by THO
Bengaluru-based realty player Prestige Estates plans to launch four projects across Mumbai and Bengaluru in the July-September quarter of the ongoing financial year, Irfan Razack, chairman and managing director of the company said during an investors’ call on August 1. Additionally, the company is looking to launch three projects in the Delhi-NCR market during the October-December quarter.
“In August and September, we should see at least 3-4 launches in Bengaluru and Mumbai…The third quarter will be quite big because we’ll also have NCR kicking in. We’ll have some high-end projects in Mumbai, as well as in Goa,” Razack said.
“There is a lot of inventory to come. As of today, the company has very minimum inventory…The positive thing is the market is still pretty strong, the demand is there,” Razack emphasized.
It should be noted that Prestige Estates was expected to mark its foray into the Delhi-NCR market in the ongoing quarter, however, the timeline has moved to the October-December quarter. “All the three projects of NCR should get launched in the October quarter,” Razack said.
Also Read: Prestige Estates Q1 sale bookings fall 23% to ₹3,029 crore due to delay in new launches
The company currently has 955 keys under-construction in the hospitality segment across Bengaluru and Delhi-NCR. It has 1,465 keys under operation presently.
In the retail segment, occupancy rates across malls are hovering around 95-97%, Razack underscored. “Our game plan to build 10 more malls is already in place. We’ve started construction of two,” he elaborated.
The company’s office properties are witnessing occupancy levels of over 90%, barring one-two new properties, Razack said.
Also Read: Prestige Estates’ board approves fund raise of ₹5000 crore via QIP or other modes
Talking about the company’s overall debt, Razack said that around ₹5,000 crore is on the residential side. “It’s only because in the last few quarters we’ve picked up a lot of land… In Delhi, Goa, Hyderabad, Mumbai and Bengaluru,” he added. During the April-June quarter, the company invested ₹1,500 crore to add to its land bank.
Q1 FY25 performance
Prestige Estates on July 31 reported a 13% decline in its consolidated net profit to ₹232.6 crore during the April-June period on higher expenses. The company’s net profit stood at ₹266.9 crore in the year-ago period.
The average realization during the quarter came in at ₹11,934 per square feet for apartments, villas and commercial spaces, up 16% year-on-year. Meanwhile plots saw an average realization of ₹7,285 per square feet, recording a 46% jump on an annual basis.
A total of 1,364 units were sold during the first quarter of FY25. The total sales volume stood at 2.86 million square feet, a decrease from 3.83 million square feet in Q1 FY24, the company said in its regulatory filing.
The company maintained a healthy mix of sales from its top geographies — Bengaluru (43%), Hyderabad (32%) and Mumbai (23%).
During the June quarter, Prestige Estates launched two residential projects in Bengaluru, covering a total developable area of 1.86 million square feet, with a combined gross development value of around ₹1,400 crore.
Prestige Estates is present across 13 cities with a footprint of 190 million square feet. It undertakes residential, office, retail, hospitality and warehousing projects.
