Puravankara shares locked in 5% lower circuit after net loss extends in Q2

Shares of Puravankara were locked in a 5 per cent lower circuit at Rs 401.40 per share after the company reported a continuing net loss in its second quarter earnings for the financial year 2024-25 (Q2FY25). 

 

Residential real estate company Puravankara reported a net loss for the September quarter at Rs 17 crore, compared to Rs 11 crore in the same period last year. The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 112 crore, up 31.76 per cent versus Rs 85 crore in the same quarter last year. Ebitda margin was down 47 basis points in Q2FY25 at 22.62 per cent versus 23.09 per cent in Q2FY24.

 

The company’s revenue for the quarter stood at Rs  495 crore, reflecting an 34.5 per cent increase from Rs 368 crore in the previous year.  

 

For the first half of the fiscal 2024-25 (H1FY25), total revenue from projects stood at Rs 1,195 crores for, up by 67 per cent from Rs 717 crores in H1FY24. Customer collections increased by 27 per cent to Rs 1,999 crores, indicating improving operating efficiency. 

 

For H1FY25 sales volume stood at 2.84 msft and sales value at Rs 2,459 crores. While revenue increased by 67 per cent to Rs. 1,195 crores in H1FY25, the company recorded a loss of Rs 5 crores for the period. 

 

The company also said that it has invested around Rs 945 crores in land, with a potential Gross Development Value (GDV) of Rs. 9,700 crores from 5.8 msft of new acquisitions.

 

As of September 30, 2024, the balance collections from sold units (both completed and ongoing) across all launched projects amounted to Rs. 4,520 crores. The total estimated surplus from these projects, including both completed and ongoing, is Rs. 7,490 crores. 

 

Regarding debt, the company’s net debt stood at Rs. 2,430 crores, resulting in a net debt-to-equity ratio of 1.29 for Q2 FY25. The weighted average cost of debt was 11.62 per cent as of September 30, 2024.

Puravankara share price history

The company’s stock has outperformed the market year to date as it has risen 114 per cent, while gaining 172 per cent in the last one year. In comparison BSE Sensex has risen 9.8 per cent year to date and 22.3 per cent in a year. 

 

The company has a total market capitalisation of Rs 9,519.19 crore. Puravankara shares are trading at a price to earnings multiple of 616.21 times and at an earning per share of Rs 0.69.