Commenting on the company’s performance, Ashish Puravankara, Managing Director, Puravankara Limited, said, “We have recorded the highest ever sales booking of Rs. 2,100 Cr. in the first nine months of the financial year. This outstanding result was supported with the launch of seven new projects in 9MFY23, as well as the continuing interest by home buyers in our ongoing projects.”

On Puravankara’s future plans he said, “We will continue to work towards expanding our market share, and we are excited to announce that in Q3FY23 the group has achieved increased revenue from projects by 77%, increased collection from operations by 87% from construction and delivery against the similar quarter in the previous year. This is supported by increased sales and new launches of over 4.11 msft in 9MFY23 with the last quarter of the current financial year adding another 2.17 msft. Our per Sq. Ft. of debt on under construction area has reduced by 49% from Rs. 2,524 to Rs. 1,291 over the last four years.

Our focus continues to be on the customer with our ‘You philosophy’, and the results are a testament to the team’s commitment, anchored by Puravankara’s value loads of quality, trust, and customer experience.”

Highlights

Operational Highlights for Q3FY23

· Area sold stood at 1.02 msft (+3% Y-o-Y)
· Sales value stood at Rs. 796 Cr. (+20% Y-o-Y)

· Sales realization stood at Rs. 7,767 per Sq. Ft. (+15%Y-o-Y)

Consolidated Q3FY23 Financial Performance
· Net Revenues stood at Rs. 410 Cr. (+67% Y-o-Y)
· EBITDA stood at Rs. 128 Cr. (+51% Y-o-Y)
· Profit After Tax stood at Rs. 21 Cr. (1,213% Y-o-Y)

Cash Flows
As on 31st Dec 2022,
· Balance collections from sold units (completed + ongoing) in all launched projects stood at Rs. 2,643 Cr.
· Total estimated value of unsold inventory open for sale stood at Rs. 5,641 Cr.
· Total estimated pending project cost to be incurred stands at Rs. 3,517 Cr.
· Total balance estimated collection from sold and unsold inventory including not open for sale is Rs. 12,582 Cr.
· Total estimated surplus after construction cost and contingency is 6,774 Cr.

Debt
The overall net debt reduced by Rs. 109 Cr., from Rs. 2,144 Cr. (as of Q2FY23) through operations, while debt increased by Rs. 100 Cr. (in Q3FY23) owing to land acquisition resulting into overall net debt of Rs. 2,135 Cr.
While the repo rate increased over a 12-month period by 225 bps, cost of debt for the group has increased by only 67 bps. The weighted average cost of debt stood at 11.18% as of 31st December 2022. Net debt to equity ratio stood at 1.09 for Q3FY23.

Outlook

In spite of the rise in home loan rates, we see sustained strong demand, particularly for grade A developers. The government’s focus on infrastructure, investment and housing for all in the budget is commendable. The steep hike in outlay for the PM Awas Yojana by 66% to Rs. 79,000 Cr. will give the much-needed fillip to the affordable housing sector. Estimated growth rate of over 6% for the Indian economy for the next financial year is likely to support the current momentum of sales in the real estate sector.

Also Read: Budget Growth Oriented, Needed More Thrust to Real Estate to Spur Demand: NAREDCO

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A real estate investment is not only an emotionally intensive decision but also a financially heavy one. While investing in a property, an investor is in perpetual confusion about whether to invest in a ready-to-move-in property or an under-construction one. While a ready property allows for immediate possession, an under-construction property lets you take possession at a later stage and deposit the finances accordingly. Here is a low-down on why this is the best time to invest in an under-construction property.

Affordable Interest Rates

Despite the falling rupee value against the dollar, the interest rates in India have not risen exponentially. If you wish to invest in an under-construction property, the banking institutions are more than ready to disburse loan, subject to the financial conditions of the borrower. Affordable home loans are available within the interest rate range of 8-12 percent. While the tenure is 15 plus years or more, it puts no burden on the borrower and he/she can repay the loan in the long term.

No immediate Burden

Under-construction properties are very suitable if the finances are a concern. Unlike ready properties where the entire residential unit has to be paid upfront, the under-construction property allows a homebuyer to repay the easy home loan in regular EMIs. With a lot of financing options from banks or NBFCs, you can consider an under-construction property over a ready one.

