Mumbai: Bangalore’s Puravankara Projects Ltd has said its outlook for sales in ongoing projects are far from optimistic, largely in line with a slump in India’s realty sector following an economic slowdown.
“Puravankara, as distinct from Provident, has not seen sales that may make us feel that happy days are here again,” chief financial officer Ravi Ramu said.
Puravankara last year launched a wholly owned subsidiary, Provident Housing and Infrastructure Ltd, to build so-called affordable houses. Puravankara’s current projects account for a major portion of its Rs757 crore debt. However, the subsidiary’s Chennai project has sold around 600 apartments.
The company has chalked out ambitious plans to launch projects to build around 10,000-12,000 apartments this fiscal, but its potential cash flow might not positively impact the 11 ongoing projects of its parent, industry experts said.
Even if the company’s new projects are successful, the resultant cash flow will have to ploughed back into Provident as it will have to buy land and fund construction at the same time, the people said on condition of anonymity. It would, therefore, be difficult for Puravankara to generate cash flows from selling apartments that are priced between Rs40 lakh and Rs1 crore and also meet construction deadlines, they said.