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Prestige Estates Projects Ltd has established a sales target of INR 27,000 crore for the ongoing fiscal year, marking a 59% rise from the previous year, despite missing its earlier projection due to regulatory hurdles. While last year's pre-sales dipped 19% to INR 17,023 crore, the firm remains optimistic owing to a healthy pipeline and strong initial sales in the first quarter. With INR 42,000 crore worth of launches planned across key cities and a notable rise in average realisation rates, the company aims to bounce back sharply and capitalise on sustained housing demand.
Prestige Estates Projects Ltd has outlined a pre-sales target of INR 27,000 crore for the ongoing financial year, representing a significant 59% increase from the INR 17,023 crore achieved in the past fiscal year. This renewed target reflects the company's optimistic stance on the residential market despite facing a decline in bookings due to delayed regulatory clearances for new launches. Advertisement
The Bengaluru-headquartered developer had initially forecasted INR 24,000 crore in pre-sales last year but fell well short of the guidance, recording a 19% annual decline. The company attributed this underperformance to regulatory bottlenecks that postponed project launches.
In a recent analyst call, Prestige Estates' Chairman Irfan Razack stated that the company had taken a conservative approach for the current fiscal, setting a goal of INR 27,000 crore. He remarked that the intention was to under-promise and over-deliver, revealing that the first quarter alone was anticipated to contribute INR 12,000-13,000 crore, putting them in a strong position to surpass INR 25,000 crore.
The developer currently holds inventory worth INR 20,000 crore from ongoing projects and is gearing up to launch new developments estimated at INR 42,000 crore during the fiscal. This extensive pipeline includes 25 residential projects covering 44.8 million sq ft of developable area across major cities such as Bengaluru, Chennai, Hyderabad, Mumbai, Delhi-NCR, and Goa.
Executive Director Zyad Noaman highlighted that while pre-sales were affected by delayed launches, Prestige Estates was able to command stronger pricing. Average realisations for residential apartments, villas, and commercial offerings climbed 36% year-on-year to INR 14,113 per square foot, while plotted developments witnessed a 50% increase over the previous year.
Noaman also noted that the new financial year had kicked off on a strong note with the launch of The Prestige City in Indirapuram, NCR. This landmark township, carrying a gross development value (GDV) of INR 9,000 crore, had already recorded over INR 6,500 crore in sales within the initial phase.
According to its investor presentation, Prestige Estates is preparing to roll out a wide range of residential projects throughout this fiscal year, aimed at capturing the momentum in housing demand that continues to drive the market upward. In the previous fiscal year, the company launched 26.28 million sq ft of projects with a combined GDV of INR 26,222.8 crore, though this fell short of internal expectations due to the delays.
Financially, the company posted a sharp drop in net profit to INR 467.5 crore from INR 1,374.1 crore in the prior year. Its total income also saw a decline to INR 7,735.5 crore, compared to INR 9,425.3 crore in the preceding fiscal. Prestige Group, which has developed over 300 projects to date, continues to maintain a robust presence across India, with numerous developments underway in key markets.
The strong launch of The Prestige City Indirapuram and significant inventory ready for market signal the company's resilience and intent to maintain its leadership in India's real estate sector. With rising realisations and extensive geographic reach, Prestige is gearing up to leverage the ongoing surge in housing demand to recover its growth trajectory.
Source - PTI
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