Prestige Estates Projects (PRESTIGE) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw sales of INR 3,030 crore (2.86 million sq ft, 1,364 units), with collections of INR 2,916 crore and major launches totaling 1.86 million sq ft, primarily in Bengaluru.

• The company has a 38-year legacy, diversified across residential, commercial, retail, and hospitality, and holds top developer ratings from ICRA and CRISIL.

• Consolidated revenue from operations for Q1 FY25 was Rs. 18,621 million, up from Rs. 16,809 million in Q1 FY24.

• Consolidated net profit for Q1 FY25 stood at Rs. 3,070 million, compared to Rs. 3,178 million in Q1 FY24.

• Standalone revenue and profit declined year-over-year, with standalone revenue at Rs. 3,971 million and net profit at Rs. 192 million.

Financial highlights

• Q1 FY25 revenue reached ₹20,245 mn, up 2.96% year-over-year, with EBITDA at ₹9,587 mn (margin 47.35%) and PAT at ₹3,070 mn (margin 15.16%).

• Consolidated EBITDA for Q1 FY25 was Rs. 5,550 million, up from Rs. 4,058 million in Q1 FY24.

• Gross margins at 35%, EBITDA margins improved to 25%-27% (historically 22%-23%), with a one-time mark-to-market gain of INR 87 crore/₹874 mn on Nexus/REIT retail unit.

• Interest and finance charges declined sequentially due to JV accounting adjustments.

• Consolidated net worth as of June 30, 2024, was Rs. 1,15,217 million; total debt was Rs. 1,10,573 million.

Outlook and guidance

• Management maintains 25%-30% growth guidance for FY25, expecting strong sales as new inventory is launched.

• Strong pipeline with 28 upcoming residential projects (73 mn sq ft) and 5 commercial projects (8 mn sq ft), with continued focus on Mumbai and NCR.

• Multiple launches planned in Bangalore, Mumbai, NCR, Chennai, and Goa in upcoming quarters.

• Robust demand and positive market sentiment expected to continue.

• The Board recommended a final dividend of Rs. 1.80 per share for FY24, subject to shareholder approval.