Mumbai, Aug. 27 -- Shares of Puravankara rose five per cent after its wholly owned subsidiary Starworth Infrastructure & Construction received a letter of intent from Red Connect Private Ltd to undertake civil and structural works for a Ritz-Carlton development at MRC Nagar in Chennai.
The contract is valued at Rs 1,750 million (mn), excluding GST, and the company said the project is expected to be executed over a period of 32 months.
Puravankara filed the details in an exchange filing and said the award was granted by a domestic entity. The company stated the contract does not involve any interest of its promoter, promoter group or group companies in the awarding entity and confirmed the transaction is not a related party dealing. Market reaction to the announcement lifted the stock in intraday trade.
In the June quarter the group reported a consolidated net profit of Rs 252.3 million (mn) compared with a net loss of Rs 685.5 million (mn) in the year ago period. Revenue from operations rose 61.8 per cent year on year to Rs 8,487.2 million (mn) from Rs 5,244.0 million (mn), while earnings before interest, tax, depreciation and amortisation increased to Rs 1,885.0 million (mn) and the EBITDA margin expanded to 22.22 per cent from 12.73 per cent. The company said these gains accompanied operational adjustments and higher sales.
The financial statement showed an inventory adjustment of Rs 7,961.5 million (mn) for flats, land stock and work in progress, compared with Rs 2,830.1 million (mn) a year earlier, and higher land purchase costs of Rs 7,163.3 million (mn) from Rs 577.3 million (mn). Following the order announcement the share price touched an intraday high of Rs 227.34 and was trading at Rs 220.20, up 1.76 per cent as of 1.37 pm. The stock has declined nearly nine per cent so far this year and by 23 per cent over the last 12 months.
Published by HT Digital Content Services with permission from Construction World.