Puravankara (PURVA) Q4 13/14 earnings summary

Executive summary

• FY14 combined revenue rose 5.19% to ₹13,133.03 million, while net profit fell 34.28% to ₹1,599.78 million amid higher expenses and a slower property market.

• Strategic focus shifted from maximizing launch realizations to profitability through faster sales, customer-led price discovery, quicker execution and lower reliance on debt.

• Delivered 3.87 million sq. ft.; the quasi-bookbuilding approach generated ₹537 crore in sales across 708 apartments during FY14.

Financial highlights

• Consolidated revenue increased 5.19% to ₹13,133.03 million; project revenue rose 5.37% to ₹12,980.61 million.

• Consolidated net profit declined 34.28% to ₹1,599.78 million; basic and diluted EPS fell to ₹6.86 from ₹11.41.

• Standalone revenue increased 18.18% to ₹9,665.39 million, while PAT decreased 5.57% to ₹1,060.30 million; EPS was ₹4.55 versus ₹5.26.

• Consolidated expenses rose 17.93% to ₹10,706.04 million, faster than revenue; finance expense, net, decreased 1.81% to ₹2,275.94 million.

• Proposed final dividend was ₹1.92 per share, or 38.40%; consolidated cash and bank balances were ₹1,737.31 million at 31 March 2014.

Outlook and guidance

• Net external debt was targeted to decline from ₹1,296 crore at 31 March 2014 to ₹1,000 crore at 31 March 2015, while built-up area grows.

• Planned a greater share of cash-sufficient projects funded predominantly by customer advances, supporting business growth and ROE with lower interest outflows and balance-sheet needs.

• Provident targeted revenue of $1 billion by 2022 and planned higher launches from FY15, broader domestic reach and exploration of Bangladesh and Tanzania.

• Starworth targeted FY15 turnover of ₹350 crore, a year-end order book of ₹1,200 crore and operating presence across 7.5 million sq. ft.