Puravankara Ltd - Feb 2025 Earnings Call Transcript Analysis

February 17, 2025 · 4 min read

Earnings Call Transcript Analysis Report #

Sales (Q3 FY25): INR 1,265 crores (1.43 million square feet).
- Provident brand sales: INR 737 crores (up 76% YoY).
Customer Collections (Q3 FY25): INR 993 crores (up 6% YoY).
- 9M FY25 Collections: Up 19% YoY, with a current quarterly run rate of approximately INR 1,000 crores.
Average Realization (Q3 FY25): INR 8,847 per square foot (up 16% YoY).
- Puravankara brand: +29% YoY.
- Provident brand: +7% YoY.
Total Revenue (Q3 FY25): INR 334 crores.
EBITDA Margins (Q3 FY25): Approximately 10%.
Net Loss (Q3 FY25): INR 94 crores.
Total Income (9M FY25): Increased by 16% YoY.
Total Comprehensive Loss (9M FY25): Approximately INR 99 crores.
Presales Value (9M FY25): INR 3,724 crores.
Net Debt (as of Dec 31, 2024): INR 2,824 crores.
Net Debt-Equity Ratio: 1.58.
Cash and Bank Balance: INR 736 crores.

Customer collections have grown from ~INR 350 crores per quarter in FY22 to ~INR 1,000 crores per quarter currently.
9M FY25 presales (INR 3,724 cr) are comparable to 9M FY24 (INR 3,966 cr). Management attributes the slight dip to launch delays.
A significant point highlighted was the accounting difference: “While we have reported a loss of INR99 crores for the 9 months for the financial year under Ind AS, under the percentage of completion method, we would have actually reported profits for this particular period.” This was also true for FY23-24 (PBT INR 68 cr under Ind AS vs. INR 160 cr under POC).

Growth: Strong YoY growth in Provident sales, customer collections, and average realizations. Operating cash flows for 9M FY25 up 14% YoY to INR 3,209 crores.
Decline/Loss: Reported net loss for Q3 and 9M FY25 under Ind AS, attributed to upfront expensing of sales/marketing costs for presales and deferred revenue recognition. Debt per square foot increased due to capex and launch deferrals.

Significant focus on expanding presence in the Western region (Mumbai and Pune), with new acquisitions and redevelopment projects in Mumbai having a GDV of ~INR 9,200 crores.
Robust launch pipeline of ~12.63 million square feet, with 73% of planned projects outside Bengaluru, and Mumbai & Pune constituting 50%.
Active business development: ~7 million square feet with GDV over INR 12,000 crores acquired in 9M FY25, land investments of ~INR 1,236 crores.

Launch of Ecopolitan Phase 2 (Bengaluru) and a project in Keshavnagar (Pune) in Q3 FY25.
Upcoming launches include projects in Bellandur, Grand Hills, Mundhwa, Thane, Hebbagodi, Mallasandra, Cityspire, and Bouganvilla.

Aiming to deploy the balance of HDFC fund capital (over INR 700 crores) by June 2025.
Target to increase land bank to 45 million square feet over the next 2-3 years.

Expecting Occupancy Certificates for Capella, Atmosphere, Oakshire, and Adora De Goa in the next two quarters (total salable area 3.95 mn sq ft, GDV INR 3,200 crores, sold value INR 2,550 crores).
Commercial projects: Total of ~2.2 million square feet expected to be completed between June and September 2025 (calendar year).

India’s residential real estate market hit a 12-year high in annual sales in 2024.
“We witnessed a clear shift towards premiumization, the evolving buyer preference driven by aspiration for an enhanced lifestyle…”
Office real estate market sustained record-breaking momentum with annual transaction volumes over 72 million sq ft in 2024.
Anticipation that RBI’s repo rate cut (25 bps to 6.5%) will stimulate demand.

“Increase in sales from Mumbai and Pune is indicative of growing presence in Western region.”
“Puravankara is going to be in a very good position to capitalize on that consolidation.”
Aiming to “definitely beat the industry average” in terms of growth.

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