Puravankara Shares Rally 12% as Q3 Sales and Collections Jump
Shares of Puravankara Ltd experienced a notable surge on Wednesday, soaring over 12% to Rs 258.60. This increase came in response to the company’s impressive performance in the December quarter, with significant boosts in both sales value and collections, indicating a recovering demand and robust execution within its residential real estate segment.
Key Highlights of Puravankara’s Q3 Performance
– Sales Growth: Puravankara’s collection surged 22% year-on-year, totaling Rs 1,140 crore in the December quarter. Sequentially, this marks a 9% increase, reflecting strengthened cash flow despite mixed sentiment in the broader real estate market.
– Apartment Sales: The company reported apartment sales reaching Rs 1,414 crore, a remarkable 17% increase compared to last year and a 7% rise since the previous quarter.
– Sales Area: Although the sales area saw a 4% year-on-year growth, it slightly dipped to 1.49 million square feet quarter-over-quarter.
– Average Realisations: Average sales prices increased by 12% year-on-year, reaching Rs 9,500 per square foot.
Deliveries and Developments
During this quarter, Puravankara delivered a total of 1.23 million square feet, comprising 1,116 homes. Year-to-date, the total deliveries have amounted to 2.58 million square feet across 2,446 homes.
Land Acquisitions and Future Projects
– Potential Developable Area: Over the first nine months of the year, the company has acquired more than 12.76 million square feet of potential development area, with an estimated gross development value of Rs 13,900 crore.
– Strategic Acquisitions: Key additions include a 53.5-acre land parcel in Anekal Taluk, Bengaluru, strategic partnerships across Bengaluru, and redevelopment projects in Malabar Hill and Chembur.
– Upcoming Projects: Puravankara’s subsidiary, Starworth Infrastructure and Construction Ltd., received a letter of intent for a Rs 311.18 crore residential project in Bengaluru. This project, Sattva AANGANE, has an expected built-up area of 3.04 million square feet and is slated for completion over a 37-month period.
Stock Performance Overview
While Wednesday’s surge allowed Puravankara to break a five-day losing streak, the stock remains under pressure over the past year, having declined 25.2%. This strong reaction to the Q3 update offers a notable reversal for investors closely tracking the real estate sector.
Conclusion
The impressive growth in sales and collections signifies a positive turnaround for Puravankara, suggesting heightened interest and demand in the residential real estate market. While challenges persist in the longer term, the recent gains indicate a potential shift for the company and its stakeholders. As Puravankara continues to expand its project pipeline and strategic acquisitions, investors will be keen to watch how this performance shapes the company’s future trajectory.