India's Prestige Estates Q2 revenue growth slows as approval delays drag on launches

Prestige Estates Projects

29/10/2024 15:34

Oct 29 - India's Prestige Estates Projects  PREG.NS  reported slowing second-quarter revenue growth on Tuesday, as
delayed approvals weighed on property launches in its mainstay Bengaluru market.
    The company's revenue from operations rose 3% to 23.04 billion rupees ($274 million), compared to a 57% jump in the
year-ago quarter, as the number of apartments it sold in the July-to-September period slumped 63% year-over-year.
    The growth was also lower than that in the first-quarter, when Prestige's revenues had risen 11%. 
    Profit slumped 77% on-year in the reported quarter, mainly on the back of a fall in other income. 
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3M519Q
    

    KEY CONTEXT
    
    Growth in the number of apartments Prestige sold in the reported period was flat sequentially, while July-to-September
was the fourth straight quarter its profit fell. 
    Analysts warned that launch approvals from the Bengaluru Real Estate Regulatory Authority (RERA) were delayed in the
quarter, weighing on the company's fresh launches, as well as peers Sobha  SOBH.NS  and Brigade Developers  BRIG.NS .
    Property launches in Bengaluru rose 7% year-over-year in the reported quarter, real estate consultancy firm Anarock data
showed. In the year-ago quarter, too, launches grew 7% in Bengaluru. 
    India's housing sector has seen sustained demand for home ownership over the past few quarters, particularly for
higher-margin premium properties.
    
    
PEER COMPARISON 
    
                                    Valuation     Estimates (next 12 months)           Analysts' sentiment        
                                    (next 12                                                                      
                                     months)                                                                      
                      RIC         PE     EV/EBI  Revenue growth  Profit growth   Mean     # of      Stock to      Div yield
                                         TDA     (%)             (%)             rating*  analysts  price         (%)
                                                                                                    target**      
 Prestige Estates      PREG.NS    55.05   22.85      26.81            5.18       Buy            15      0.88            0.11
 Projects Ltd                                                                                                     
 Sobha Ltd             SOBH.NS    35.19   24.12      25.02           137.12      Buy            13      0.77            0.19
 Brigade Enterprises   BRIG.NS    39.41   19.47       5.41           31.61       Buy             9      0.87            0.17
 Ltd                                                                                                              
 
    
* 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
    
JULY-SEPTEMBER STOCK PERFORMANCE 
    
    
-- All data from LSEG IBES

-- $1 = 84.0330 Indian rupees

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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Pooja Desai)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))