Attractive Offers

While promoting their real estate projects, the realty developers provide attractive offers such as a rebate on payment of stamp duty, partial payments for booking, no-cost EMI facilities, payment starting after possession and upfront discounts for serious buyers. An under-construction property would not be too heavy on your pocket and you will have an asset of the lifetime.

Opportune Time

In the backdrop of the Coronavirus pandemic, the real estate sector is getting back on its feet. Real estate prices are not steep and still affordable as compared to their heydays. Serious homebuyers must make use of this once-in-a-lifetime opportunity for investment as once the sector is fully recovered, the prices would skyrocket and will render properties costly. Meanwhile, the projects which are under construction can be booked with only 10 percent of the cost in most cases. If you do not have a requirement immediately, an under-construction project is best for you.

New Construction

A key advantage of buying an under-construction property is that it gives you freshly constructed property. Unlike a property available for resale, you cannot estimate the quality of construction beyond a limit. In under-construction investment, the new construction ensures that the life of the building will be better than a property in resale.

Appreciation Potential

When you decide to book an under-construction property, you get the possession after 2-3 years in most cases. If you change your mind and wish to sell the property, the returns will be far better than a ready property as the construction would be new and the investors would be more willing to spend on this property than on an older one. Moreover, under construction command a better return on investment than the ready properties in general.

Conclusively, there cannot be a more opportune time to invest in under-construction real estate properties. The Covid-19 pandemic has resulted in the price correction to a great extent. However, it is also true that the prices will not go down further. This makes it an apt period to invest in an under-construction property. However, the buyers are advised to check for the RERA registration of the developer and other factors before investing.

About the author: Mukesh Goel, is Partner Auric Group.

Note: views expressed in this article solely belong to the author and do not represent the views of SquareFeatIndia.com

Also Read: CIDCO constructs 96 flats in 96 days

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By Varun Singh

National Real Estate Development Council (NAREDCO)-an apex real estate body which works under the aegis of Ministry of Housing & Urban Affairs, Govt of India has signed a Memorandum of Understanding (MoU) with Paints and Coatings Skill Council (PCSC) for the growth and development of skilled paints’ workers along with research and advocacy in the paints and coatings sector.

The MoU aims to promote and propagate certification of large untapped unskilled workforce working primarily in the paints and coatings sector, an integral part of the Real Estate and Construction sector. NAREDCO has identified the need of significant initiatives which sets up a platform for the workforce to get officially recognized and certified as per the National Skill Qualification Framework (NSQF) aligned job roles and occupations recognized by PCSC.

Rajan N Bandelkar, President, NAREDCO stated that “The foremost objective of this MoU is to incentivize the industry players and mandate the certification of their uncertified workforce across their different areas of suitable operations. Both the organizations will be in mutual co-operation on setting the skilling targets and promoting the underlying technical knowledge related to the sector. This collaboration will be beneficial for both the parties and also the paints skill ecosystem.”

NAREDCO, in response to the PCSC’s contribution to skill development will also promote the organization’s initiatives in conclaves and summits organized by NAREDCO. In the process, it will also extend all possible support to PCSC in relation to real-estate and the paints sector.

Jagdish Acharya, CEO, PCSC endorsed the views of the President, NAREDCO and said, “Our association will lead to improvement in skill development and making jobs aspirational. Better workmanship and productivity will lead to better compensations. We will need to make Skill recognition all pervasive and only then they will be valued”. Both the organizations committed themselves to propagate & promote sustainable and green initiatives and finding solutions which would align with imperatives of the Environment, Energy conservation and Economic considerations. The two see advocacy as a critical need and advancement of best practices as a key objective.

PCSC will also propose to make NAREDCO a governing council member so that the initiatives are promoted successfully and will also recognize NAREDCO as a leading industry association striving for the skill development of paints’ workers.

Also Read: Sandeep Runwal takes charge as the new NAREDCO Maharashtra President

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By Varun Singh

Recovering from the pandemic-induced slowdown, the residential real-estate industry demonstrated inherent strength in Q1’ 2022, with pan India housing demand rising 4.6% QoQ and 6.7% YoY, reveals Magicbricks’ latest PropIndex Report for Q1’ 2022.Mapping trends in 13 cities across the country, the report highlights that Mumbai (15.2%), Gurugram (9.6%), Noida (8.2%) and Delhi (5.6%) witnessed highest QoQ growth in demand while Greater Noida (6.0%), Mumbai (3.8%), Ahmedabad (3.2%), and Chennai (2.9%) exhibited maximum QoQ growth in supply. The report also shares that delivery, size, location, connectivity and amenities are significant deciding factors for homebuyers and homes located in gated communities with health and security facilities have emerged as most preferred.

