Puravankara jumps 7% after nearly doubling annual revenue

Shares of Puravankara surged over 7% after the company posted record quarterly and annual sales. The company said its sales surged 90% year-on-year in FY24 to ₹5,914 crore while revenue for the March quarter stood at ₹1,947 crore, up 93% compared to the same period last year.

Customer collections increased by 60% to ₹3,609 crore for the fiscal, the company said in its filing to the exchange. Average price realisation for the company increased by 2% to ₹7,916 per square feet during FY24. This is attributed to an inventory mix between Purva, Provident Housing and Purva Land brands, it said.

Puravankara launched 11 new projects during the year, having a saleable area of 9.47 million square feet, spread across Bengaluru, Chennai and Pune.

“As per a NARDECO report, India's real estate sector is projected to grow at a compounded annualised growth rate of 18.7% from 2020 to 2030. The trajectory, moving from a market size of $180 billion in 2020 to a projected $1 trillion by 2030, is fuelled by a growing economy, thereby increasing incomes and moving more and more Indians into higher social strata,” the company said in the statement. “Puravankara remains poised to capitalise on these opportunities.”

Puravankara shares are up 265% over the past one year, outpacing the BSE Realty index, which has also zoomed 134% in the same period. India’s real estate sector has been on an upswing over the past few years, with demand rising across residential and commercial spaces.

According to a report by Knight Frank, residential property sales in India’s eight biggest cities rose nearly 9% in the March quarter while gross leasing of office space surged 43%. In particular, the sector is seeing demand at the upper end of the market, with sales of luxury homes recently outpacing affordable housing for the first time ever.