Puravankara reduces debt by Rs 450 crore

Realty player Puravankara today said it has reduced its debt by Rs 450 crore bringing down the net debt-equity ratio to 0.74 from 0.94 as on December 31 2016.
"The debt reduction of Rs 450 crore will strengthen the company's capital structure and balance sheet. The net-debt to equity ratio will now become 0.74 from the December 31 2016 level of 0.94," the company said in a statement issued here.
The impact of this debt reduction will lead to around Rs 50 crore being saved on an annually, which will have a positive impact on the profits of the company.

"Puravankara had received Rs 475 crore from the exit of investment of land in Raidurg Village, Panamaktha, Hyderabad including the sale of shares in its three wholly owned subsidiaries. The debt reduction is being accelerated with the proceeds from this exit," it said.
Commenting on the development, company's managing Director Ashish Puravankara said, "the company is poised on a cusp of exponential growth, with the continuing commitment that we have made to our stakeholders, we intend to leverage our strengths and our brand on the expressway of growth."
He said the debt reduction plan is in line with the strategy of the organisation to unlock value for the stakeholders and create opportunities for growth.

"This enables the company to stay on our growth trajectory and sustain successfully, especially in the upcoming RERA environment where we anticipate several lucrative prospects coming our way," Puravankara said.
The company has 30.72 million sq ft of projects which are completed and delivered and 24.92 million sq ft of projects which are under development.
The total land assets of the company is 75 million square feet.