Q1 2027 Puravankara Ltd Earnings Call Transcript
Key Points
- Puravankara Ltd (BOM:532891) reported a 28% year-on-year increase in pre-sales to INR1,439 crore, with sales volume up 9% and average realizations up 18%.
- Collections grew 40% year-on-year to INR1,199 crore, indicating strong operating cash flow and conversion of sales into liquidity.
- The company returned to profitability with a positive PAT of INR25 crore, a significant improvement from a loss of INR69 crore in the same quarter last year.
- Total income increased 63% year-on-year to INR877 crore, supported by higher handovers of 745 homes (0.95 million square feet).
- Management reaffirmed its FY27 pre-sales guidance of INR11,200 crore and debt reduction guidance of INR700 crore, expressing confidence in the launch pipeline and demand environment.
- The company is actively pursuing capital recycling, exemplified by the definitive agreement to sell Purva Generique to ICICI Prudential AMC for an enterprise value of approximately INR625 crore, which will enhance financial flexibility.
- Puravankara Ltd (BOM:532891) added four new projects in Bengaluru with a development potential of 4.23 million square feet and an estimated GDV of INR5,200 crore, strengthening its presence in key micro-markets.
- The company's EBITDA margin expanded to 25% from 5% in Q1 FY26, reflecting improved operating leverage and project mix.
- Net debt remains high at INR2,836 crore with a net debt-to-equity ratio of 1.57 times, and the average cost of debt is elevated at 11.12%.
- The launch of several key projects, including West End, Hennur Road, and Cityspire, was delayed from Q1 to Q2 FY27 due to approval-related issues, particularly in Karnataka.
- The company made significant land payments of INR574 crore during the quarter for new acquisitions, which could strain liquidity and impact near-term cash flows.
- While the company returned to profit, the management cautioned that one quarter does not define an earnings trajectory, and revenue recognition remains dependent on project completion and handovers.
- The company's growth is heavily reliant on the timely receipt of approvals and consistent execution across its launch pipeline, which has shown some vulnerability to delays.
- Management indicated that debt reduction is a dynamic process and that opportunities for investment may compete with the goal of deleveraging, potentially slowing the pace of balance sheet improvement.
Earnings conference call for Purvankara Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Savita Singh. Thank you and over to you, ma'am.
Thank you, Avirat. Good morning, everyone. I, Savita Singh, on behalf of Dolat Capital. Welcome you all to the Q1 FY27 Earnings Conference Call of Purvankara Limited. I would like to thank the management for giving us this opportunity to host the call. Today, from the management team, we have with us Mr. Ashish Purvankara, Managing Director; Mr. Mallanna, CEO of South; Mr. Rajat Rastogi, CEO of West and Commercial Assets; and Mr. Neeraj Gautam, CFO.
I now hand over the call to the management for their opening remarks. Forward to you, sir.
Good morning, everyone. I am Neeraj Gautam, CFO of Purvankara Limited, and I welcome you to Purvankara Limited's earning conference call to discuss our
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