Prestige Estates Projects Sales Down 43% In September Quarter

Prestige Estates Projects Ltd. recorded a 43% year-on-year dip in sales to Rs 4,023 crore in the second quarter of the current financial year. The total sales volume during the quarter also fell to 6.84 million sq ft.

The average realisation rose 33% to Rs 13,782 per sq. ft. for apartments, villas and commercial spaces. The average realisation for plots on the other hand fell 1.5% to Rs 6,654 per sq. ft, according to an exchange filing on Thursday.

The real estate firm reported a 4% jump in sales collection to Rs 2,737 crore in the quarter ended September.

In the first six months of this fiscal, the company recorded sales of Rs 7,052.2 crore, down from Rs 11,007.3 crore reported in the first half of the previous fiscal. The sales volumes in the first half of the current fiscal fell to 5.87 million sq. ft., while the average realisation was up 26% to Rs 13,010 per sq. ft.

Prestige Estates sold 1,366 units in the second quarter and launched three residential projects with a total development area of 8.19 million sq. ft. In the first half of this fiscal, the company sold a total of 2,730 units.

"As we move forward, the next two quarters are expected to deliver substantial growth with several major launches in the pipeline," said Irfan Razack, chairperson and managing director of Prestige Estates Projects. He added that these launches are poised to scale up the performance and set the stage for a strong finish to this fiscal.

Shares of Prestige Estates Projects closed 3.81% lower at Rs 1,793.60 apiece on the NSE, compared to a 0.28% decline in the benchmark Nifty 50. It has risen 151.12% in the last 12 months and 50.89% on a year-to-date basis.

Sixteen out of the 19 analysts tracking the company have a 'buy' rating on the stock and three suggest 'sell', according to Bloomberg data. The average of 12-month analysts price targets implies a potential downside of 1.6%.