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Bengaluru-headquartered realty major Puravankara Ltd achieved its highest-ever quarterly sales of Rs 1,600 crore in the July-September period, the company said in a statement on Tuesday.
The stability of unchanged interest rates is a significant catalyst, promoting growth and encouraging potential buyers to invest in the residential market, the statement noted.
The company’s Q2FY24 sales more than doubled compared to Rs 791 crore in the corresponding period of FY23. The company did not share its detailed financials with the Bombay Stock Exchange, saying it would do so next month.
“As we embark on the path of driving incremental growth, our focus on new acquisitions is a key element of our expansion strategy,” said Ashish Puravankara, Managing Director, Puravankara Limited.
Overall, for the first half of the ongoing fiscal year, the combined sales figure stood at Rs 2,725 crore, reflecting a 109% jump when compared to Rs 1,304 crore in H1 FY23.
Customer collections surged to Rs 879 crore, as price realisation increased by 7% annually to Rs 7,947 per square feet during the period.
The company which runs three distinct residential brands - Purva, Provident Housing Limited and Purva Land - launched one new project and added two new phases to existing projects during the period under review.
This comes after the Income Tax Department raided about 40 premises of the company last week in Mumbai, Hyderabad and Bengaluru.
“This was a routine search, which is a standard operating procedure for the department, for the entire industry,” said company chief executive Abhishek Kapoor, adding that he does not see the exercise impacting the company’s business in the future. “No unaccounted cash or transactions were found,” he added.
Elaborating on emerging trends in the industry, Kapoor said: “Larger homes are selling better and the consolidation continues because of which you’ll see the larger players taking a greater share of the market.”
According to a recent report by property consultancy Anarock, the share of affordable housing supply slumped during the second quarter as the luxury segment continues on a bull-run.
“Clearly, for the segment priced at Rs 40 lakh and under, the government needs to put in a serious amount of subsidy for it to work,” Kapoor opined, citing high land, interest and construction costs.
He sees prevailing global macroeconomic uncertainty leading to volatile crude prices and inflationary pressures, as a potential headwind for the sector which may lead to a surge in raw material prices.
Kapoor however remains optimistic for the back half of the year which has traditionally roped in more business for the industry. Overall, for the year, he sees high single digit increment in prices in the sector.