Puravankara net profit rises 266% to Rs 78 crore in third quarter

A strong demand environment and timely handover of projects have led real estate major Puravankara to report a net profit of Rs 78 crore for the third quarter ended December, up 266 per cent from a year ago.

The Bengaluru-based company reported sales growth of 56 per cent to Rs 1,241 crore for the December quarter on the back of strong sales volume of 1.63 million sq ft, up 60 per cent year-on-year (Y-o-Y) with a strong collection of Rs 941 crore.

“Our focus has been on operations and delivery of units. We are expecting to continue the growth momentum in the last quarter in terms of handover. We have handed almost about 500 units in this quarter. The speed at which we are handing over units is essentially what is driving our sales revenue and profit,” said Abhishek Kapoor, Group Chief Executive Officer, Puravankara.

Operating cash inflows for the first nine months (9M) of financial year 2023-24 (FY24) stood at Rs 2,826 crore, a 35 per cent increase from FY23. Operating surplus for 9M FY24 stood at Rs 965 crore, up 101 per cent Y-o-Y. EBITDA stood at Rs 218 crore.

“Complementing our operational success, we have also reduced our net debt by Rs 251 crore with significantly improving collections and cash balance. The company is well poised for investments in new acquisitions across regions, with increased liquidity and cash flows enhancing the growth momentum. We are excited and encouraged with our foray into the Mumbai redevelopment market with our first project of approximately 6 lakh sq ft and a potential Gross Development Value (GDV) of Rs 1,500 crore. We are actively pursuing 12 opportunities and are shortlisted with advance discussions ongoing with four societies,” said Ashish Puravankara, Managing Director, Puravankara.

Puravankara recorded strong sales performance in 9M FY24 with a sales value of Rs 3,967 crore, an increase of 89 per cent compared to Rs 2,100 crore in 9M FY23. Customer collections increased to Rs 2,515 crore compared to Rs 1,597 crore in 9M FY23, indicating a jump of 57 per cent Y-o-Y.

“The first nine months of FY24 have seen exceptional pre-sales, marking a strong growth of 89 per cent Y-o-Y. Achieving our highest-ever collection of Rs 2,515 crore for 9M FY24 and Rs 941 crore for Q3 FY24 is a testament to our significant progress in construction while affirming our commitment to excellence in quality,” said Puravankara.

Puravankara launched two projects during the third quarter – Provident Deansgate in Bengaluru and Purva Soukhyam in Chennai. These projects accounted for a total of 3.76 million sq ft of saleable area.

“For the coming quarter, we are focused on launches, pre-sales and handover. We expect to see the same growth momentum we have witnessed in the last three quarters. Our plan is now to start investing and deploying capital for new projects. We are also focused on new pipeline and business development. Our main objective is to plan ahead for the next year,” said Kapoor.

Puravankara declared its earnings after market hours on Tuesday. Ahead of the earnings, its shares were down 6 per cent to close at Rs 220.90 on the Bombay Stock Exchange (BSE).