Puravankara Limited, a realty company headquartered in Bengaluru, announced its quarterly results on 31st July. The company reported quarterly sales of ₹1,128 crore, a slight increase from ₹1,126 crore in Q1 FY24, although some planned launches were postponed to Q2 FY25. Notably, Puravankara also cleaned its balance sheet of all losses, reporting a profit of ₹15 crore compared to a loss of ₹17 crore in Q1 FY24.
“The revenue went up to ₹676 crore on account of higher delivery of 929 units, a 108 per cent growth over last year’s delivery. While the company sold 1.29 million square feet (msft), we focused on replenishing our landbank. The company deployed ₹762 crore for land acquisition in MMR, Goa, and Bengaluru,” said Ashish Puravankara, Managing Director, Puravankara Limited, in a release.
Wiped all losses
Abhishek Kapoor, Group CEO of Puravankara, explained in an interaction with the businessline that there is a discrepancy between how the accounts reflect performance and the actual results due to accounting policies.
“The primary focus of the group is on boosting pre-sales, generating strong cash flows, and pursuing acquisitions as they will drive monetization of previous investments, allowing reinvestment in land for future growth and expanding product launches. While current costs are affecting our EBITDA and PAT figures, we believe our growth will improve our financials in the future as we continue to deliver”, he said.
EBITDA reached ₹148 crore, marking a substantial annual increase of 96 per cent. The net debt for Q1 FY25 was ₹2,237 crore.
In response to a question about the company’s debt levels, Abhishek stated they are comfortable with the debt position. The company made strategic investments of over ₹760 crore in new acquisitions, allowing it to add more than 4 msft of property to its portfolio and cash balance of over ₹1,000 crore.
Despite these investments, the company claims that the debt has increased by ₹86 crore.
The company reported customer collections from the real estate business of ₹965 crore in Q1 FY25, up 39 per cent from ₹696 crore in Q1 FY24. Average price realization grew by 6 per cent YoY, reaching ₹8,746 per square foot. Additionally, project revenue rose significantly to ₹676 crore, a 101 per cent increase compared to the previous year.