High tax bites into Puravankara's profits

Growth in company’s operating profits in the September quarter, however, had jumped up by 87 per cent to Rs 87.98 crore, but provision for high tax in the quarter (Rs 30.30 crore against Rs 86 lakh), drastically lowerd the psot-tax profit.

Purvankara Projects Director Ravi Ramu explained that tax was high because of Rs 40 crore net profit from the sale of land and also because some of the properties developed by the company did not have any tax benefit to claim.
The company’s revenue for quarter at Rs 226.39 crores in the September quarter was 62 per cent higher than previous year’s Rs 139.37 crore. The consolidated net profit for the half year ended 30 September 2009 was Rs 71.10 crores on an income of Rs. 282.36.

“The net profit margin for the quarter ended 30 September 2009 was 27 per cent on the back of a robust gross profit margin of over 45 per cent,“ Ramu said.
During the quarter Provident Housing, the 100 per cent affordable housing subsidiary of Puravankara Projects Limited, has launched its first two projects totaling 5,534 homes covering an area of 5.69 million sft. The company sold over 1,200 apartments in these two projects.

Puravankara Chairman & Managing Director, Ravi Puravankara said: We have witnessed a distinct improvement in the market environment during this quarter and indications are that this trend will continue in the foreseeable future. Our market positioning is currently such that the medium to long-term prospects of the Group look particularly bright.”

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