Puravankara Limited, (5th best Indian real estate brand as per Track2Realty BrandXReport 2022-23), has recorded a strong sales performance in 9MFY24 with a sales value of INR 3,967 crores, an increase of 89 per cent compared to INR 2,100 crores in 9MFY23.
The Indian economy grew at 7.8 per cent in the first quarter of the current fiscal year, according to the data shared by National Statistical Office. The Reserve Bank of India (RBI) retained its GDP growth forecast of 6.5 per cent for FY 2023-24. The real estate sector is expected to expand to $5.8 trillion by 2047, contributing 15.5 per cent to the GDP from an existing share of 7.3 per cent, a joint report by Knight Frank and National Real Estate Development Council (NAREDCO) indicates.
Puravankara Limited (BSE: 532891) has achieved the highest ever annual and quarterly sales of any financial year since inception by clocking INR 1,007 crore in sale value in Q4 and a total of INR 3,107 crore for FY23, the company announced today, April 12, in its operational update.
On Puravankara’s future plans he said, “We will continue to work towards expanding our market share,and we are excited to announce that in Q3FY23 the group has achieved increased revenue from projects by 77%, increased collection from operations by 87% from construction and delivery against the similar quarter in the previous year. This is supported by increased sales and new launches of over 4.11 msft in 9MFY23 with the last quarter of the current financial year adding another 2.17 msft. Our per Sq. Ft. of debt on under construction area has reduced by 49% from INR 2,524 to INR 1,291 over the last four years.
In an exclusive interview, Abhishek Kapoor, CEO of Puravankara said,”What is the value of a real estate? If you look at this quarter number compared to the last quarter number then my delivery is lesser. But next quarter again you will see a swing because next quarter and next to next quarter we have delivery in the pipeline. This year so far we have delivered 600 units but in the next two quarters we will deliver more than double; about 1500 units. So, that will factor in our revenue realisation. What is relevant for our business is our sales number & pre-sales number that has gone up to Rs 1300 crore for the first half of the year. It is all about the new accounting norms (IND AS 115),” says Kapoor.
Puravankara has recorded highest ever first quarter sales of INR 513 crores from ongoing projects, area sold stood at 0.69 msft. Profit After Tax for Q1FY23 at INR 35 Crore up 258% qoq. Operating inflows stood at INR 667 Cr up 16% qoq.
Puravankara has closed its targeted AIF (Alternative Investment Fund) of INR 750 crore (including a green shoe option of INR 250 crore). The company targets the final close of the Fund by September 2022. The Fund will invest in a mix of plotted developments and mid-sized mass housing projects under the ‘Purva Land’ and ‘Provident Housing’ brands.
Puravankara stock has been pretty under-valued, claims Abhishek Kapoor, CEO of the company. According to him, it is the perception battle that Puravankara has to weather as the intrinsic value of the stock and the performance of the company is at par with the top real estate companies of the country. In an exclusive interview with Ravi Sinha, Puravankara CEO explains why and how the brand would change the perception in the next few years. Excerpt of the interview:
Those who know Puravankara family are not surprised. After all, he grew up in a home where every dinner discussion was about business and opportunities, which would invariably veer towards brick, mortar and realty. He was mentored by a passionate and focused visionary father whose passion and perseverance made Ashish understand what it takes to build vibrant communities and enriching lives by offering families their dream of buying a home.
The project is expected to deliver a Sales Volume of close to INR 1000 crores over the next 5 years or so. As part of its marketing strategy, the company has a dual strategy of attracting the local home buyers in Goa, as well as position it as a Vacation Home to those who live in other parts of India yet love Goa for what it is.