The company reported strong growth in revenue and net profit in the third quarter Revenue from operations in Q3 stood at Rs 2,317 crore, a significant increase from Rs 1327.5 crore a year back. The net profit has also surged to Rs 127.8 crore, compared to Rs 86.6 crore same period last year.
Operating margin, however, came in at 24.78 percent in the reporting quarter as against 27.46 percent last year Prestige Estate Projects has attributed its success to the sale of 2.91 million square feet of residential and commercial spaces with an average realization of Rs 9,371 per sq ft for apartments, villas, and commercial sales, and Rs 4,148 per sq ft for plot sales.
In addition, in the third quarter of FY23, the company launched seven projects totaling 4.06 million square feet. According to Irfan Razack, Chairman and Managing Director of Prestige Group, the company’s primary focus is on timely execution, delivery, and customer satisfaction. Razack also revealed that the company has significant launches planned for the upcoming quarter in Bengaluru, Hyderabad, and Chennai. He is confident that this will enable the company to exceed its annual guidance while also maintaining sales momentum and collections.
The company expects sales of Rs 12,000 crore in FY23. The company made Rs 10,400 crore in sales in FY22. In the nine months ending December 2022, the company’s consolidated revenue from operations was Rs 5,683.2 crore. In comparison to the 11% drop in the share price of Prestige Estate Projects, shares of Sobha, DLF, Godrej Properties, and Phoenix Mills have fallen over 5–9% in the last month, while Oberoi Realty and Brigade Enterprises have risen 1 and 10%, respectively. Nifty Realty has also fallen more than 6%.
“The Nifty realty index underperformed the market by 14ppt in 2022, despite strong housing sales, on rising rates. “With the RBI rate hike cycle nearing an end and sales remaining strong, we believe real estate stocks will outperform in 2023,” Jefferies said in a January 8 report. The foreign brokerage firm continues to favor developers, including Godrej Properties and Lodha. Prestige Estates Projects is the company’s mid-cap pick. It had stated that Prestige Estates Projects had taken advantage of Bengaluru’s strong home market to become the largest selling developer in FY22 and FY23 while adding that the company could see significant upside in valuations as the Mumbai pipeline on lease business builds up and residential sales increase. Prestige Estates Projects is a Bangalore-based developer of both commercial and residential space. It has followed the joint-development model of land acquisition to scale up.
