BENGALURU (Reuters) – Indian real estate developer Prestige Estates Projects 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.
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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 67.19 24.10 34.41 -6.72 Buy 16 1.10 0.08
Projects
Sobha 48.16 30.42 26.43 202.85 Buy 12 0.99 0.17
Godrej Properties 81.19 123.59 36.99 31.65 Hold 17 1.11 –
DLF 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
(Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman)
