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Puravankara reports Q1 net loss of Rs 17 cr

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Consolidated net sales tumbled 71.1% to Rs 182.35 crore in Q1 June 2020 over Q1 June 2019. Consolidated pre-tax loss stood at Rs 22.85 crore in Q1 June 2020 compared with pre-tax profit of Rs 64.85 crore in Q1 June 2019. Current tax expense slumped 98.7% YoY to Rs 0.15 crore in Q1 June 2020. The Q1 earnings were announced after trading hours yesterday, 11 September 2020.

The COVID-19 and the nationwide lockdown has adversely impacted the economy in general and real estate in particular. The demand for housing saw a sharp decline in Q1 FY21 while labour exodus led to further slowdown in construction. The company said that construction activity is resuming. Currently it is at 60% of pre-covid levels. Owing to halt in registrations because of lockdown and no completion of projects during the quarter, revenue recognition was impacted. However the same is likely to pick up pace in coming quarters. With a focussed approach towards cash flow management, the firm expects to meet all our financial obligations.

Cash and cash equivalents stood at Rs 166 crore in Q1 FY21 compared with to Rs 190 crore in Q1 FY20. Net debt fell 6.59% to Rs 2,521 crore in Q1 FY21 from Rs 2,699 crore in Q1 FY20.

Puravankara is a real estate company engaged in the development and construction of residential and commercial properties.

Shares of Puravankara slipped 1.59% to close at Rs 43.20 on Friday. The scrip surged 50.78% from its 52-week low of Rs 28.65 hit on 24 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 40.231 as on Friday, 11 September 2020. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was below its 50-day moving average (DMA) placed at 44.72 and its 200-day moving average (DMA) placed at 47.37.