Realty firm Puravankara Projects today reported 67 percent decline in consolidated net profit at Rs 10.24 crore for the quarter ended June on lower sales.
Its net profit stood at Rs 30.72 crore in the year-ago period.
Income from operations fell 32 per cent to Rs 311.35 crore in the first quarter of this fiscal from Rs 456.52 crore in the corresponding period of the previous year, the Bengaluru-based developer said in a regulatory filing.
Company's finance cost increased to Rs 62.35 crore from Rs 54.61 crore during the period under review.
"We are witnessing a strengthening of our business as compared to earlier periods on project deliveries, collections, accelerated sales from ready-to-move-in and a favourable balance-collections vs balance-cost-to-go owing to many of our current projects having sold over 50 per cent," Company's MD Ashish Puravankara said.
However, he said a move by the local government regarding demolition of buildings in Bengaluru which are built in violation of 1905 map of Bangalore regarding drains is affecting the industry and sentiment of the buyers.
"Since none of our projects are impacted by this move, we believe that once this negative publicity in the local market is removed, our efforts on unlocking value in the business will coincide with a pick-up in the real estate market," Puravankara said.
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