Puravankara reported a consolidated net loss of INR 17.06 crore for the latest quarter, exceeding the loss from the same period last year. However, the company recorded substantial revenue growth of 36.2%, reaching INR 519.68 crore, and achieved a 67% rise in project revenues for the first half of FY25. Key growth indicators included a 14% increase in sustenance sales, higher pricing for Purva and Provident brands, and significant land investments. The company remains focused on launching new projects with a GDV potential of INR 13,625 crore in the coming quarters.
Puravankara recently announced a consolidated net loss after tax of INR 17.06 crore for the quarter that just ended. This reflects a higher loss compared to the same period last year, when the company reported a net loss after tax of INR 11.22 crore. The announcement was made through a filing with the Bombay Stock Exchange (BSE), where the company highlighted various financial performance metrics.
Despite the loss, Puravankara saw a significant rise in its total consolidated income for Q2 FY25, which reached INR 519.68 crore. This marks a 36.20% growth from the INR 381.57 crore recorded in the corresponding quarter of the previous financial year. The increased income hints at stronger revenue generation, possibly driven by improved sales and higher operational activity across its portfolio.
Ashish Puravankara, the company's managing director, commented that sustenance sales rose by 14% year-on-year for the first half of FY25, demonstrating ongoing buyer interest. He also noted that average prices for properties in their Purva and Provident brands increased in Q2, by 17% and 15% respectively, compared to the same period the previous year. This uptick in price realisation, he suggested, highlights the strength of Puravankara's brand positioning in the market. Looking ahead, he shared that the company is focusing on new project launches, targeting approximately 12.27 million square feet of development with an anticipated gross development value (GDV) of around INR 13,625 crore. These projects, he indicated, would contribute to the company's upcoming project pipeline and deliveries over the next two quarters, aiming to leverage market demand.
During the first half of FY25, Puravankara's revenue from projects rose by a substantial 67%, reaching INR 1,195 crore compared to INR 717 crore in H1 FY24. Customer collections, a key indicator of cash inflow and operational efficiency, also grew by 27%, totalling INR 1,999 crore. This uptick in collections points to an improvement in Puravankara's ability to secure payments from buyers, which supports its overall cash flow and operational stability. Sales volume for H1 FY25 stood at 2.84 million square feet, with the total sales value amounting to INR 2,459 crore, further underscoring the company's strong sales momentum.
Investment in land acquisition has also been a strategic priority for Puravankara. The company invested around INR 945 crore in land, which is expected to yield a gross development value (GDV) of INR 9,700 crore from 5.8 million square feet of new acquisitions. This additional land will support future developments, allowing the company to expand its project portfolio and potentially capture a larger market share as demand for real estate continues to evolve.
On the financial front, the company's net debt stood at INR 2,430 crore for Q2 FY25, translating to a net debt-to-equity ratio of 1.29. The weighted average cost of debt was reported at 11.62% as of the quarter-end, reflecting the interest burden on the company's borrowings. Managing debt levels and borrowing costs will be critical for Puravankara's financial health, especially as it pursues its ambitious growth and expansion strategies.
Despite posting a higher net loss, Puravankara's strong revenue growth, increased sales volume, and strategic land investments suggest a positive outlook. The company has maintained strong cash flow and collection efficiency, with customer collections rising by 27% year-on-year. Planned project launches and ongoing improvements in pricing highlight Puravankara's long-term commitment to market expansion. Managing its debt levels effectively will be essential to sustaining growth and achieving the projected gross development value, positioning the company favourably for future opportunities.
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