Puravankara delivers a stellar Q1 business update; shares surged 11% today

Puravankara Ltd in the exchange filing today, shared a business update regarding the quarter that ended June 2023.

Today, the shares of the company zoomed approximately by 11% and are currently trading at around Rs 105 while writing the article. The current market capitalisation of the company is Rs 2483 Crore. Its 52-week high and low are Rs 116.35 and Rs 59.35, respectively.

The company is in the business of the development and sale of real estate. It has a major presence in metro cities like Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune, and Goa.

As per the update, the company has achieved its highest-ever sales of Rs 1,126 Crore in any quarter, marking a significant milestone and the first quarter of any financial year since inception. This sales figure represents a remarkable increase of 119% compared to the previous quarter’s sales of Rs 513 Crore.

Additionally, customer collections from the real estate business rose to Rs 696 Crore in Q1 FY24, demonstrating a 52% year-on-year growth compared to the customer collection of Rs 458 Crore in Q1 FY23.

Moreover, there has been a remarkable 11% increase in the average price realisation, reaching Rs 8277 per square foot during Q1 FY24, compared to Rs 7436 per square foot in Q1 FY23. This highlights the positive trend of higher average prices achieved by the company.

In this quarter, the company launched a new project called “Purva Raagam” in Chennai, covering an area of 0.77 million square feet. Moreover, sale value increased by 12% and collection increased by 5% when compared to the immediate previous quarter Q4 FY23 said management.

Ashish Puravankara, Managing Director of Puravankara Ltd, said, “Our unwavering dedication to growth and our ongoing efforts to capture a larger market share has resulted in the highest-ever Q1 sales in the history of the company. This is a remarkable achievement. This quarter pre-sales have more than doubled (119% growth on a Y-o-Y basis) vs Q1FY23.

With a strong pipeline of new launches, we are confident that we will continue to drive our pre-sales growth momentum. Our new launches are complemented by impressive sustenance sales achievements, supported by efficient and fast-paced execution leading to increased collections by 52% on a Y-o-Y basis.

Additionally, I am delighted to share that continuous improvement in business performance and cash flows will give the company a fillip to steer incremental growth through new acquisitions in line with our future goals.”

The stock has generated a return of over 44.75% in the last three months, whereas it has delivered a magnificent return of around 114% in the last three years.

In terms of ownership, promoter holds 75% whereas FIIs and DIIs hold 16.36% and 0.70%, respectively. The remaining portion held by the retail investors is 7.94% as per the latest update.