Puravankara Projects may recast debt payments

Puravankara Projects may recast debt payments

Mumbai: Realty company Puravankara Projects Ltd may consider restructuring part of the Rs279 crore of debt it has to repay over the next 12 months, if the real estate market does not improve, an official said on Monday.

“We believe we’ll be able to manage that. In some cases, we may have to reschedule these repayments," Ravi Ramu, director, told analysts during a conference call. “I think by the end of Q1 (first quarter ending 30 June) we would have gotten a better picture of how things are... Right now, it’s just in very early stages."

As of 31 March, the firm’s debt stood at Rs788 crore, and it had a debt-equity ratio of 0.58, it said in a statement.

The developer saw better sales in April as home lending rates decreased, Ramu said. “In April we saw a small uptake but not enough to say good times are back. The situation all over is grim."

Revenue in the quarter ended 31 March slid to Rs67.9 crore from Rs153.9 crore a year ago, as inflated prices and high interest rates deterred home purchases. The credit crunch also slowed project completion.

Its net profit in the latest quarter dropped 80% to Rs14.6 crore. Puravankara has 13 residential projects and two commercial projects under development with an area of 13.44 million sq.ft.