Bengaluru-based real estate developer Puravankara recorded Rs 1,304 crore in sales in the first half of 2022, 43 percent higher than the same period in the last fiscal. The company also recorded a net consolidated loss of Rs 17 crore as the quarter ended on September 30, according to a regulatory filing.
"This quarter we will have five projects in the delivery pipeline with around 1,500 units. Between delivery and cost of new launches, the amount that hit the bottom line explains the loss amount --- as per accounting standards. However, as we deliver the new projects, we will recover our position. We have also acquired four occupation certificates to date," Abhishek Kapoor, Executive Director (ED) and Chief Executive Officer (CEO) said.
Kapoor said the company's sales grew from last year for the September quarter by 33 percent and collections have gone up 50 percent half-yearly.
The collections during H1FY23 stood at Rs 925 crore, higher than Rs 620 crore during the same period in the last financial year, the regulatory filing mentioned. The company sold 1,329 units with an area of 1.75 million sq feet (msf) for the half-year period compared to 926 units, an area of 1.33 msf during H1 of the last financial year, the filing added.
"For the quarter, our collections from residential sales grew by 52 percent or Rs 518 crore, compared to the same period last year of Rs 341 crore. Sales have also increased by 33 percent at Rs 791 crore compared to the same quarter one year ago Rs 597 crore," Kapoor said.
He added, despite a 190-basis point (bps) repo rate hike since May this year and increased bank loan interests, the real estate sector is not recording any recession. "For our luxury brand, Puravankara and affordable housing wing Provident Housing -- both have recorded an equal amount of sales. The loans go up to 15-20 years, and I believe the homebuyers already know that such changes in interests will keep on happening in between. Especially looking at GST collection, it shows vibrancy in the Indian economy that is slowly picking up," Kapoor said.
The company said, for affordable housing, homebuyers today want larger 2 BHK houses compared to the demand for 1 BHKs last year. "Despite rupee depreciation and other inflationary environments, the investment cycle going on today and the kind of capital being put out will compensate for any such levels in inflation," Kapoor added.
The company plans to launch 15 msf by the end of this financial year with new projects in Bangalore, Chennai, Kochi, Coimbatore, Mumbai and Pune. Among the launches over 5 msf of development will be done in Purvankara and its affordable housing wing Provident Housing. Around 4 msf of development will be done by Purva Land -- the company's plotted development wing.