Elaborating on the same, Sudhir Pai, CEO, Magicbricks commented, “Increasing project completions, attractive offers from developers, supportive policies and improving employment opportunities have boosted buyer-confidence in the real-estate industry. While the present geopolitical situation is impacting the supply chain and input costs, we expect the momentum gained thus far to continue across demand and supply backed by new launches tailored to the evolving needs of consumers and all-time low home loan interest rates. In each of the cities mapped, the peripheral areas continue to be hotspots of demand driven by infrastructure development. These trends signal optimism and a stable outlook for the industry for the coming quarters.”

Market specific take-aways from Report Q1’ 2022:

1. Bengaluru’s housing demand increased 3.7% QoQ. There was continued preference for bigger homes; 2BHK and 3BHK constituted 79% of the total demand and 81% of the total supply.

2. Chennai’s residential market is driven by demand in affordable localities, which accounted for 68% of total demand. The supply witnessed a growth of 2.9% QoQ and is likely to continue increasing in the coming quarters with new project launches, indicating a healthy outlook.

3. Delhi’s housing demand grew 5.6% QoQ while the average price increased 0.4% QoQ. The residential market was dominated by 3BHK and above configurations that constituted 64% of the demand. In Noida and Greater Noida, the aggregate demand for residential markets witnessed a 6.8% QoQ growth, whereas supply increased 0.2% QoQ and average prices increased 2.1% QoQ.

4. Demand in Mumbai’s residential market increased 15.2% QoQ. New residential launches increased the supply by 3.8% QoQ; while average prices increased 1.4% QoQ. The demand and supply for 2BHK configuration constituted 40% and 42% respectively in Q1’ 2022.

5. Pune’s housing demand and supply observed a QoQ increase of 3.9% and 2.2%, respectively. Home buyers are inclined towards 2BHK configuration; 2 and 3 BHK units commanded the bulk of the demand with a combined share of 78%.

Highlights from Report Q1’ 2022

– The pan India demand increased 4.6% QoQ and 6.7% YoY. Mumbai (15.2%), Gurugram (9.6%), Noida (8.2%) and Delhi (5.6%) witnessed highest QoQ growth in demand.

– The cumulative supply remained stable during the quarter while showing a growth of 4.7% YoY. Greater Noida (6.0%), Mumbai (3.8%), Ahmedabad (3.2%), and Chennai (2.9%) witnessed maximum QoQ growth in supply.

– The pan-India prices increased 1.3% QoQ and 6.4% YoY, reflecting resilience of the housing markets vis-a-vi other real estate assets

– The prices of ready to move properties increased 1.7% QoQ and 5.8% YoY. Thane, Greater Noida, Kolkata, Ahmedabad, and Bengaluru witnessed maximum QoQ price increases of 3.6%, 2.8%, 2.2%, 2.1% and 2.0% respectively.

– The prices of under-construction properties were largely stable during the quarter with an increase of 0.6% QoQ nationally. Prices in Noida, Delhi, Chennai, Ahmedabad, and Hyderabad saw QoQ increases of 7.4%, 3.5%, 2.1%, 1.6%, and 1.6% respectively.

The report further predicts an onward trajectory for 2022 due to external stimuli such as digitisation of land records, increased allocation of INR 48,000 crores under PM Awas Yojna and PM Gati Shakti, that are expected to further strengthen infrastructure and boost investments in the real estate sector.

Also Read: Many Homebuyers Expect Housing Prices Hike in 2022

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By Varun Singh

On Tuesday, CREDAI-MCHI’s Women’s wing had organised a programmed for the construction workers of its members.

At this program Former Secretary and Chief Executive Officer Shri. S. C. Srirangam of Maharashtra Building and Other Construction Workers Welfare Board was the Chief Guest. Nilambari Bhosale, Deputy Commissioner of Labour, Rajashri Patil, Assistant Labour Commissioner (City) were the Guest of Honor.

Srirangam said, that there are thousands of housing construction sites in Mumbai and MMR division, employing 2 to 2.5 lakh workers, but the number of registered workers is only approximately thirty thousand and this number needs to be increased.

Actually when Nilambari Bhosale spoke the main reason why these workers should get registered came out. There are multiple benefits that these construction workers can avail of. From education of their children to medical facilities.

