Puravankara (PURVA) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue rose 28.7% to ₹1,690.62 crore, while net profit fell 17.0% to ₹132.73 crore amid a subdued property market and higher project expenses.

• Strategy shifted toward faster project completion, asset-light co-development, standardized processes and deeper concentration in five cities.

• Construction execution reached a record 3.31 mn sq. ft; 24.01 mn sq. ft was under execution at year-end.

Financial highlights

• Consolidated revenue from operations increased 28.1% to ₹1,677.72 crore; total income rose 28.7% to ₹1,690.62 crore.

• Consolidated net profit declined 17.0% to ₹132.73 crore; basic and diluted EPS fell to ₹5.60 from ₹6.86.

• Standalone revenue increased 26.1% to ₹1,218.41 crore, while PAT declined 19.5% to ₹85.33 crore; standalone EPS was ₹3.60 vs ₹4.55.

• Consolidated expenses rose 43.0% to ₹1,530.80 crore, led by project expenses up 79.7%; net finance expense decreased 1.6% to ₹223.96 crore.

• Adjusted for the ₹27.02 crore prior-year tax claim credit and ₹10.09 crore gain on sale of an associate, reported profit included material one-time items.

Outlook and guidance

• FY16 project launches planned at 11.63 mn sq. ft across five cities; nearly 24.01 mn sq. ft under execution targeted for delivery within ~36 months.

• Vision 2020 targets annual sales of 13.3 mn sq. ft, 55 mn sq. ft under execution, 2x development capacity and 80 mn sq. ft of launches over five years.

• Expected to reduce net gearing from ₹1,556 crore toward ~₹1,000 crore by liquidating 2.25 mn sq. ft of ready-to-move inventory valued at ~₹1,100 crore over 24 months.

• Provident targets aggregate project rollout of 40 mn sq. ft by 2020; launches and execution will prioritize completion and recovery readiness.