Puravankara (PURVA) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue rose 2.54% to ₹1,504.94 crore, while profit after tax fell to ₹91.40 crore from ₹128.90 crore; sales area bookings grew 50% to 3.25 msft.

• Momentum strengthened in Q4: sales doubled YoY to 1.2 msft, the highest quarterly level in 12 quarters.

• Growth priorities included expanding Provident, geographic diversification, joint development, faster project delivery, cost control and debt reduction.

Financial highlights

• Consolidated revenue from operations was ₹1,414.90 crore vs ₹1,407.12 crore; total income reached ₹1,504.94 crore vs ₹1,467.63 crore.

• Consolidated PAT declined to ₹91.40 crore from ₹128.90 crore; total comprehensive income was ₹91.16 crore vs ₹128.93 crore.

• EBITDA was ₹397.53 crore, down 16.69% from ₹469.66 crore; finance costs fell 13% to ₹251.34 crore from ₹289.50 crore.

• Sales bookings reached 3.25 msft, up 50% YoY, with sales value of ₹1,752 crore vs ₹1,168 crore; ready-to-move sales rose 78% to 1.41 msft.

Outlook and guidance

• FY19 priorities: accelerate revenue growth, especially at Provident; control costs, complete projects on time, lower credit costs and augment profitability.

• Over five years, the planned portfolio was 5–7 msft, including 2–3 msft of office space intended to create annuity income.

• Liquidity needs through FY19 were expected to be met mainly from operating cash flows, with project-specific construction finance available if required.

• Ind AS 115 adoption from April 1, 2018 was expected to shift revenue recognition to completed-contract accounting, weighing on near-term revenue, profit and net worth before long-term effects normalize.