Puravankara share price fell close to 8 per cent on poor Q1 results on NSE today. Realty firm Puravankara Projects Limited today reported a 67 per cent decline in consolidated net profit at Rs.10.24 cr for the quarter ended June 30, 2016 on lower sales. Its net profit recorded at Rs.30.72 cr in the year-ago period.
The Bengaluru-based developer said in a regulatory filing that its income from operations slumped 32 per cent to Rs.311.35 cr in the first quarter of the current fiscal from Rs.456.52 cr in the same period of the previous year.
Meanwhile, Puravankara share price was trading 7.65 per cent at Rs.50.70 on NSE in the early morning trade, thereby registering itself in the list of ‘top losers’ for the day. The scrip opened at Rs.51.95 from a previous closing of Rs.54.90.
The company's finance cost rose to Rs.62.35 cr from Rs.54.61 cr during the June quarter under review. Company's MD Ashish Puravankara said that they were witnessing a strengthening of their business in comparison to earlier periods on project deliveries, collections, sales which have increased from ready-to-move-in and favorable balance-collections against balance-cost-to-go owing to many of their current projects having sold more than 50 per cent.
The MD said, however, a move by the local government with regards to the demolition of buildings in Bengaluru which were built in violation of 1905 map of Bangalore with regards to drains was affecting the industry and also sentiment of the buyers.
Puravankara concluded that none of their projects were impacted by this move and they believed that once this negative publicity in the local market was removed, their efforts on unlocking value in the business would coincide with a pick-up in the real estate market. For more details, visit Puravankara share price history.
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