Has Realty Firm Puravankara's Net Loss Expanded to Rs 88 Crore in Q4?
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Synopsis
Puravankara Limited has faced significant financial challenges in Q4 FY25, with a net loss increasing to Rs 88 crore. Despite this, the company showed strong sales activity and expansion in Mumbai. What does this mean for the future of Puravankara?
Key Takeaways
- Puravankara's net loss widened to Rs 88 crore in Q4 FY25.
- Revenue from operations dropped by 41 percent YoY to Rs 541.6 crore.
- EBITDA declined by 73 percent, impacting margins.
- Strong pre-sales activity reached Rs 1,282 crore during the quarter.
- Expansion in Mumbai with four new premium projects.
Mumbai, May 31 (NationPress) The real estate firm Puravankara Limited has recorded a net loss of Rs 88 crore in Q4 FY25, a significant increase from a net loss of Rs 6.7 crore during the same quarter of the prior fiscal year.
Furthermore, revenue from operations has notably decreased, plummeting by 41 percent year-on-year (YoY) to Rs 541.6 crore, down from Rs 920 crore, as disclosed in its stock exchange submission.
The firm’s operational performance has also suffered, with EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropping by 73 percent to Rs 30.5 crore, compared to Rs 113.4 crore in the corresponding quarter of the last financial year.
This decline has led to a contraction in the EBITDA margin, which fell to 5.63 percent from 12.32 percent in Q4 FY24.
Despite the financial downturn, the company’s sales activities remained robust. Pre-sales in the quarter reached Rs 1,282 crore, supported by a sales volume of 1.42 million square feet and collections amounting to Rs 946 crore.
The total revenue for the quarter stood at Rs 564 crore, according to its regulatory filing.
For the entire financial year, Puravankara reported pre-sales of Rs 5,006 crore, with a total sales volume of 5.67 million square feet. The average sales realization increased by 10 percent YoY to Rs 8,830 per square foot. Collections for the year reached Rs 3,937 crore, marking a 9 percent increase from the previous fiscal year.
Total revenue for FY25 was Rs 2,093 crore, and operating cash inflows rose by 10 percent to Rs 4,342 crore, as per the company’s regulatory submission.
Throughout the year, Puravankara expanded its presence in western India by acquiring four premium projects in key Mumbai locations—Lokhandwala, Pali Hill, Breach Candy, and Thane.
These projects collectively have a gross development value (GDV) exceeding Rs 9,500 crore.
In March 2025, the company unveiled its highly anticipated Purva Panorama project in Thane, Mumbai.
On Friday, shares of Puravankara closed at Rs 259.20 on the Bombay Stock Exchange (BSE), reflecting a 0.60 percent increase.
Point of View
I emphasize the importance of examining both the challenges and opportunities faced by Puravankara Limited. While their financial results reveal a troubling net loss, the strong sales activity and strategic project acquisitions indicate potential for recovery. It's crucial to remain optimistic and informed about the evolving landscape of the real estate sector.
NationPress
01/06/2025
Frequently Asked Questions
What caused Puravankara's net loss in Q4 FY25?
The net loss of Rs 88 crore in Q4 FY25 can be attributed to a significant decline in revenue and operational performance, including a 73 percent drop in EBITDA.
How much did Puravankara's revenue decline?
Puravankara's revenue from operations declined by 41 percent year-on-year, dropping to Rs 541.6 crore from Rs 920 crore.
What were the pre-sales figures for Puravankara in FY25?
In FY25, Puravankara achieved pre-sales of Rs 5,006 crore, reflecting a robust sales volume of 5.67 million square feet.
Which projects did Puravankara acquire in Mumbai?
Puravankara expanded its portfolio by acquiring four premium projects in Lokhandwala, Pali Hill, Breach Candy, and Thane, with a combined GDV of over Rs 9,500 crore.
What is the current share price of Puravankara?
As of the last trading session, Puravankara's shares closed at Rs 259.20 on the Bombay Stock Exchange, reflecting a slight increase.
