Puravankara's Bold Expansion Plans Amid Financial Challenges

Puravankara Limited reports a 16% revenue increase in Q3FY25, posting a Rs 99 crore loss due to delayed project handovers and expansion costs. Despite this, positive cash flow and strategic investments in land acquisitions position the company for future growth, with an anticipated addition of 7+ million sq ft to its portfolio.

Puravankara Limited, a prominent real estate developer in India, has reported a 16% surge in total revenue from projects for the nine-month period ending December 31, 2024. However, the company faced a net loss of Rs 99 crore during this period, largely due to delayed project handovers and costs associated with its aggressive expansion in the western region.

The developer's strategic move included the acquisition of four prime projects in Mumbai's Lokhandwala, Pali Hill, Breach Candy, and Thane, adding a potential gross development value (GDV) of over Rs 9,000 crores. Despite the incurred costs, Puravankara's performance indicates potential future profits, as suggested by its positive profit before tax under the Percentage of Completion method.

In response to the procedural delays affecting occupancy certificates and project handovers, Managing Director Ashish Puravankara expressed confidence in the company's growth strategy. With customer collections up by 19% and a robust land acquisition pipeline, the company is poised to expand its land bank to align with its growth ambitions.