Bengaluru: Puravankara Limited (NSE: PURVA |
BSE:532891), one of India’s most trusted and admired real estate developers,
announced its financial results for the second quarter (Q2FY25) ending
September 30, 2024, and H1 FY25.
For H1FY25, total revenue from projects stood
at Rs. 1,195 crores for H1 FY25, up by 67% from Rs. 717 crores in H1 FY24.
Customer collections increased by 27% to Rs. 1,999 crores, indicating improving
operating efficiency. For the first half of the fiscal, sales volume stood at
2.84 msft and sales value at Rs. 2,459 crores. While revenue increased by 67%
to Rs. 1,195 crores, on account of costs related to expansion overheads, sales
and marketing expenses, the company recorded a loss of Rs. 5 crores for the period.
Operating cash inflows for H1 FY25 stood at Rs. 2,147 crores (+22% Y-o-Y).
Around Rs. 945 crores has been invested in
land, with a potential Gross Development Value (GDV) of Rs. 9,700 crores from
5.8 msft of new acquisitions. This showcases the robust pipeline of new
business being added for the company's future growth.
In the second quarter of the fiscal, customer
collections increased by 18% y-o-y to Rs. 1,033 crores. Sustenance sales grew
by 14% in H1 FY25. Price realisation in Q2 FY25 increased for Purva by 17% and
Provident by 15% y-o-y. Total revenue for the quarter grew by 36% y-o-y to Rs.
520 crores.
Commenting on the company’s
performance, Ashish Puravankara, Managing Director, Puravankara
Limited, said, “The company has made sizeable investments of Rs.
945 crores in land acquisition, with a potential GDV of Rs. 9,700 crores from
5.8 msft of new acquisitions. Increased sustenance sales for H1FY25 of 14%
y-o-y, along with increased price realisation in Q2FY25 for Purva by 17% and
Provident by 15% y-o-y, showcases the strength of the brand along with customer
appreciation of product quality and service. Operational efficiencies are
visible through our increased customer collections amounting to Rs. 1,999
crores for H1 FY25, an increase of 27% y-o-y. In the coming two quarters, the
company is focused on new launches amounting to around 12.27 msft with a potential
GDV of around Rs. 13,625 crores and project deliveries for the remaining two
quarters.”
Operational Highlights for H1 FY25:
- Area sold
stood at 2.84 msft
- Sales
value stood at Rs. 2,459 crores
- Sales
realisation stood at Rs. 8,658/sft
Consolidated H1 FY25 Financial Performance:
- Total
Revenue stood at Rs. 1,195 crores
- EBITDA
Margin stood at 24%
- Loss stood
at Rs. 5 crores.
Operational Highlights for Q2 FY25:
- Area sold
stood at 1.53 msft
- Sales
value stood at Rs. 1,331 crores
- Sales
realisation stood at Rs. 8,697/sft
Consolidated Q2 FY25 Financial Performance:
- Revenue
from projects stood at Rs. 520 crores
- EBITDA
Margin stood at 28%
Projected Cash Flows:
As of 30th September 2024:
- Balance
collections from sold units (completed + ongoing) in all launched projects
stood at Rs. 4,520 crores.
- Total
estimated surplus from all completed and ongoing projects is Rs. 7,490
crores.
Debt
Net debt stood at Rs 2,430 crores, and the
net debt-to-equity ratio stood at 1.29 for Q2 FY25. The weighted average cost
of debt stood at 11.62% as of 30th September 2024.
Outlook
The Reserve Bank of India has forecasted that
the Indian economy will grow by 7.2% in FY25, which is also reflected in the
real estate sector. For 9M CY24, office leasing activity remained robust, with
53.8 msft of absorption compared to 37.5 msft of supply and a projected
absorption of 71 msft by the end of this calendar year. This is a 29% y-o-y
jump, with Bengaluru (16.4 msft), Delhi NCR (7.5 msft), and Hyderabad (7.3
msft) being the major contributors. India’s housing market sales of 225,350
units in 9M CY24 were driven by Mumbai (66,800), followed by Pune (43,450) and
Bengaluru (33,400). Continued demand for homes and declining inventory shows
the sector is expected to see continued momentum with significant launches in
the coming quarters. We firmly believe Puravankara is well-positioned to
capitalise on this growth and gain market share.
Tip Sheet
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. As a result, revenue is no longer
recognised rateably over the project execution period but is recognised upon
completion of the project and delivery of flats to the customers. The
aforementioned change in the timing of revenue recognition has significantly
changed the periodical financial results.