Puravankara net profit up 75% on rise in finished home prices

News Posted - 2010-02-03

Puravankara reports three-fold rise in net profit

Buoyed by an 80-per-cent jump in revenues, real estate developer Puravankara Projects posted a three-fold rise in net profit for the fourth quarter of 2009-10.

Net profit rose to Rs 43.73 crore as against Rs 14.58 crore for the corresponding quarter of the last financial year. Revenues stood at Rs 122.81 crore (Rs 67.92 crore).

Sales at the first two projects of the subsidiary, Provident Housing, have been most encouraging and “with construction on at full swing at both locations, the coming quarters will reflect the revenues from Provident Housing in a more significant manner,” said a company press release. Operating profits for the quarter went up about 3.3 times to Rs 33.85 crore (Rs 10.22 crore).

Affordable housing

Commenting on the results, Mr Ravi Puravankara, Chairman and Managing Director, said that the company would move its affordable housing plans forward and is on course to deliver over 60,000 homes in this space in the next six to seven years.

Mr Jackbastian K. Nazareth, Chief Operating Officer, Puravankara Projects, said that the company did not launch any new projects last year, and the existing projects were brought to the completion stage.

“Buyers today want to move into ready apartments, and we were able to sell 62 per cent of our inventory,” he added.

Significantly, the company's cost of revenue has also gone up by 70 per cent during the quarter to Rs 78.42 crore (Rs 45.92 crore), while material and contract costs were up 71 per cent at Rs 47.07 crore (Rs 27.47 crore).

The area currently under development is 19.01 million sq. ft. with projects spread across Bangalore, Chennai, Hyderabad, Kochi and Kolkata. There are 13 ongoing residential projects, 11 of Puravankara Projects and two of Provident Housing.

The and-bank, which was augmented through acquisitions in Chennai and Bangalore, currently stands at 125.39 million sq ft of developable area.

Annual results

For the financial year ended March 31, 2010, the company posted net profit of Rs 145.32 crore (Rs 144.41 crore), while revenues were Rs 478.36 crore (Rs 444.90 crore).

The board of directors has recommended a final dividend of Re 1 per equity share of par value of Rs 5 each.

Source: The Hindu Business Line 30/4/10

Real estate company, Puravankara Projectshas posted a 75 per cent increase in net profit to Rs 30.49 crore during the third quarter of the current fiscal on the back of an increase in the prices of finished homes sold during the quarter.

“Recession during the last year has in fact helped us to consolidate our operations,” the Puravankara Director, Mr Ravi Ramu, told newspersons.

Revenues for the company, however, declined 8.55 per cent to Rs 73.19 crore during the third quarter compared with the same period last year. An official with the company said during the next two to three quarters, the company will build projects of a total size of 20 million sq ft.

Mr Ramu claimed that the company's affordable housing subsidiary, Provident Housing, was the market leader in the industry.

He said the sizes of each project were getting bigger.

“We have gone to 6 million sq ft for each of the projects now,” he said.

The size of the company's land bank is about 125 million sq ft.

source : Business line 30/01/2010