Puravankara (PURVA) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated revenue rose 25.26% to ₹5,992.09 million, while net profit fell 18.86% to ₹1,179.06 million, primarily on higher project input costs, higher tax on non-80IB units and lower associate contribution.

• Excluding ₹587 million of surplus-land sale profit recorded in FY10, FY11 profit increased 38% versus the corresponding prior-year 12-month period.

• Operations spanned premium and affordable housing, with 25.20 million sq. ft. under development and a land bank of 143.43 million sq. ft. of developable area.

Financial highlights

• Consolidated revenue was ₹5,992.09 million versus ₹4,783.62 million in FY10; apartment sales drove the increase, with income recognized from seven completed and 11 ongoing projects.

• Gross profit declined to ₹1,964.07 million from ₹2,035.49 million; operating profit was ₹1,415.90 million versus ₹1,582.53 million.

• Consolidated PAT was ₹1,179.06 million versus ₹1,453.18 million; PBT was ₹1,458.74 million versus ₹1,751.26 million.

• Parent-only PAT was ₹838.64 million versus ₹1,365.58 million; EPS was ₹3.93 versus ₹6.40.

Outlook and guidance

• Planned launches across Coimbatore, Colombo, Kochi, Bengaluru and Mysore; expansion plans and spending depend on market conditions and financing availability.

• Affordable housing pipeline included ~6 million sq. ft. at various development stages and another 10 million sq. ft. approaching launch in FY12; FY11 sales guidance of ~3 million sq. ft. was met.

• Strategy prioritizes project execution, construction technology and marketing capability, with a stated ambition to expand into newer markets and build a pan-India presence by decade-end.