Analyst Concall
Prestige Estates confident of meeting FY25 sales guidance
This story was originally published at 21:09 IST on 30 October 2024
Register to read our real-time news.Informist, Wednesday, Oct. 30, 2024
Please click here to read all liners published on this story
--Prestige Estates: To launch projects in Delhi, Chennai in Oct-Dec
--Prestige Estates: To launch projects in Bengaluru, Hyderabad in Oct-Dec
--CONTEXT: Comments by Prestige Estates mgmt in post-earnings analyst call
--Prestige Estates: Confident of achieving annual sales guidance
--Prestige Estates: See INR 250 bln development value from Oct-Dec launches
--Prestige Estates: New project launches to begin by end of November
--Prestige Estates: Prestige White Meadows will be first Oct-Dec launch
--Prestige Estates: Hyderabad project sales saw blip for 2-3 wks on rumours
--Prestige Estates: Hyderabad business now back to normal
--Prestige Estates: 3,000 out of 4,700 units at Prestige City Hyderabad sold
--Prestige Estates: Sold 600 units worth over INR 20 bln at Raintree Park
--Prestige Estates: Closing 2-3 large deals in Bengaluru
--Prestige Estates: Don't want real estate prices in Bengaluru to rise more
--Prestige Estates: Demerger of hospitality business is being structured
--Prestige Estates: Prestige Oakville project in Bengaluru dropped
--Prestige Estates: Actively negotiating for plots in Panvel, Thane
By Aman Aryan
MUMBAI – Despite reporting weak sales of just INR 70.5 billion in Apr-Sept, Prestige Estates Projects Ltd. reassured investors about meeting its annual sales guidance of INR 240 billion to INR 250 billion in 2024-25 (Apr-Mar). The company will likely book sales of INR 160 billion in Oct-Mar, the company's management Wednesday said in a post-earnings conference call. The management also said it expects to cross the FY25 sales guidance by the end of the year. To meet even the lower end of the guidance, the company needs to book sales of INR 170 billion in the second half of the current financial year.
The company also said that it expects launches worth INR 520 billion of gross development value in the second half of the year, out of which projects worth INR 250 billion of gross development value will be launched in the next quarter. The real estate developer said the launches in the ongoing quarter will begin either from mid or end of November with Prestige White Meadows as the first launch of the quarter. Prestige White Meadows is a Bengaluru-based residential project with a total developable area of 500,000 square feet.
The company said it has several launches lined up for Oct-Dec in Chennai, Hyderabad, Goa, Bengaluru, and the National Capital Region. Prestige Estates said it is already closing out on two to three large deals in Bengaluru and has leased about 5.2 million square feet since the beginning of 2024. For Hyderabad, the company said the business is now back on track after a short blip of softer sales for 2–3 weeks due to some rumours. Prestige City in Hyderabad has already sold 3,000 units out of 4,700 units. About 26% of the half-yearly sales for Apr-Sept had come from Hyderabad, the company said. The company said its newly launched Prestige Raintree Parl got a strong response as it has sold over 600 units worth over INR 20 billion.
Prices have already jumped up in Bengaluru, the company said, and added it doesn't "want the price to go up much more than this". The company said it remains conscious about pricing while continuing to protect its margins. However, the company said it doesn't want super margins. The company also said it has dropped its Bengaluru project Prestige Oakville. Prestige Estates is actively negotiating for lands in Mumbai Metropolitan Region and it will "probably buy these lands" if it finds them reasonable, the company said.
The management said the company is endeavouring to buy off the remaining 24% stake held by Pinnacle Investments in its subsidiary Prestite Projects Pvt. Ltd. to make it a wholly-owned subsidiary. The management said it was a positive move for the company as it plans to further dilute the related party external shareholder's stake. The management also said that the proposed demerger of its hospitality business is still in its structuring phase, and it is too early to ask for shareholder's approval.
It is getting longer to get approvals for buildings, the company said, and added the approving authorities have "too many tomorrows when unfortunately we have no tomorrow". The company said there is a mismatch in how the government functions. However, it later said it is hopeful of getting faster approvals going forward. Prestige Estates reported a 43% on-year fall in its sales for Jul-Sept. 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. Its consolidated revenue for the quarter rose 3% to INR 23.04 billion from INR 22.36 billion a year ago.
Wednesday, the shares of the company closed at INR 1,646.25 on the National Stock Exchange, up 2.6%. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
