The contract is valued at ₹175 crore, excluding GST, Puravankara said in an exchange filing on Friday. The project is expected to be executed over a period of 32 months, the company added.
The order has been awarded by Red Connect, a domestic entity, and covers the execution of civil and structural works for the Ritz-Carlton project in MRC Nagar, Chennai.
Puravankara said the contract does not involve any interest of its promoter, promoter group or group companies in the awarding entity.
The company also said the contract does not fall under related-party transactions.
Q1 results
Puravankara reported a consolidated net profit of ₹25.23 crore for the June quarter, compared with a net loss of ₹68.55 crore in the year-ago period. Revenue from operations rose 61.8% year-on-year to ₹848.72 crore from ₹524.40 crore.
The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased to ₹188.5 crore from ₹66.7 crore, while the EBITDA margin expanded to 22.22% from 12.73% a year earlier.
The company’s financial statement also showed an inventory adjustment of ₹796.15 crore during the quarter for flats, land stock and work-in-progress, compared with ₹283.01 crore a year earlier. This came alongside higher land purchase costs, which rose to ₹716.33 crore from ₹57.73 crore in the year-ago quarter.
Shares of Puravankara surged 4.9% to an intraday high of ₹227.34 following the order win announcement and were trading at ₹220.20, up 1.76% as of 1.37 pm. The stock has declined nearly 9% so far this year and more than 23% over the last 12 months.
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