Prestige Estates Shares Fall Over 8% After Q3 Earnings Missed Estimates

Shares of Prestige Estates Project Ltd. fell over 8% on Wednesday after its third-quarter earnings missed estimates.

The real estate developer's net profit fell 2% year-on-year to Rs 164.7 crore during the quarter ended December, according to an exchange filing. This compares to the Rs 269-crore estimate of analysts tracked by Bloomberg.

Prestige Estates Q3 FY24 Results Highlights (Consolidated, YoY)

• Revenue down 22.5% to Rs 1,796 crore (Bloomberg estimate: Rs 2,548 crore).

• Ebitda down 4% to Rs 551.5 crore (Bloomberg estimate: Rs 717 crore).

• Margin at 30.7% vs 24.7% (Bloomberg estimate: 28%).

• Net profit down 2% at Rs 164.7 crore (Bloomberg estimate: Rs 269 crore).

"While the sales figures in recent years have been formidable, our focus remains on execution, prompt delivery, and ensuring utmost customer satisfaction," the company said in a press release.

Prestige is gearing up for substantial projects in Bengaluru, Mumbai, and Chennai in the next quarter, it said. "These will bolster our sales, enhance collections, and fortify our presence across diverse geographical regions."

Shares of the company fell as much as 8.75%, the lowest level since Dec. 21, 2023, before paring loss to trade 3.7% lower at 11:49 a.m. This compares to a 0.6% decline in the NSE Nifty 50.

The stock has risen 171.22% in the last 12 months. Total traded volume so far in the day stood at 0.59 times its 30-day average. The relative strength index was at 34.83.

Of the 20 analysts tracking the company, 17 maintain a 'buy' rating, one recommends a 'hold' and two suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 8.7%.