India’s one of the most trusted and admired real estate developers, Puravankara Limited declared financial results for the second quarter (Q2FY24) ending September 30, 2023. The company recorded sales of INR 1,600 crores, an increase of 102% Y-o-Y. Sales volume for the quarter stood at 2.01 msft, up by 89% Y-o-Y with a strong collection of INR 879 crores.
Average price realization increased by 7% to INR 7,947/sq ft during the quarter, up from INR 7,396/sq ft in Q2FY23. Their operating cash inflows for H1FY24 stood at INR 1,756 crores and revenue from projects stood at INR 368 crores. Recently, the company launched one new project, Provident Ecopolitan (Bengaluru), and new phases for Purva Park Hill (Bengaluru) and Purva Windermere (Chennai), totaling 2.09 msft.
Regarding this limitless success, Ashish Puravankara, Managing Director, Puravankara Limited quoted, “While the residential real estate industry grew by 6% on a Y-o-Y basis, Puravankara Group delivered a phenomenal performance in the second quarter resulting in an exponential increase of pre-sales by 102% Y-o-Y, driven by our strong brand androbust product portfolio. The collections grew by 70%, amounting to INR 879 crores on a Y-o-Y basis,a testimony to the company's strong execution capabilities, commitment to customer satisfaction, and demand for high-quality products.We remain confident in maintaining our growth momentum in the coming quarters. With a robust pipeline of new launches, we are well-positioned to occupya higher market share.”
Their total revenue from operations recognised, including other income for the H1FY24, is INR 717 crores by handing over 927 units with an area of 1.01 msft, which resulted in INR 130 crores Gross Profit. The expenses related to sales and marketing costs for ongoing and new launches, along with G&A expenses of INR 168 crores incurred on account of planned growth, resulted in a net loss of INR 29 crores after tax in H1FY24. They have planned the delivery of approximately 2,500 units (area of approx. 2.5msft) in H2 FY24.
The total area sold at 2.01msft(+89% Y-o-Y), the sales value stood at INR 1,600crores(+102% Y-o-Y), and the Sales realization stood at INR 7,947/sft (+7%Y-o-Y). Total revenue from projects stood at INR 368crores (+54% Y-o-Y), EBITDA stood at INR 98crores (69% Y-o-Y), total loss stood at INR 11crores, reduced by 45% compared to INR 21 crores for the same quarter last year on increased delivery, showing improvement in revenue booking.
The balance collections from sold units (completed + ongoing) in all launched projects stood at INR 3,636crores. Total value of unsold inventory, including new launches in Q2FY24, stood at INR 5,581crores and total estimated surplus from all completed and ongoing projects is INR 6,455 crores. While their net debt stood at INR 1,992crores, and the netdebt-to-equity ratio stood at 1.01 for Q2FY24. The weighted average cost of debt stood at11.61%as of 30thSeptember 2023. With increasing economic activity and a revised growth projection of 6.3% by the IMF (up by 0.2%), they firmly believe that Puravankara is well-positioned to capitalize and gain market share in a continuously consolidating real estate market.
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