Prestige Estates Profit Down In January-March; Misses Estimates On Weak Revenue

Prestige Estates Projects Ltd.’s consolidated net profit for the March quarter slumped 82% on year to ₹250 million, dragged down by a sharp fall in revenue, lower collections, and a high base. Profit missed analysts’ estimate of ₹3.29 billion by a wide margin.

Revenue from operations dropped nearly 30% on year to ₹15.28 billion, also well below the expected ₹38.69 billion. This marked the company’s lowest quarterly revenue since the September quarter of 2022-23. Sequentially, net profit rose nearly 41%, while revenue slipped 8%.

This is the sixth consecutive quarter of year-on-year decline in net profit for the Bengaluru-based real estate company.

For the March quarter, Prestige reported sales worth ₹69.57 billion, up 48% on year. Collections, however, fell 9% on year to ₹31.55 billion. The company sold 2,301 units during the quarter, with average realisation at ₹15,524 per square foot, compared to 1,666 units at ₹11,459 per square foot a year ago.

Total expenditure declined 24% on year to ₹14.90 billion. Finance costs dropped over 32% to ₹2.86 billion. Land costs surged 49% to ₹23.94 billion, and contractor costs rose 8% to ₹11.10 billion.

Consolidated EBITDA for the quarter fell nearly 33% on year to ₹6.02 billion, with an EBITDA margin of 37.88%, down from 40.14% a year ago. For 2024-25, EBITDA declined over 27% to ₹29.45 billion, and the full-year EBITDA margin stood at 38.07%.

For 2024-25, net profit plunged 66% on year to ₹4.68 billion, while revenue fell 7% to ₹73.49 billion.
The board approved a final dividend of ₹1.80 per share for 2024-25 and a fundraise of up to ₹20 billion via non-convertible debentures.

In a separate development, Prestige signed an agreement with Valor Estate Ltd. and its subsidiaries to jointly develop a 1.50 million square foot commercial project in Sahar Village, Andheri, Mumbai, with a gross development value of ₹45 billion. Both companies will hold a 50% stake through a special purpose vehicle, with Prestige investing ₹5.04 billion.