On track to meet 3m square feet sales in FY13: Puravankara

Puravankara Projects has declared its second quarter results. Its consolidated net profit jumped 89.4 percent to Rs 50.2 crore in the second quarter of current financial year from Rs 26.5 crore in a year ago period.

In an interview to CNBC-TV18, Jackbastian Nazareth, group chief executive officer and joint managing director of Puravankara Projects says the company has clocked 1.23 million square feet in sales. "We are very much on track to do a three million guidance that we promised," he adds. Below is the edited transcript of his interview with CNBC-TV18's Reema Tendulkar and Gautam Broker. Q: Can you take us through the performance this quarter? What has been the sales volume figure? What are you expecting for the second half? A: We have clocked 1.23 million square feet in sales. We are very much on track to do a three million guidance that we promised. Q: What have realisations been this time? A: Our sales realisations, in Puravankara, are Rs 4,051 a square foot. In Provident, it’s Rs 2,700 a square foot. Q: Is there a case for realisations to improve from hereon in H2, for both? A: Yes, ofcourse. The reason is that we have some of the inventory which is ready to move in. There will be increase in both Puravankara and in Provident Housing because Welworth City in Provident is also coming. Phase two is coming to handover stage. We will be unleashing inventory there and also Venezia and Highland. Q: What would be the increase in realisations? A: It could be anywhere in the range of 5-7 percent. Q: There has been positivity with regard to all real estate companies, particularly which operate in your area. Do you see a substantial recovery? How is the market looking like generally? A: I must confess that the market has been good, both the quarters, going into this year, inspite of all the macroeconomic issues, which have been there primarily because we in Bangalore and Chennai cater to the end user. Going forward, this momentum will continue. Q: The three million square feet volumes target, which you indicated, what would that translate in terms of sales guidance, if you could help us for FY13? Coupled with the fact that realisation as well could improve from hereon, what could we expect by way of margins? A: We are currently doing 20 percent as margins. If you look at our performance of half year, given that we said three million, we are at 1.23. I think everything will be in multiples of two.