Prestige Estates Projects Q2 Results Review

Prestige Estates Projects Ltd. reported pre-sales of Rs 71 billion, up 102% YoY (29% higher than estimate of Rs 55 billion), driven by the successful launch of “Prestige Park Grove” project in Bengaluru, which generated sales of Rs 46 billion.

Overall, Prestige Estates Projects launched five new projects with a developable area of 13 million square feet in Q2 FY24.

Volumes increased 50% YoY/79% QoQ to 6.8 msf and blended realisations were up 34% YoY to ~Rs 10,400/square feet, due to price growth and premium mix.

Total collections in Q2 remained flat YoY at Rs 26 billion and the company generated operating cash flow of Rs 11 billion. Continued spend on capex and business development resulted in net debt increasing by Rs 5 billion sequentially to Rs 70 billion with net debt/equity of 0.6 times.

P&L performance: Prestige Estates delivered 2.2 msf of projects during the quarter. Revenue was up 57% YoY/33% QoQ to Rs 22.4 billion (6% above estimate) and Ebitda increased 61% YoY to Rs 5.5 billion, aided by 70 bp increase in Ebitda margin to 26.5%.

Other income grew three times YoY to Rs 1.7 billion, driven by fair value gain on residual stake held in Nexus REIT. Additionally, Prestige Estates also recognised Rs 8.5 billion as other income on account of gain resulting from the acquisition of 100% stake in BKC projects. Adjusted profit after tax increased 174% to Rs 1.86 billion.

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