)
Realty firm Puravankara Projects will invest about Rs 1,000 crore this fiscal on construction of its housing projects and targets to cut external net debt by about Rs 250 crore by March next year on improved sales.
The Bangalore-based company is also targeting to launch 18 million sq ft of new projects this fiscal, of which 10 million sq ft will be under its affordable housing brand 'Provident'.
"We are focusing on the execution of our housing projects. We will invest about Rs 1,000 crore in the current fiscal on construction as against Rs 748 crore last year," Puravankara CEO Jackbastian K Nazareth told PTI.
The company has already invested Rs 235 crore in the first quarter of this fiscal, he added.
Stating that Puravankara has embarked on a "growth" path, Nazareth said the company would launch several projects this fiscal comprising 18 million sq ft of area.
Asked about investment on development of new projects, he said the project cost could be known closer to the launch.
On debt, the CEO said the net external debt stood at Rs 1,266 crore at the end of the June quarter and the same would be reduced to about Rs 1,000 crore by March next year.
As on June 30, Puravankara's net debt stood at Rs 1,487 crore, which included Rs 221 crore funded by the promoters.
Higher investment on construction and reduction in debt would be done through sales realisation, Nazareth said, adding that the unrecognised revenue in the books of account stands at Rs 1,355 crore.
During April-June quarter, Puravankara's sales booking rose by 36% to Rs 350 crore.
Puravankara Projects reported 15% fall in consolidated net profit at Rs 58.25 crore for the quarter ended June on higher expenses.
It's net profit stood at Rs 68.17 crore in the year-ago period.
However, the company's income from operations rose by 25% to Rs 461.62 crore in the first quarter of this fiscal against Rs 368.97 crore in the corresponding period of last fiscal.
