This Realty company, which has a diversified business ranging across segments like Office, Residential, Hospitality, Retail, Warehouses, and Property Management has given a revenue guidance of Rs. 24,000 crore pre-sales for FY25.
Price Movement
Prestige Estates Projects Limited‘s stock in Monday’s session was trading at Rs. 1,628.65 per share down by 1.29 percent from the previous closing price of Rs. 1,649.95. The stock has delivered a return of around 48 percent in the past year and has outperformed the Nifty Index in the same period.
Business Segments
As per the recent September 2024 results, the company recognizes its revenue from operations from external customers which are related to real estate development in India.
As of H1FY25, the revenue from the Office segment contributes around 3.69 percent, Retail by around 3.3 percent, Hospitality by around 9.96 percent, Services by around 5.28 percent, Residential by around 71.37 percent, and others by around 6.3 percent.
The Residential segment contributes more than half of the bottom line of the company followed by the retail segment which contributes around Rs. 225 crore and then hospitality, services, and office as of H1FY25.
Future Outlook
The company in FY25 aims for a revenue of around Rs. 24,000 crore pre-sales as per the management. The company expects to launch 2 or 3 projects having more than Rs. 50,000 crore Inventory at different stages of approval.
From the Residential there are 32 projects which are upcoming with 69 million sqft with expected projects collective Gross Development Value (GDV) in FY25 is around Rs. 5,211 crore.
In Commercial space, 7 projects are upcoming with 8 million sqft with remaining capex spending including ongoing and upcoming collectively around Rs. 9,687 crore.
In Retail space, there are 12 projects which are upcoming in 13 million sqft with collectively (ongoing and upcoming) around Rs. 3,446 crore.
In the Hospitality segment, 11 projects are upcoming with 2,128 keys, and a balance capex to spend is around Rs. 2,893 crores.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 2,304 crore which increased by 3 percent year on year, from Rs. 2,236 crore in Q2FY24 and a 24 percent increase from Rs. 1,862 crore in Q1FY25. Their net profit declined by 74 percent year on year, from Rs. 910 crores in Q2FY24 to Rs. 235 crores in Q2FY25. Quarterly, the profits were down by 23 percent from Rs. 235 crore.
The debt-to-equity ratio was 1.08 times increased from 0.87 times in FY23. The RoE in FY24 stood at 15.32 percent improved from 8.57 percent a year ago. However, the RoCE stood at 15.02 percent which has improved from 10.43 percent in FY23.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 60.95 percent stake in Prestige Estates Projects, Foreign Institutional Investors (FII) holding around 19.12 percent, Domestic Institutional investors (DII) standing at 16.75 percent, and public holdings standing at 3.19 percent.
About the company
Prestige Estates Projects Limited was founded in 1986 and based in Bangalore. It is one of the prominent real estate developers in India. They specialize in segments including residential, commercial, retail, and hospitality projects. With over 300 completed projects covering approximately 180 million square feet, Prestige focuses on delivering developments such as luxury villas, apartments, and tech parks. By maintaining a strong presence across major South Indian cities, Prestige aims to meet the growing demand for real estate.
Written by Santhosh S
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