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Informist, Tuesday, Oct. 29, 2024

 

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--Prestige Estates Jul-Sept consol net profit INR 1.92 bln 
--Analysts saw Prestige Estates Jul-Sept consol net profit INR 1.72 bln 
--Prestige Estates Jul-Sept consol PAT INR 1.92 bln vs INR 8.51 bln year ago 
--Prestige Estates Jul-Sept consol revenue INR 23.04 bln vs INR 22.36 bln 
--Prestige Estates Apr-Sept consol PAT INR 4.25 bln vs INR 11.18 bln yr ago 
--Prestige Estates Apr-Sept consol revenue INR 41.67 bln vs INR 39.17 bln 

 

By Aman Aryan

 

MUMBAI – Increased contractor costs and other expenses, coupled with a high base, saw Prestige Estates Projects Ltd. post the highest on-year fall in bottom line in the last 17 quarters in the September quarter. The slightly-better revenue of the real estate developer and a one-time tax credit could not push its overall earnings parameters higher.

 

The company's consolidated net profit for the September quarter fell 77.4% to INR 1.92 billion, from INR 8.51 billion in the year-ago quarter. This was slightly better than the Street's view of INR 1.72 billion. The company's consolidated revenue for the quarter rose 3% to INR 23.04 billion, from INR 22.36 billion a year ago. Sequentially, the company's consolidated net profit fell 17.4%, while the revenue rose 23.8%.

The company's consolidated net profit fell sharply due to a high base in the year-ago quarter when its other income had risen about 22 times, boosting its consolidated net profit. Other income for the latest quarter fell 88.3% to INR 1.19 billion. 

 

The company also incurred higher contractor costs and other expenses. The Bengaluru-based company's contractor cost rose 14% on year to INR 8.86 billion and other expenses rose nearly 38% to INR 6.07 billion. Finance costs rose 35% to INR 3.57 billion in the latest quarter. However, the company incurred a lower land cost for the latest quarter, with the metric falling over 46% on year to INR 5.12 billion.

 

The company made a one-time adjustment of INR 991 million in the latest quarter as it reassessed its deferred tax liabilities after the government revised the long-term capital gains tax to 12.5%, without indexation, in the Union Budget. Without this one-time adjustment, the company's consolidated net profit would have fallen nine times compared to the year-ago quarter. While the company's net profit margin contracted sharply to 10.2% in the September quarter from 40.7% a year ago, its operating profit margin expanded to 27.4% from 26.5% a year ago. 

 

For Apr-Sept, the company's consolidated net profit plunged to INR 4.25 billion from INR 11.18 billion a year ago. However, its consolidated revenue rose to INR 41.67 billion from INR 39.17 billion a year ago. The company released its quarterly results after market hours Tuesday and its shares closed 3% lower at INR 1,604.90 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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