Key takeaways of the conference call

• The company's consolidated net sales declined by 9% to Rs 73.19 crore while net profit increased by 18% to Rs 30.49 crore for the quarter ended December 2009.

• The net profit margin for the quarter was 42% on the back of a robust gross profit margin of 54%. The margins in the current quarter have been boosted due to a rise in the prices of finished homes sold during the quarter and a lowering of the estimated costs to completion of certain projects. The consolidated results this quarter include a modest revenue contribution from the affordable housing segment, which is expected to increase in the coming quarters.

• The company's consolidated net sales declined by 6% to Rs 355.55 crore while net profit decreased by 22% to Rs 101.59 crore for the nine months ended December 2009.

• The first two projects of Provident Housing, the 100% affordable housing subsidiary of Puravankara Projects , have a total of 5,534 homes covering an area of 5.69 million sft. The first project in Chennai, Provident CosmoCity, measures 2.23 million sft. and comprises 2,174 apartments. Provident's second project, Provident Welworth City in Bangalore, is a 3.46 million sft township with 3,360 apartments and includes over 0.2 million sft of retail space. The price range of homes in these two projects is between Rs 15 lakhs and Rs 20 lakhs. The company has sold 60% of the flats of Provident Housing.

• 40 million sq. ft. of area will be developed under Provident Housing in next 2 years.

• The company is thinking of coming with an IPO of Provident Housing in next 1.5 to 2 years time.

• The area currently under development by the Puravankara Group is 19.13 million sq. ft. with projects spread across Bangalore, Chennai, Hyderabad, Cochin and Kolkata.

• There are 15 on-going residential projects, 13 of Puravankara Projects and 2 of Provident Housing.

• 12 million sq.ft. of areas across 4 cities is under pipeline. 6 million sq. ft. of areas will be developed in next 6 to 9 months.

• The current land bank has been recently further augmented through land acquisitions in Coimbatore and currently stands at 125.39 million sq. ft. of developable area.

• The company has debt to equity ratio of 0.51 and a relatively modest net debt of Rs 751.38 crore as at 31 December 2009.

• The company is considering of raising debt for future new projects.

• The company has taken 3 set of price hike uptil now. 2 prices hike taken in last 8 to 9 months and one recently. On an average 10% to 15% price has been taken in Q3 across most projects. Despite price hike, sales continue to be strong.

• The company's 90% flat sold are in the range of Rs 35 lakhs to Rs 65 lakhs.

• The management on the future prospect said that "We are encouraged by recent buoyant market trends and consequently plan to launch large projects in the premium segment in Chennai, Cochin and Bangalore. These projects are slated for launch in the coming two to three quarters. Our medium to long-term prospects look particularly bright considering the marked improvement in market conditions and the number of projects we expect to launch across all housing segments in the near future."