Puravankara Projects Q2 net profit jumps 89%

BANGALORE: Real estate firm Puravankara Projects has reported 89% increase in second quarter profit for the fiscal year 2013 at Rs 50.19 crore. Net sales for the July-September quarter rose 38% over the year-ago period to Rs 274 crore.

"The higher margins are due to good sale both in new and completed projects. No land parcel was monetised during the quarter. We have less than a mllion sft of unsold units, which are nearing completion in another two quarters," says Ashishi Puravankara joint managing director, Puravankara Projects, said

The builder, which sold 0.58 million sq ft of new space in the second quarter valued at Rs 234.6 crore, is targeting sales volume of 3 million sq ft for the full year.

"We had already sold 1.23 million sft for the current fiscal year and expect the market to be stable in the next 2-3 quarters," says Puravankara.

Puravankara has 25 million sft of projects at various stages of development under Provident and Puravankara brands. The company will additionally launch 18 million square feet in the current fiscal across South.

The average sale price realisation for Puravankara's residential projects has improved to Rs 3,996 per sq ft from Rs 3,736 per sq ft in the year-ago period. While for Provident, the affordable housing projects by the Group, the average sale realisation was Rs 2,750 per sft in July-September quarter as against 2,360 sft in the same period last year.

The developer has a land bank of 113 million sft with economic interest across the country. The company's debt equity ratio is 0.61 with a net debt of Rs 1337 crore.

Puravankara's shares closed 13% up at Rs 87.30 on the Bombay Stock Exchange on Wednesday.