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Informist, Friday, May 30, 2025

By Arya S. Biju and Simran Rede 

MUMBAI – A double-digit on-year fall in revenue, lower collections, and a high base dragged down Prestige Estates Projects Ltd.'s bottom line for the March quarter. The company's top line for the latest quarter was the lowest since the September quarter of 2022-23 (Apr-Mar). 

The consolidated net profit for the March quarter fell 82% to INR 250 million from INR 1.40 billion in the year-ago quarter, lower than analysts' estimate of INR 3.29 billion by a wide margin. This is the sixth straight quarter in which the company's bottom line fell year-on-year. The company's consolidated revenue for the quarter fell nearly 30% on year to INR 15.28 billion, also failing to meet analysts' estimate of 38.69 billion by a wide margin. Sequentially, the consolidated net profit rose nearly 41%, while revenue fell nearly 8%. 

For the reporting quarter, the real estate developer reported sales worth INR 69.57 billion, up 48% on year. Its collections for the quarter were INR 31.55 billion, down 9% on year. The company sold 2,301 units during the quarter, with an average realisation of INR 15,524 per square feet compared to 1,666 units sold in the year-ago quarter with an average realisation of INR 11,459 per square feet.  

The company recorded total expenditure of INR 14.90 billion in the latest quarter, down 24% on year. The Bengaluru-based company incurred lower finance costs for the quarter, with the metric falling over 32% on year to INR 2.86 billion. Its land cost for the quarter was INR 23.94 billion, up 49% on year, and contractor costs were INR 11.10 billion, up 8% on year. 

For the financial year ended March, the company reported a consolidated net profit of INR 4.68 billion, down 66% from the previous year. Its revenue for the same period was INR 73.49 billion, down 7% from the previous year.

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the quarter fell nearly 33% on year in the reporting quarter to INR 6.02 billion. The EBITDA margin for the quarter was 37.88%, down from 40.14% in the year-ago quarter. For FY25, the real estate major's EBITDA fell over 27% on year to INR 29.45 billion and its EBITDA margin was 38.07%.

Along with the March quarter earnings, the company announced final dividend of INR 1.80 per share for FY25. Its board also approved raising of up to INR 20 billion through non-convertible debentures. The company has signed an agreement with Valor Estate Ltd. along with its wholly-owned subsidiaries Esteem Properties Pvt. Ltd. and Advent Hotels International Pvt. Ltd. to jointly develop a project on around 21,978.22 square metres, it said in a separate exchange filing. 

The project will have a total leasable area of around 1.50 million square feet and gross development value of around INR 45 billion. Both Valor Estate and Prestige Estates will have a 50% financial interest in the project. The companies will form a special purpose vehicle for the development of the project. Prestige will infuse INR 5.04 billion into the special purpose vehicle.

Prestige Estates announced its March quarter earnings late Thursday. Shares of the company closed at INR 1,500.90 on the National Stock Exchange, up 3.4% from Wednesday's close.  End

Edited by Avishek Dutta

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