Puravankara's Q1 profit zooms 258% at Rs 37 cr

Leading real estate group Puravankara Projects today announced that its consolidated net profit went up 258 per cent at Rs 36.7 crore in the quarter ended June, compared to Rs 10.2 crore in the corresponding period last fiscal.

The company's revenue for the quarter increased by 108 per cent over last year at Rs 116.3 crore.

It said the net profit for the margin for the quarter at over 31 per cent continues to exhibit healthy trend and the performance is above industry levels.

The gross profit margin is above the 42 percent level whilst selling, general and administrative expenses have once again been closely monitored and controlled.

Company's Chief Operating Officer (COO) Jackbastian Kaitan Nazareth attributed the good results to the recovery in economy and positive consumer sentiments. "Enquiries and sales have been positive," he said.

The land bank has been augmented from 125.39 million square feet to 143.25 million square feet of developable area in the quarter through some land acquisition in Bangalore.

"We will see some more land acquisitions in the coming quarters in Chennai, Coimbatore and Hyderabad," the firms Director Ashish Puravankara said.

The Group's relatively strong financial position and liquidity is underlined by its comfortable debt to equity ratio of 0.57 and a manageable net debt of Rs 861 crore as on June 30, 2010. "We are comfortable with the debt to equity ratio because of sales," said Nazareth.

He said currently, it is not looking at raising fund through QIP but would go for construction finance.