Prestige Estates Projects Faces Stock Decline Among Market Volatility

Reputed Real Estate Prestige Estates Projects shares declined 2%. The stock has declined 10% over the last 1 month. However, the company has great plans across real estate markets in major cities. Despite their delays, Prestige Estates is gearing up to launch new projects worth Rs 30,000 Crores this quarter.

A lot of new projects are planned across major Indian cities, including Delhi, Mumbai, Bangalore, and Chennai. One of the top 10 new launch projects is Prestige Southern Star, which is a gated community apartment project with 1, 2, 3, 3.5, and 4 BHK sizes.

With regulatory approvals that will be received soon, Prestige Estates aims to meet its annual sales of Rs 24,000 Crores. Most of the projects are filed under RERA and will soon be launched to the market.

Despite the challenges faced in the nine months of this year, Prestige Group MD Irfan Razack is confident of getting Rs 24,000 Crores in sales bookings. He has noted that 40% of newly launched projects sell quickly after hitting the real estate market. They are expecting to generate Rs 12,000 Crores from new launches and its existing inventory.

During the April to Dec period of FY25, there was a 38% decline in sales bookings to Rs 10,065.7 Crores. Delays in getting the project approvals limited the total number of new launches, which resulted in this shortfall.

In FY24, Prestige Estates got sales bookings of Rs 21,040 Crores, marking a 63% increase YoY. The performance showed the group’s capacity to scale operations and capitalize on other market conditions.

For the December quarter, there was an 85% drop in net profit, falling to Rs 17.7 Crores from Rs 116.3 Crores. Total income is also limited to Rs 1,697.9 Crores from Rs 1,970.5 Crores.

Prestige Estates has launched a lot of high-profile projects that are nearing the final stages of clearance and will be launched soon. The company anticipates getting its lost momentum and boosting sales through these strategically located projects.