REPEAT
Prestige Estates Apr-Jun consol PAT seen down 62% YoY
This story was originally published at 09:00 IST on 31 July 2024
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By Narayana Krishna
HYDERABAD - Real estate developer Prestige Estates Projects Ltd is likely to report a 62% fall in its Apr-Jun consolidated net profit to 1.02 bln rupees due to the absence of major launches, analysts said. However, the Bengaluru-based company’s revenue for the quarter is seen up 32% year-on-year at 22.12 bln rupees, according to an average of estimates from four brokerages. The spike in revenues was mainly led by healthy growth in the annuity business and improved collections, analysts said.
Analysts' estimates for Prestige Estates' June quarter net profit vary significantly, with the lowest estimate from Kotak Institutional Equities at 115 mln rupees and the highest from Nuvama Wealth at nearly 3 bln rupees. The estimates for revenue range from the lowest by HDFC Securities at 18.6 bln rupees to the highest by Nuvama Wealth at 30.4 bln rupees.
In its quarterly update to the stock exchanges, Prestige Estates said the company’s Apr-Jun sales were down 23% year-on-year, while collections were up 6%. The total sales volume for the June quarter fell to 2.86 mln sq ft from 3.83 mln sq ft a year ago. Sequentially, the company’s net profit is seen down 27% while revenue is seen up 2%, the estimates show. The company is scheduled to announce its Apr-Jun results on Jul 31.
HDFC Securities, in its pre-earnings note, said the company’s June quarter pre-sales saw a 22% decline, which may affect performance. The brokerage expects 10.6% year-on-year growth in revenues but a 14% fall sequentially. Kotak Institutional Equities said Prestige Estates' revenues may see 20% year-on-year growth, aided by a healthy contribution from the annuity business, although dragged down by the hospitality and residential business. Brokerage Motilal Oswal expects Prestige Estates' June quarter pre-sales to decline 11% year-on-year due to a lack of major launches.
On the margins front, analysts have mixed views on Prestige Estates' Apr-Jun earnings before interest, tax, depreciation, and amortisation or EBITDA margins. While HDFC Securities expects the EBITDA margin at 29.7%, down by 164 basis points year-on-year, Kotak Institutional Equities sees it at 32.6%, up 122 basis points. Motilal Oswal expects a 25% EBITDA margin for the quarter.
The average of estimates from four brokerages for Prestige Estates' Apr-Jun EBITDA is 6.4 bln rupees. Analysts expect commentary from the company on the sales outlook and launch pipeline for the coming quarters.
Following are the Apr-Jun earnings estimates for Prestige Estates Projects, based on reports compiled by Informist from four brokerage houses:
Broker name | Net Sales | Net Profit | EBITDA (in mln rupees) |
---(In mln rupees)--- | |||
HDFC Securities Ltd | 18,593.00 | 774.00 | 5,519.00 |
Kotak Institutional Equities | 20,165.00 | 115.00 | 6,566.00 |
Motilal Oswal Financial Services Ltd | 19,330.00 | 230.00 | 4,932.00 |
Nuvama Wealth Management Ltd | 30,411.00 | 2,975.00 | 8,756.00 |
Average | 22,124.00 | 1,023.00 | 6,443.00 |
At 1037 IST, shares of Prestige Estates traded 4.9% higher at 1847 rupees on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Vidhi Verma
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