Puravankara Projects Ltd's Q4FY18 consolidated net profit declines 60.31% yoy to Rs24.88cr : Misses Estimates

India Infoline Research Team | May 14, 2018 08:50 IST

The company’s consolidated revenue stood at Rs287.96cr, down 35.57% yoy and 34.57% qoq.

Puravankara Projects Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 287.96 [35.6]
EBITDA 60.22 [53.0]
EBITDA Margin (%) 20.9 [778]
Net Profit (adjusted) 24.88 [60.3]
***EBITDA margin change is bps
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Accumulate

Reco. Price

151.2

Last updated on

09-Apr-2018


For Q4FY18, Puravankara Ltd’s revenue from operations decreased by 35.6% yoy to Rs287.96cr as against Rs446.96cr. The company’s EBITDA margin has contracted by 778bps yoy to 20.9% as against 28.7%. The company’s EBITDA declined by 53% yoy to Rs60.22cr as against Rs128.24cr. The company’s consolidated PAT after profit/loss of share of associates/joint ventures fell by 60% yoy to Rs24.88cr as against Rs62.31cr. 
  • The company has changed its revenue recognition policy from Q3FY18 onwards. Till Q2FY18, revenue from completed real estate projects was recognised upon transfer of all significant risks and rewards of ownership of real estate/property, as per the terms of the contracts entered into with buyers, which generally coincides with the execution of the sale agreement/deed. From Q3FY18, the Group has introduced the practice of executing allotment letters with buyers prior to execution of the sale agreement/deed. The Group, based on the legal opinion, is of the view that such allotment letters have the effect of transferring all significant risks and rewards of ownership to the buyer and are legally enforceable.  Therefore, the revenue from completed real estate projects is now recognised upon execution of the allotment letters entered into with the buyers.
  • On account of the changes in the revenue recognition policy, revenue from operations is higher by Rs56.65cr and the profit before tax is higher by Rs17.69cr for Q4FY18.
  • The company has a total saleable area of 73.75mn, which includes ongoing projects of 16.94mn sq.ft and land assets of 56.81mn sq.ft. It has completed projects of 32.65mn sq.ft.
  • The total sales volume for Q4FY18 grew by 99% yoy to 1.20mn sq.ft, the total sales value grew by 106% yoy to Rs649cr. Puravankara’s realisation per sq.ft grew by 16% yoy to Rs6,719 per sq.ft and for Provident rose by 22% yoy to Rs5021 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 was 0.94 as of March 31, 2018 vs. 0.83 as of March 31, 2017. The cost of borrowings have contracted by 80bps yoy to 10.64% as of March 31, 2018.
  • Conference call for the company is scheduled on May 14, 2018.
Technical View:

Puravankara Ltd ended at Rs. 145.15, up by 2.75 points or 1.93% from its previous closing of Rs. 142.40 on the BSE.
The scrip opened at Rs. 145.95 and touched a high and low of Rs. 148.20 and Rs. 144 respectively. A total of 2,05,816 (NSE+BSE) shares were traded on the counter. The stock traded above its 100 DMA.

BSE 126.55 [0.10] ([0.08]%)
NSE 126.75 0.15 (0.12%)

***Note: This is a NSE Chart

 

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