Puravankara Projects, the Bangalore-based real estate developer, has reported a 70 per cent drop in net profit at Rs 17.5 crore for the third quarter ended December 31, 2008 as against Rs 56.5 crore for the corresponding quarter last year. Net sales dipped 46 per cent to Rs 80 crore as the downturn forced people to go slow on purchasing properties.
Compounding the drop in sales, Puravankara Projects had to writedown Rs 13.18 crore as a one-time direct cost of completed properties held for sale.
Ashish Puravankara, director, Puravankara Projects, said, "These are trying market conditions with customers essentially preferring to hold their home purchases in the present economic environment. However, we have maintained a relatively healthy liquidity and financial position."
The company has a debt of Rs 757 crore and leveraged 0.56 per cent. The land bank stands at a little over 125 million square feet of developable area.
