Puravankara Projects Ltd's Q1FY19 consolidated net profit rises 33.78% yoy to Rs26.85cr

The company’s consolidated revenue in the period stood at Rs382.10cr, up 12.88% yoy and 32.69% qoq.

Aug 10, 2018 11:08 IST India Infoline Research Team

Puravankara Projects Ltd Q1FY19

Consolidated Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 382.10 12.9
EBITDA 94.80 15.5
EBITDA Margin (%) 24.8 56
Net Profit (adjusted) 26.85 33.8
***EBITDA margin change is bps
Puravankara Ltd’s revenue from operations in Q1FY19 increased by 12.9% yoy to Rs382.1cr as against Rs338.5cr. The company’s EBITDA margin has expanded 57bps yoy to 24.8% as against 24.2% in Q1FY18. The company’s EBITDA spurted 15.5% yoy to Rs94.8cr as against Rs82.1cr. The company’s consolidated PAT after profit/loss of share of associates/joint ventures spurted 33.8% yoy to Rs26.85cr as against Rs20.77cr in the same period a year ago. 
  • Ind AS115 revenue from contracts with customers and amendments to Ind AS 40 investment property consequent to the issuance of lnd AS 115, mandatory for reporting periods beginning on or after April 1, 2018, replaces existing requirements of recognition of revenue and de-recognition of investment property. The application of lnd AS115 and Amendments to Ind AS40 have impacted the group's accounting for revenue from real estate projects and gain/loss arising from de-recognition of investment property.
  • The Group has applied the modified retrospective approach to all contracts as of April 1, 2018, and has given an impact of the application of Ind AS115 and Amendments to Ind AS40 by debit to retained earnings as at the said date by Rs610cr (net of tax).
  • Accordingly, the comparatives have not been restated and hence not comparable with previous period figures. Due to the application of Ind AS115 and amendments to Ind AS 40 for the quarter ended June 30, 2018, revenue from operations is higher by Rs191cr (including gain on sale of investment property of Rs27cr) and net profit after tax (before non-controlling interests) is higher by Rs75cr. The basic and diluted EPS for the period is Rs1.13per share, instead of loss per share of Rs2.18per share.
  • The company has a total saleable area of 92.30mn sq. ft., which includes ongoing projects of 20.82mn sq. ft, and land assets of 71.48mn sq. ft. It has completed projects of 36.78mn sq. ft.
  • The total sales value for Q1FY19 stood at Rs370cr, a growth of 6% over the same period a year ago. Puravankara’s realization per sq. ft grew 18% yoy to Rs7,457 per sq. ft and for Provident rose 13% yoy to Rs5,039 per sq.ft. Provident is a brand of Puravankara catering to the premium affordable housing segment, targeting first time home buyers.
  • The company’s net debt-to-equity ratio stood at 1.27 as of June 30, 2018, vs. 0.83 as of June 30, 2017. During the quarter, the company adopted Ind AS and consequently reduced net worth to the extent of Rs610.76cr, which skewed the net D/E ratio.

Technical View:

Puravankara Ltd ended at Rs101.35, down 3.2 points, or 3.06%, from its previous close of Rs104.55 on the BSE.
The scrip opened at Rs104.95 and touched a high and low of Rs105.10 and Rs100.75, respectively. A total of 1,35,335 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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