Puravankara up and down

Two news from Puravankara – firstly, its performance and secondly, its entry into redevelopment project.

On its performance, the company recorded sales of Rs.1600 crore, a rise of 102% (YoY) and this was on a 89% increase in sales volume arv2.01 msft, with strong collection of Rs.879 crore, up 70%.Average price realisation rose 7% to Rs.7947/sqft.

Translating all this into earnings for Q2FY24, its consolidated revenue from projects stood at Rs.368 crore, up 54%. EBITDA was at Rs.98 crore, up 69%. Yet, the company ended the quarter with a net loss of Rs.11 crore, mainly on account of higher cost of sales and marketing for ongoing and new launches.

The company during the quarter handed over 927 units with an area of 1.01 million sq ft and has plans to deliver approximately 2,500 units (approximately 2.5 million sq ft) during the second half of FY24. Its net debt stood at Rs 1,992 crore.

The second news on its redevelopment, which is reported by Moneycontrol but not confirmed by the company -  marking its first redevelopment project in Mumbai, the company has got residential redevelopment rights for two housing societies in the western suburbs with a potential gross development value (GDV) of Rs 1,500 crore over the project’s life cycle. Construction for the luxury project is expected to begin only in FY25.

The market took this window to book gains; the stock, from its close of Rs.1690.45, opened higher at Rs.161.05 and even rose to hit a new 52-week high at Rs.162.15 but selling at this level pushed down the price to Rs.156.50 and is now trading in the red.