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Puravankara Ltd recorded a consolidated net loss of INR 68.55 crore in the April-June quarter, reversing from a net profit of INR 14.78 crore in the same period last year. The Bengaluru-based realty firm's total income dropped to INR 538.64 crore from INR 675.55 crore year-on-year, reflecting a decline in revenue. Although total expenses decreased slightly from INR 654.41 crore to INR 628.76 crore, it was not enough to offset the fall in income. On a positive note, sales bookings rose by 6% to INR 1,124 crore, while sales volume slipped marginally but the average realisation improved by 9% to INR 8,988 per sq ft, indicating better pricing despite volume pressure.
Puravankara Ltd, a leading real estate developer headquartered in Bengaluru, posted a consolidated net loss of INR 68.55 crore for the quarter ending June, marking a sharp downturn compared to a net profit of INR 14.78 crore during the same period last year. This loss primarily stems from a significant reduction in total income, which declined by nearly 20% to INR 538.64 crore from INR 675.55 crore in the year-ago quarter, according to the company's recent regulatory filing. Advertisement
The company's total expenses also decreased but at a smaller rate, falling to INR 628.76 crore from INR 654.41 crore. The marginal decline in expenses was not sufficient to offset the drop in revenue, resulting in an overall negative bottom line. Despite these financial setbacks, Puravankara's operational performance showed signs of resilience. The firm reported a 6% increase in sales bookings, which grew to INR 1,124 crore from INR 1,064 crore during the same quarter last fiscal. This indicates ongoing demand for the company's projects, even as the broader market conditions remain challenging.
Sales volume saw a minor decline to 1.25 million square feet from 1.29 million square feet, reflecting a slight slowdown in the quantity of space sold. However, the average realisation per square foot experienced a healthy increase of 9%, rising to INR 8,988. This growth in average price per square foot suggests that Puravankara was able to command better pricing for its properties despite lower sales volumes, which may help improve margins going forward.
Puravankara's ability to grow sales bookings despite overall revenue pressure points to effective marketing and demand for its residential and commercial offerings. However, the net loss indicates that the company still faces significant challenges in managing costs and generating sufficient income to maintain profitability. This performance comes amid a broader real estate market that has been impacted by fluctuating demand, tightening credit conditions, and inflationary pressures affecting construction costs.
As one of the country's established real estate players, Puravankara has historically balanced growth with cautious financial management. The current quarter's results highlight the delicate balance required between maintaining sales momentum and managing operational efficiencies in a dynamic and competitive sector.
Source PTI
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