Prestige Estates stock reacts to 82% fall in Q4 net profit

Prestige Estates shares were trading higher on Friday even as the firm reported a 82% decline in Q4 net profit. The stock rose to Rs 1533.70 on Friday against the previous close of Rs 1501 on BSE. Total 0.19 lakh shares of the firm changed hands amounting to a turnover of Rs 2.93 crore. Market cap of Prestige Estates stood at Rs 64,221 crore on BSE. Prestige Estates reported a significant decline in its fourth-quarter net profit, falling 82% to ₹43 crore compared to the previous year's figure. This drop comes amid a challenging environment where the company's EBITDA margin contracted by 285 basis points to 35.4% from the previous year's 38.25%. However, it showed a slight improvement of 16 basis points over the third quarter of FY25.

Prestige Estates' new sales declined by 19% to ₹17,023.1 crore, impacted by the postponement of launches due to approval delays, falling short of its guidance range of ₹23,000 crore to ₹24,000 crore. Sales volume also decreased by 38% year-over-year to 12.58 million square feet, while collections rose by 1% to ₹12,084 crore, still below the guided ₹16,000 crore.

The company noted a substantial increase in the average realisation for apartments, villas, and commercial products, which rose by 36% to ₹14,113 per square foot. Additionally, plot sale realisation increased by 50% to ₹7,167 per square foot. Bengaluru was a major contributor to total sales, accounting for 45%, followed by Mumbai at 30%, and Hyderabad at 23%.

Prestige Estates also entered the NCR market with its Indirapuram project, which holds a gross development value exceeding ₹12,000 crore. The firm completed several key projects in Mumbai, delivering over 800 units across 2.8 million square feet, further diversifying its market presence.

Despite the challenges, "Prestige Group's chairman and managing director Irfan Razack said that despite the delays in the project approvals that deferred a few key launches into the next level, the final quarter saw strong traction in sales and an encouraging uptick on realisations." Prestige Estates shares closed at ₹1,507.8 on Thursday, May 29, showing a gain of 3.86%. Over the past month, the stock increased by 9.65% and maintained a positive trend over five consecutive trading sessions prior to the earnings announcement, reflecting market confidence in the company's long-term prospects despite immediate hurdles.