India's Prestige Estates Projects posts Q1 profit fall on lower sales

Prestige Estates Projects

31/07/2024 14:58

BENGALURU, July 31 (Reuters) - Indian real estate developer Prestige Estates Projects  PREG.NS  posted
a 12% fall in first-quarter profit on Wednesday - its third straight quarterly profit fall - hurt by lower
sales and fewer launches.
    The company said its consolidated net profit fell to 2.33 billion rupees($27.9 million) for the quarter
ended June 30 from 2.67 billion rupees a year ago.
    It sold 1,364 units during the quarter, marking a 40% decline year on year. 
    For further earnings highlights: click (Full story)

    KEY CONTEXT
   The housing market, especially in the premium segment, has seen continued growth in the past few quarters,
with higher-end buyers remaining unfazed by inflationary pressures.
    However, the real estate sector experienced a slowdown in approvals and project launches during the
election period, contributing to a slump in sales for Prestige.
    Mumbai-based Oberoi Realty earlier reported an 82% profit jump in the June-quarter, as demand for luxury
projects sustained its momentum.   
    
    PEER COMPARISON
    
                                      Valuation       Estimates (next 12             Analysts' sentiment
                                      (next 12             months)          
                                       months)                              
                       RIC         PE      EV/EBIT  Revenue      Profit     Mean     # of      Stock to  Div
                                           DA       growth %     growth %   rating*  analysts  price     yield
                                                                                               target**  (%)
 Prestige Estates       PREG.NS     67.19    24.10     34.41       -6.72    Buy            16    1.10     0.08
 Projects                                                                                                
 Sobha                  SOBH.NS     48.16    30.42     26.43      202.85    Buy            12    0.99     0.17
 Godrej Properties      GODR.NS     81.19   123.59     36.99       31.65    Hold           17    1.11       -
 DLF                    DLF.NS      57.31    71.32     20.03       24.47    Buy            15    0.96     0.60
   
* 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
    

    APRIL-JUNE STOCK PERFORMANCE
 
 
   
    
       
-- All data from LSEG
-- $1 = 83.6550 Indian rupees 
          

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 (Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman
)
 ((anisha.ajith@thomsonreuters.com;))