Puravankara plans to deliver 2,000 units, develop over 2 million sq ft by Q4FY24

Puravankara executive director and chief executive officer Abhishek Kapoor.

Bengaluru-based real estate developer Puravankara plans end the financial year by delivering 2,000 units with a development potential upwards of 2 million sq ft (msf) across Bengaluru, Pune, Chennai and Mumbai, Abhishek Kapoor, executive director and chief executive officer, told Moneycontrol.

Of the total development, about 500 will be plots under Purva Land, its plotted development segment, and the rest will be apartments.

"In the first nine months of FY24, we have already handed over about 1,405 units. Over the same period we saw sales of Rs 2115 crore in Purvankara, Rs 1374 crore in Provident Housing (the mid-segment housing arm of the group), and Rs 478 crore in Purva Land. Next quarter, we believe Provident and Purva Land will lead the sales due to a large number of launches scheduled," he said.

For the upcoming developments, the company is looking at locations like Whitefield, Sarjapur and Bellandur in Bengaluru; Kelambakkam outside Chennai; Khondwa in Pune; and Chembur and Dombivli in Mumbai.

For plotted development, the ticket sizes will be between Rs 18 lakh and Rs 90 lakh in Chennai and range from Rs 80 lakh to Rs 1 crore in Bengaluru. The apartments will be available from Rs 65 lakh to Rs 1.2 crore across cities.

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"We did presales of Rs 3,967 crore in the first nine months of FY24, and have already collected around Rs 2,515 crore. The cash balance is over Rs 800 crore, and the operating surplus has grown more than 100 percent from the same nine-month period last year. We hope to maintain the same momentum in FY25," Kapoor added.

Major plotted development

The company said it was looking at 1.8 msf of plotted developments across Bengaluru and Chennai in the last three months of the fiscal.

On January 18, the company announced the 50-acre phase 1 launch of its largest themed plotted development in Chennai, Purva Soukhyam, spread across 120 acres with about 2,200 plots ranging from 600-5,000 sq ft. More than 80 percent of the plots are in the range of 800-1,800 sq ft.

"The GDV (gross development value) of the project is Rs 900 crore. We are looking to launch the second phase of the plotted development project within the next financial year," Kapoor said.

Moderate debt over next few quarters

The group posted a profit of Rs 78 crore in Q3FY24, up 266 percent year-on-year, on a revenue of Rs 596 crore. Earnings before interest, taxes, depreciation and amortisation stood at Rs 218 crore, 71 percent higher than in the same quarter of the previous year.

The developer's net debt touched Rs 1,741 crore, down by Rs 251 crore from the previous quarter. Its net debt-to-equity ratio stood at 0.85 for Q3FY24.
"We will be investing more money in the upcoming quarters while we continue to push inventories. However, we expect debt level as an absolute number to remain between Rs 2,000 crore and Rs 2,400 crore," Kapoor added.

Redevelopment in Mumbai

The company said it is participating in 12-plus redevelopment projects (where older, dilapidated buildings are torn down and rebuilt in partnership with existing homeowners) in Mumbai and that talks for another four projects are at a very advanced stage.

"We recently closed one redevelopment project in Mumbai with a development potential of 0.6 msf with a GDV of Rs 1,500 crore," Kapoor said.

The first redevelopment project is located in the heart of Lokhandwala in Andheri West and is spread over 3 acres. It has a cumulative estimated development potential of 5.8 lakh square feet of carpet area.

The company is looking at the western suburbs, South Mumbai and to some extent the central suburbs in the country’s commercial capital.

“We are expecting over the next 9-18 months’ time frame to deploy approximately Rs 1,000 crore in the western region. This is in addition to what we have already deployed and the ongoing projects,” Kapoor said during an investors' call on January 23.

Projects to get occupancy certificate in Q4

In the last quarter of the financial year, the company is expecting occupancy certificates for four projects: Zenium in Bengaluru, Somerset in Chennai, and Promenade and Tivoli (plotted developments) in Bengaluru.

Among the launches lined up for the fourth quarter, Kapoor said, the company is looking at Provident Botanico and Purva Land S Medahalli in Bengaluru, Provident Bayscape (Southbay) in Chennai, Provident Kenvista in Khondwa Pune, and new towers in the existing projects Purva Clermont and Provident Palmvista in Mumbai.