Puravankara Q1 Revenue at Rs. 323 Crores, up 50 Percent Y-o-Y; Pre-Sales of Rs. 1,126 Crores Delivers 119 Percent Growth
BusinessWire India
Bengaluru (Karnataka) [India], August 11: Puravankara Limited (BSE: 532891), one of India’s most trusted real estate players, announced its financial results today for the first quarter (Q1FY24) ending June 30, 2023.
The company recorded sales of Rs. 1,126 crores, an increase of 119% Y-o-Y. Sales volume for the quarter stood at 1.36 msft, up by 97% Y-o-Y with a strong collection of Rs. 696 crores (+52% Y-o-Y). Average price realisation increased by 11% to Rs. 8,227/sq ft during the quarter, up from Rs. 7,436/sq ft in Q1FY23. Operating cash inflows stood at Rs. 866 Crores (+30% Y-o-Y) and revenue from projects stood at Rs. 323 crores (+50% Y-o-Y).
Commenting on the company’s performance, Ashish Puravankara, Managing Director, Puravankara Limited, said, “The results for Q1FY24 show a strong start to the new fiscal year. Pre-sales has more than doubled (119% growth Y-o-Y) vs Q1FY23. With a robust pipeline of 15 million square feet of new launches this year, we are confident of continuing to drive our pre-sales growth momentum. We are actively pursuing potential acquisitions across regions in all our product categories, in line with our growth plans for the upcoming financial years.”
Highlights
Operational Highlights for Q1FY24
* Area sold stood at 1.36 msft (+97% Y-o-Y)
* Sales value stood at Rs. 1,126 crores (+119% Y-o-Y)
* Sales realisation stood at Rs. 8,277/sft (+11%Y-o-Y)
Consolidated Q1FY24 Financial Performance
* Revenue from projects stood at Rs. 323 crores (+50% Y-o-Y)
* EBITDA stood at Rs. 75 crores (-46% Y-o-Y)
* Loss of Rs. 17 crores as compared to a profit of Rs. 35 crores in Q1FY23
Projected Cash Flows
As on 30th June 2023,
* Balance collections from sold units (completed + ongoing) in all launched projects stood at Rs. 3,052 crores
* Total value of unsold inventory, including new launches in Q1FY24, stood at Rs. 5,528 crores
* Total estimated surplus from all completed and ongoing projects is Rs. 6,730 crores
Debt
The net debt stood at Rs. 2,119 crores and the net debt to equity ratio stood at 1.07 for Q1FY24. Net debt has reduced by Rs. 89 crores compared to the previous quarter.
Outlook
Sales of 64,500+ residential units in the last quarter (Q1FY24) is a new peak, the highest ever since 2008. This trend points towards a sustained positive trajectory in the real estate cycle evidenced by inventory of less than 12 months nationwide. With the increasing economic activity and a growth projection of 6.1% by IMF (revised up by 0.2%), we firmly believe that Puravankara is well-positioned to capitalise and gain market share in a consolidating real estate market.
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 aforesaid change in the timing of revenue recognition has brought a significant variation in the periodical financial results.
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