Bengaluru (Karnataka) [India], February 10 (ANI/BusinessWire India): Puravankara Limited, one of India’s most trusted real estate players, announced its financial results today for the third quarter (Q3FY23) ending December 31, 2022.
1. Highest ever sale value of Rs. 796 Cr. for Q3 of any financial year since inception
2. Strong customer collection of Rs. 621 Cr. for Q3FY23
3. Total revenue for the quarter stood at Rs. 410 Cr., growth of 67 per cent Y-o-Y
4. PAT for the quarter stood at Rs. 21.29 Cr.
Commenting on the company’s performance, Ashish Puravankara, Managing Director, Puravankara Limited, said, “We have recorded the highest ever sales booking of Rs. 2,100 Cr. in the first nine months of the financial year. This outstanding result was supported with the launch of seven new projects in 9MFY23, as well as the continuing interest by home buyers in our ongoing projects.”
On Puravankara’s future plans he said, “We will continue to work towards expanding our market share, and we are excited to announce that in Q3FY23 the group has achieved increased revenue from projects by 77 per cent, increased collection from operations by 87 per cent from construction and delivery against the similar quarter in the previous year. This is supported by increased sales and new launches of over 4.11 msft in 9MFY23 with the last quarter of the current financial year adding another 2.17 msft. Our per Sq. Ft. of debt on under construction area has reduced by 49 per cent from Rs. 2,524 to Rs. 1,291 over the last four years.
Our focus continues to be on the customer with our ‘You philosophy’, and the results are a testament to the team’s commitment, anchored by Puravankara’s value loads of quality, trust, and customer experience.”
Highlights
Operational Highlights for Q3FY23
– Area sold stood at 1.02 msft (+3 per cent Y-o-Y)
– Sales value stood at Rs. 796 Cr. (+20 per cent Y-o-Y)
– Sales realization stood at Rs. 7,767 per Sq. Ft. (+15 per cent Y-o-Y)
Consolidated Q3FY23 Financial Performance
– Net Revenues stood at Rs. 410 Cr. (+67 per cent Y-o-Y)
– EBITDA stood at Rs. 128 Cr. (+51 per cent Y-o-Y)
– Profit After Tax stood at Rs. 21 Cr. (1,213 per cent Y-o-Y)
Cash Flows
As on 31st Dec 2022,
– Balance collections from sold units (completed + ongoing) in all launched projects stood at Rs. 2,643 Cr.
– Total estimated value of unsold inventory open for sale stood at Rs. 5,641 Cr.
– Total estimated pending project cost to be incurred stands at Rs. 3,517 Cr.
– Total balance estimated collection from sold and unsold inventory including not open for sale is Rs. 12,582 Cr.
– Total estimated surplus after construction cost and contingency is 6,774 Cr.
Debt
The overall net debt reduced by Rs. 109 Cr., from Rs. 2,144 Cr. (as of Q2FY23) through operations, while debt increased by Rs. 100 Cr. (in Q3FY23) owing to land acquisition resulting into overall net debt of Rs. 2,135 Cr.
While the repo rate increased over a 12-month period by 225 bps, cost of debt for the group has increased by only 67 bps. The weighted average cost of debt stood at 11.18 per cent as of 31st December 2022.
Net debt to equity ratio stood at 1.09 for Q3FY23.
Outlook
In spite of the rise in home loan rates, we see sustained strong demand, particularly for grade A developers. The government’s focus on infrastructure, investment and housing for all in the budget is commendable. The steep hike in outlay for the PM Awas Yojana by 66 per cent to Rs. 79,000 Cr. will give the much-needed fillip to the affordable housing sector. Estimated growth rate of over 6 per cent for the Indian economy for the next financial year is likely to support the current momentum of sales in the real estate sector.
Notes to Editor
Upon transition to Indian Accounting Standards (Ind AS) including Ind AS 115, the Company has moved from the erstwhile percentage of completion method of revenue recognition to a completed contract method of revenue recognition. The aforesaid change in the timing of revenue recognition has brought a significant variation in the periodical financial results as the revenue is no longer recognised rateably over the project execution period but recognised upon completion of the project and handover of flats to the customers.
Disclaimer
Some of the statements in this communication may be ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the company’s operations include changes in the industry structure, significant changes in the political and economic environment in India and overseas, tax laws, duties, litigation and labour relations.
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