Puravankara Projects surges post Q2 results

The stock up 16% to Rs 49.85 after the company posted a 56% YoY increase in consolidated net profit

Puravankara Projects surged 16% to Rs 49.85 on the BSE in early morning trade after the company reported a 56% year on year (YoY) increase in consolidated net profit at Rs 42.12 crore for the quarter ending September 2016 (Q2FY17), mainly due to lower material & contract cost and land cost. The Bengaluru-based real estate company had profit of Rs 26.97 crore in the same quarter last fiscal.

The company's income from operations fell 11% YoY to Rs 378 crore during the quarter under review, from Rs 424 crore in the year-ago period. Total expenditure declined by 21% at Rs 260 crore on YoY basis.

EBITDA (earnings before interest, tax, depreciation and amortization) margin improved sequentially to 33% in Q2FY17 from 26% in Q1FY17.

"We have reported a strong quarter despite the sluggish real estate market and disruptive macro environment with area sold at 0.47 million sq ft," Puravankara Projects managing director Ashish R Puravankara said.

At 09:32 am; the stock was up 11% at Rs 47.90 on the BSE as compared to 0.27% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than two-fold with a combined 765,712 shares changed hands on the BSE and NSE so far.