Here are the various welfare schemes that a construction worker can avail once he registers with the state government’s labour commission.

I: Social Security
Reimbursement of Rs.30,000/ for first marriage Expenses
Midday Meal Scheme
Pradhan Mantri Shram Yogi Maaan-dhan Scheme
Assistance of Rs 5000/ for purchase of Tools
Pradhan Mantri Jeevan Jyoti Vima Yojna
Pradhan Mantri Suraksha Vima Yojna
Recognition of Prior Learning Training
Providing Safety Kit
Providing Essential Kit

II: Education: All the benefits under this head are applicable only for 1st two children of registered construction workers.
1.1st class to 7th standard students Rs 2500/year
8th class to 10th standard students Rs 5000/year (75% 0r more attendance compulsory)
2.10 to 12 class students Rs.10,000/year (for securing 50% or more percentage)

3. 11 to 12 class students Rs.10,000/year
4. For degree course Rs.20,000/year (also applicable for wife of registered construction worker)
5. Medical Degree Rs 100000/-
   Engineering Degree Rs.60,000/- (applicable for wife also)
6. Diploma course Rs 20,000/year
   Post-Graduation Diploma Course Rs 25,000/year (Government approved courses only)
7. Reimbursement of MSCIT course

III: Health Care
1.Normal Delivery Rs. 15,000/-
Surgical Delivery Rs.20,000/-

2. For Treatment of critical illness of Rs.100000/- for registered construction workers and his/her family members.
3. Fixed Deposit of Rs.100000/-till girl child attend her age of 18 ( has to go contraceptive surgery after birth of 1st girl child)
   4.75& 0r permanent disability of Rs.200000/-
4. Mahatma Jyotibai Phule Jan Arogya Yojna
5. Health Check-up
   IV: FINANCIAL
   1.Accidental death during during course of work at the construction site Rs.500000/-(to the legal heir)
6. Financial Assistance for Natural Death Rs.200000/-
7. Atal Bandkam Kamgar Yojna (Urban)
   4.Atal Bandkam Kamgar Yojna (Rural)
8. Funeral Assistance (Rs.10.000a/)
   6.Assistance of Rs.24000/yr for widow or widower of registered construction worker for 5 years.
   7.Rs.600000/ for Home Loan from bank for purchase of house or Rs.200000/- grant

Developers pay a 1 per cent cess for workers to avail these welfare services from the Government.

The construction worker who wishes to register needs to provide a certificate from the contractor he’s working with a 90 day working certificate for the year.

Now the department has even made the filing of the registration form online, enabling the construction workers to register online.

Some of the construction workers were provided with the registration ID on Tuesday at the event.

Also Read: Rs 900 Crore Tender For Reconstruction of MLA Hostel In Mumbai

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By Varun Singh

The Income Tax Department (IT) initiated search and seizure operations on a real estate group, engaged in the construction of residential and commercial projects, in Mumbai and Navi Mumbai Region on November 25.

The group where the IT Dept carried out the search operations is mainly into development of slum rehabilitation projects. The search action covered around 30 premises.

The search action by the IT Dept unearthed various methods of tax evasion adopted by the group.

Several documentary and digital evidences have been found and seized demonstrating receipt of cash to the tune of Rs.100 crore, as part of consideration on sale of flats, which is not accounted for in the regular books of account.

The fact of receipt of on- money on such transactions is also corroborated in the statements recorded during the search proceedings.

IT Dept says, “The modus operandi adopted by the group includes issuing of promissory notes equivalent to the on- money component to the customers and these promissory notes are destroyed after registration of the flat.”

Incriminating evidence regarding unaccounted cash payments made not only to the original tenants of the slums for vacating the dwelling unit but also to some other persons for facilitating vacation of the properties by slum dwellers has been found and seized.

The dept says, “Further evidences suggesting irregularities and violation of guidelines of Slum Rehabilitation Authority (SRA) have also been detected.”

According to the IT dept, the preliminary analysis of evidences revealed that the group has acquired controlling stake in a company by paying consideration in cash.

“Defaults on compliances to the provisions of tax deduction at source have also been found. The assessee group did not deduct tax at source on certain payments claimed by it which aggregate to more than Rs 300 crore,” said the department.

As a result of the search action, unaccounted cash exceeding Rs 6.00 crore has been seized. Further investigations are under progress.

Also Read: Is A Homebuyer Protected If SRA Terminates Builder?

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