Puravankara Projects Poor 4QFY09 Results

Puravankara Projects 4QFY09 revenues declined 56% YoY while net profit declined 80% YoY largely on account of a sharp 18.2ppt decline in EBITDA margin to 17%. 4QFY09 EBITDA was adversely impacted by a write-down of Rs41.5m in the value of completed properties held for sale. EBITDA margin declined 350bps QoQ due to an increase in staff cost and SG&A expenses. For FY09, revenues and net profit declined 21% and 40% YoY respectively, while the EBITDA margin declined 700bps to 30.7%.

Area under construction is stagnant at 13.4m sq ft in 4QFY09, indicating that construction has not started on any new projects and that no existing projects were completed during the quarter.

During the quarter the company launched its first affordable housing project under the Provident Housing brand in Chennai at very attractive price points of Rs1720-1820/sf. It is offering apartments with ticket sizes in the range of Rs1.4m to 2.0m per unit, which has met with an encouraging response with its Phase-I of 518 apartments already sold out.