Puravankara (PURVA) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue rose 35.93% to ₹815.46 cr; consolidated net profit increased 15.12% to ₹135.73 cr, despite a weak real estate market.

• Average realizations increased 31% to ₹3,586 per sq. ft.; EBITDA margin was 48.13%, and return on capital employed was 14.28%.

• Sales volume was 2.44 mn sq. ft. versus 3 mn sq. ft. guided; delayed clearances and project launches were cited as constraints.

Financial highlights

• Consolidated net profit was ₹135.73 cr versus ₹117.91 cr in FY11; consolidated EPS rose to ₹6.36 from ₹5.52.

• Standalone net profit was ₹47.40 cr versus ₹83.86 cr in FY11; standalone EPS was ₹2.22 versus ₹3.93.

• Consolidated total expenses rose 37.63% to ₹623.30 cr; net finance expenses were ₹192.76 cr versus ₹131.68 cr.

• Raw material and contract costs were 58.20% of revenue, down from 61.44%; average realizations rose from ₹2,734 to ₹3,586 per sq. ft.

Outlook and guidance

• Targeted annual revenue of ₹1,000 cr going forward; Provident Housing’s revenue share was expected to rise from 31% to 50% by FY14.

• Expected to complete 90% of ongoing projects, spanning 6.78 mn sq. ft., by Dec 2012; resulting inventory was valued at ₹4,000 cr at then-current market realizations.

• Land bank was expected to support estimated revenue of ₹4,000–5,000 cr over five years; plans included residential, commercial and retail developments.

• Planned launches across Coimbatore, Colombo, Kochi, Bengaluru and Mysore; Venkatapura, Bengaluru, was planned as a 5,900-apartment affordable housing project, with construction expected to start in FY13.