Prestige Estates Projects Q3 Results Review - On Track To Exceed Full-Year Guidance: Motilal Oswal

Motilal Oswal Report

Prestige Estates Projects Ltd. reported pre-sales of Rs 53 billion in Q3 FY24, up 111% YoY (7% higher than estimate), driven by the successful launch of its Prestige city project in Hyderabad, which generated sales of Rs 25 billion. Overall, Prestige Estates Project launched three new projects with a developable area of 15 million square feet.

Sales volume increased 88% YoY to 5.5 msf and blended realisation increased 13% YoY to Rs 9,762/square feet due to price growth and premium mix.

Total collections in Q3 increased by 36% YoY/19% QoQ to Rs 31 billion. Prestige Estates Projects generated operating cash flow of Rs 15 billion, which was utilised for capex (Rs 6 billion) and land/transferable development rights investments (Rs 6.8 billion). Net debt was flat QoQ at Rs 70 billion with net debt equity ratio of 0.6 times.

P&L performance: While Prestige Estates completed overall 4 million square feet of projects in Q3 FY24, deliveries in the residential segment remained low at 0.3 million square feet.

Hence, revenue was down 22% YoY/20% QoQ at Rs 18 billion (25% below estimate).

However, Ebitda declined 4% YoY to Rs 5.5 billion, aided by a ~600 basis points increase in Ebitda margin to 31%. Other income jumped 5 times YoY to Rs 1.7 billion.

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