CRISIL has reaffirmed developer rating to Puravankara Projects Limited, Bangalore (PPL). The rating signifies that the developer has a very good track record in executing real estate projects as per specified quality levels and transferring clear title within the specified time schedule.

The rating continues to reflect the company's established track record in executing real estate projects as per specified quality levels and in transferring clear titles within the specified time schedule. The rating, obtains comfort from PPL's experienced & professional team and strong development and project execution capabilities. The strong project execution capability is due to integrated & streamlined work process and strong project development & monitoring systems. In 2004, PPL has implemented the ERP system integrating all its operations and providing real time information.

The rating factors PPL's strong customer focus and marketing strategies that has helped to create a strong brand identity in Bangalore residential real estate market with an ability to charge premium for its development. The company benefits in selling its projects to customers at an early stage of constructions by mitigating demand risks and substantially financing its projects through customer advances.

There has been a significant increase in the scale of operations. In 2004, PPL sales & profits rose by 86% to Rs. 76 Crores and Rs. 15.2 Crores respectively. Moreover, the company enjoys better margins as compared to other players in the industry due to in-house construction activities.

Also, PPL's concentration in single geographical area (i.e. Bangalore) exposes it to a moderate market risk. To mitigate the concentration risks, PPL, is planning developments in other cities like Cochin, Hyderabad, Chennai and Colombo.