Puravankara shares touched a day high of Rs 227.34 after its arm bagged a Rs 175 crore order for a Chennai Ritz-Carlton project.

The trigger was a Letter of Intent that Puravankara’s wholly owned subsidiary, Starworth Infrastructure and Construction Limited, received from Red Connect Private Limited for civil and structural works.

The project itself is the Ritz-Carlton development coming up at MRC Nagar in Chennai.

The contract is valued at Rs 175 crore, excluding GST, and Starworth is expected to complete the work over 32 months.

Puravankara confirmed that neither its promoters nor group companies hold any interest in Red Connect, and that the deal isn’t classified as a related party transaction.

This comes on the back of a strong quarter for the company. Puravankara reported a consolidated net profit of Rs 25.23 crore for the June quarter, a sharp turnaround from a net loss of Rs 68.55 crore in the same period last year.

Revenue from operations rose nearly 62% year on year to Rs 848.72 crore, while EBITDA nearly tripled to Rs 188.5 crore.

Margins improved too, with the EBITDA margin expanding to 22.22% from 12.73% a year earlier. There were some notable cost movements in the same results.

The company recorded an inventory adjustment of Rs 796.15 crore for flats, land stock and work in progress during the quarter, up from Rs 283.01 crore a year earlier, alongside a jump in land purchase costs to Rs 716.33 crore from Rs 57.73 crore.

Even with Friday’s gains, the stock remains under pressure over a longer stretch. It’s down close to 9% so far this year and has fallen more than 23% over the past 12 months.

Puravankara shares closed at Rs 219.36 on the NSE, up 1.37% or Rs 2.96 for the day.

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