Commenting on this strategic advancement, Ashish Puravankara, Managing Director, Puravankara Limited, said, “We are thrilled to announce the acquisition of a prime 12.75-acre land parcel in Thane, further solidifying our commitment to MMR’s sustainable and dynamic real estate market. This strategic expansion in Thane is in addition to our recent announcements of redevelopment projects in Pali Hill and Lokhandwala. We have added over Rs 7,500 crores of GDV to our MMR portfolio between these three acquisitions. Our continued investment in MMR reflects our vision to deliver international quality homes with trust and transparency.“

In November 2023, Puravankara secured rights to undertake the redevelopment of two housing societies spanning 3 acres in the Lokhandwala area of Andheri West. The project has a development potential of 5.8 lakh sq ft carpet area and a potential GDV of Rs 1,500 crores. In April 2024, the company was selected as the ‘preferred developer’ for a 2.5-acre redevelopment project in Pali Hills with a development potential of 4.10 lakh sq ft carpet area and a potential GDV of over Rs 2,000 crores.

“The land parcel acquisition in Thane is the third major announcement from Puravankara in the past seven months. We will build a high-end, mixed-use residential project with a GDV of Rs 4,000 crores. We look forward to launching this project during the festive season this financial year with a vision to develop one of the finest projects in Thane. Puravankara is focused on incorporating sustainable development across its projects. The Thane project will be built with these principles in mind,” said Rajat Rastogi, CEO – West & Commercial Assets, Puravankara Limited.

The land parcel is strategically located in Patlipada on Ghodbunder Road- a micro-market highly preferred by discerning home buyers due to the value-laden proposition, connectivity advantages, and robust social infrastructure. The upcoming metro line 4 will further improve the area’s connectivity. Additionally, the Eastern Freeway extension will provide seamless accessibility to South Mumbai, while the Thane Borivali twin tunnel project under the Sanjay Gandhi National Park (SGNP) will significantly reduce travel time between the Eastern and Western Express highways. The project will also enjoy captivating views of a 30-acre botanical garden and the SGNP, giving residents ample lung space.

Also Read: India’s Data Centre boom to drive 10 million sq. ft. real estate demand

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Situated in the heart of Lokhandwala in Andheri West, the project is spread over 3 acres. It has a cumulative estimated development potential of 5.8 lakh square feet carpet area, with approximately 3.65 lakh square feet available for sale and a potential gross development value (GDV) of INR 1,500 crore over the project’s lifecycle.

Commenting on the strategic advancement, Abhishek Kapoor, Group CEO of Puravankara Limited, said, “We are thrilled about this significant milestone as it marks our entry into the redevelopment segment. This strategic move also underscores our commitment to expanding our footprint in Mumbai’s thriving real estate market. At Puravankara, we are committed to delivering high-quality, sustainable, and modern homes that meet the evolving needs of our customers.”

Speaking on the transaction, Rajat Rastogi, CEO – West & Commercial Assets- Pan India said, “Andheri- Lokhandwala has emerged as a prominent hotspot in Mumbai’s realty map due to several ongoing and upcoming infrastructure projects. With Puravankara’s customer-focused approach and expertise in delivery excellence, this redevelopment project will be a marquee project. We look forward to bringing our expertise and experience to this development. Our team of experts will work closely with societies to ensure a smooth and seamless redevelopment process. We are committed tocreating vibrant communities and curating exceptional living environments that residents will be proud to call home.”

As Puravankara remains dedicated to pursuing avenues for expansion, the company plans to launch two new projects in Pune this fiscal year. This move is part of a broader plan to enhance its development potential by acquiring new land parcels. The primary emphasis continues to be on executing distinguished projects in well-connected locations across the western region.

Also Read: 87 Land Deals for 1862+ Acres Closed in FY-23

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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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By Varun Singh

Residential real estate has been on a steady and resilient growth trajectory, especially in the last quarter. Despite the shadow of uncertainty cast by the third wave, the segment continued to witness a surge in demand and sales. This is evidenced in a recent report which indicates a 71% rise in quarterly housing sales compared to last year. We are optimistic that the rising aspiration for homeownership and favorable market forces will help sustain the sector’s growth momentum. This, in turn, will positively impact the country’s economic development. The same is reflecting in our quarterly sales performance.

We would like you to take note of our key operational updates for Q4FY22:

A.  Key Sales highlights

• Sales FY22Total sales volume of 3.52 msft with a total sales value of INR 2406 Crore; clocking highest ever sales value for the company since inception.Sales volume from under-construction inventory up by 51% in comparison to FY21

• Sales Volume Q4FY22 – Area sold stood at 1.19 msft, up by 20%, compared to 0.99 msft in Q4FY21

• Sales Value Q4FY22 – Sales value stood at INR 829 Crore, up by 10%, compared to INR 753 in Q4FY21

• New Launches – Of the 6 projects launched during the year, 4 projects were launched in Q4; Tree Haven, Provident Winworth, Purva Southbay and Sparkling Springs

~~First plotted project by the Group in Chennai market (Purva Southbay) was sold out in 48 hours from launch

B. Debt and cash flows – Cash flow remained healthy during the quarter resulting in net debt reduction.

C.     Performance Summary:

Other matters: AIF – The Company’s wholly owned subsidiary received approval from the SEBI for an INR 750 crore, category II fund, under the Alternative Investment Fund (AIF) guidelines, 2012.

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