Puravankara Q3 FY25: Revenue Drops 43% Amid Project Delays, But Strong Sales Momentum Continues
Puravankara Limited, a leading real estate developer, has reported its financial results for the third quarter of FY2025, showing mixed performance with challenges in revenue recognition but maintaining strong operational metrics and sales momentum.
Key Financial Highlights
The company reported a net loss of ₹92.64 crore in Q3 FY2025, compared to a profit of ₹77.88 crore in the corresponding period last year. Revenue saw a significant decline of 43% to ₹334 crore, primarily impacted by project completion delays and accounting standards requirements.
Operational Performance Shows Resilience
Despite the financial challenges, several operational metrics showed positive momentum:
- Customer collections increased by 6% year-on-year to reach ₹993 crore in Q3 FY25
- Average price realization improved by 16% overall, with Purva brand showing a remarkable 29% increase
- Sales volume for Q3 FY25 reached 1.43 million square feet with a sales value of ₹1,265 crore
- Nine-month sales performance totaled 4.24 million square feet with a value of ₹3,724 crore
Strategic Expansion and Market Position
Puravankara has maintained its aggressive growth strategy with significant developments:
- Acquired multiple premium projects in Mumbai including locations in Lokhandwala, Pali Hill, Breach Candy, and Thane
- Added projects with potential gross development value exceeding ₹9,000 crore
- Generated operating cash surplus of ₹752 crore in 9MFY25
- Invested ₹1,236 crore in land acquisition, adding over 7 million square feet of saleable area
Project Pipeline and Future Outlook
The company's Managing Director, Ashish Puravankara, highlighted upcoming milestones:
- Four projects with 3.95 million square feet of saleable area expected to receive completion certificates in Q4FY25/Q1FY26
- Total project value of over ₹3,200 crore nearing completion
- Strong land bank of approximately 29 million square feet
- Ongoing projects totaling 34 million square feet
Financial Position and Debt Management
As of December 31, 2024, the company's financial position shows:
- Net debt standing at ₹2,824 crore
- Net debt-to-equity ratio of 1.58
- Weighted average cost of debt at 11.73%
Market Context and Industry Outlook
The Indian real estate sector continues to show strong fundamentals, with 71 million square feet of office leasing recorded in CY2024. Government initiatives, including income tax rationalization and potential repo rate adjustments, are expected to boost housing demand, particularly in affordable and mid-segment categories.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
0 comments:
Post a Comment