India's Prestige Estates posts smaller Q3 profit on slow deliveries, high land costs

Oberoi Realty

13/02/2024 14:09

Feb 13 (Reuters) - India's Prestige Estate Projects  PREG.NS  reported a smaller third-quarter profit
on Tuesday, hurt by higher land costs and slower deliveries of projects.
    The company's consolidated net profit fell 9% to 1.16 billion rupees (about $14 million) from 1.28 billion
rupees in the October-December quarter, during which it launched three projects.
    Revenue from operations fell 22.5% to 17.96 billion rupees. Land costs, which form the majority of total
expenses, rose 55% in the quarter.
    For further highlights, click here: (Full Story)
    
    KEY CONTEXT
    Indian real estate developers have raced to acquire new parcels of land to meet a surge in residential
demand as homebuyers lap up new apartments, despite higher borrowing costs.
    At least 97 land deals were closed in 2023, up from 82 deals in 2022, data from real estate consultancy
firm Anarock showed.
    Prestige Estate's Bengaluru-based rival Sobha's  SOBH.NS  quarterly profit halved due to slower project
deliveries too, while Oberoi Realty's  OEBO.NS  net profit more than halved hit by weak residential business.
    
    PEER COMPARISON 
                             Valuation (next    Estimates (next 12    Analysts' sentiment            
                             12 months)         months)                                              
                  RIC        PE       EV/EBITD  Revenue    Profit     Mean     # of       Stock to   Div yield
                                      A         growth%    growth%    rating*  analysts   price      (%)
                                                                                          target**   
 Prestige          PREG.NS   46.69    18.53     18.57      -13.48     Buy      16         1.09       0.13
 Estates                                                                                             
 Sobha             SOBH.NS   34.90    18.85     24.14      148.64     Buy      12         0.98       0.22
 Godrej            GODR.NS   64.51    93.50     33.50      48.53      Hold     17         1.11       --
 Properties                                                                                          
 DLF               DLF.NS    60.00    72.24     19.94      28.79      Buy      15         1.03       0.50
  * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
  ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT

   OCTOBER-DECEMBER STOCK PERFORMANCE 
   
 
 -- All data from LSEG
 -- $1 = 83.0420 Indian rupees
    


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
OCT-DEC STOCK PERFORMANCE    https://tmsnrt.rs/3wflhyJ
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Anisha Ajith, Hritam Mukherjee and Meenakshi Maidas in Bengaluru; Editing by Savio D'Souza)
 ((anisha.ajith@thomsonreuters.com;))