Puravankara Projects cracks 13% post Q1 results

MUMBAI: Share of Bangalore-based Puravankara Projects have cracked as much as 13 per cent in last two sessions after the company disappointed the street with its first quarter results.

The company’s net profit for the quarter fell to Rs 58 crore, down 14.7 per cent, as against Rs 68 crore reported a year ago period.

At the end of the June quarter last year Puravankara had a higher profit recognition from its projects under development, which wasn't the case this quarter. Also the company's product mix of premium and affordable housing differed between the two comparable quarters.

Ashish R Puravankara, joint MD, Puravankara Projects, said, "With the new government at the centre, sentiments have been upbeat and the policy initiatives including the push for affordable housing will be a key driver in the growth."

Puravankara sales realization for ongoing projects rose 17 per cent to Rs 5,402 per square feet (psft) in Q1 June 2014 over Q1 June 2013.

Provident sales realization rose 10 per cent to Rs 3,715 psft in Q1 June 2014 over Q1 June 2013.

Puravankara Projects' launch pipeline for the year stands at 18.41 msf under both Puravankara and Provident, the company said in a statement.

At 09:55 a.m.; the stock was at Rs 91.70, down 5.48 per cent, on the BSE. It touched a high of Rs 93.95 and a low of Rs 90.50 in trade today.