on a YoY basis, a testimony to the company’s strong execution capabilities, commitment to customer satisfaction, and demand for high-quality products. We remain confident in maintaining our growth momentum in the coming quarters. With a robust pipeline of new launches, we are well-positioned to occupy a higher market share.“
Puravankara’s total revenue from operations recognized, including other income for H1FY24, is INR 717 crores by handing over 927 units with an area of 1.01 msft, which resulted in INR 130 crores Gross Profit. However, expenses related to sales and marketing costs for ongoing and new launches, along with G&A expenses of INR 168 crores incurred on account of planned growth, resulted in a net loss of INR 29 crores after tax in H1FY24.
Puravankara has a planned delivery of approximately 2,500 units (area of approx. 2.5 msft) in H2 FY24. The company’s net debt stood at INR 1,992 crores, and the net debt-to-equity ratio stood at 1.01 for Q2FY24. The weighted average cost of debt stood at 11.61% as of 30 September 2023.
The Indian realty sector is reflecting the resilience demonstrated by the broader economy in the face of significant challenges currently confronting the global economy. This is indicated by declining inventory. The absorption is expected to remain buoyant in the upcoming quarters, as this demand is predominantly influenced by end-users. With increasing economic activity and a revised growth projection of 6.3% by the IMF (up by 0.2%), Puravankara is well-positioned to capitalize and gain market share in a continuously consolidating real estate market.
Upon transition to Indian Accounting Standards (Ind AS), including Ind AS 115, the Company has moved from the erstwhile percentage of completion method of revenue recognition to a completed contract method of revenue recognition. As a result, revenue is no longer recognized rateably over the project execution period but is recognized upon completion of the project and delivery of flats to the customers. The aforementioned change in the timing of revenue recognition has significantly changed the periodical financial results.
Puravankara Group is one of India’s most trusted realty majors, headquartered in Bengaluru with a pan-India presence. In the last 48 years, the company has established three distinct and successful residential brands-Purva, Provident Housing Limited (PHL), and Purva Land, catering to the entire spectrum of housing and plotted development needs. As of September 30, 2023, Puravankara has completed 80+ projects measuring ~46 million sq ft across 9 cities-Bengaluru, Chennai, Hyderabad, Coimbatore, Mangaluru, Kochi, Mumbai, Pune, and Goa. The company’s total land bank is ~41 msft, and ongoing projects add up to ~29 msft.
