An over 3.5-times increase in provisioning for taxes and dip in share of profit in associates have caused a 6 per cent dent in real estate developer Puravankara Projects' net profits for the third quarter of this fiscal to Rs 28.6 crore, compared with Rs 30.49 crore recorded during the corresponding quarter of last year.

The company has provided Rs 11.83 crore for taxes this quarter, and a significant portion of this provisioning has come from that done for the company's affordable housing arm, Provident Housing. Its share of profits in associates was down significantly to Rs 27 lakh (Rs 6.38 crore).

“Net profit is subdued due to a number of ongoing projects, and the revenue of which is yet to be realised. However, revenue and net profit will be higher as the projects are sold in the future,” said Mr Jackabastian Nazareth, Chief Executive Officer, Puravankara Projects.

However, revenues during the quarter more than doubled to Rs 173.45 crore (Rs 73.19 crore). While 40 per cent of the company's revenues have come from Provident Housing, the affordable housing arm's share in net profits is 22-23 per cent.

The company plans to launch an 8.4-million sq ft development in Bangalore, Mysore, Chennai and Coimbatore under the Puravankara brand, and another six million sq ft in Bangalore under Provident brand.

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