Prestige Estates aims to sell properties worth Rs 12,000 crore this fiscal
Realty firm Prestige Estates Projects is targeting to sell properties worth at least Rs 12,000 crore this fiscal, up 16 per cent annually, amid consolidation of housing demand towards credible developers.
In the last financial year 2021-22, the company's sales bookings rose 90 per cent to an all-time high of Rs 10,382.2 crore.
In reply to an analyst query on whether the company was expecting a minimum sales of Rs 12,000 crore in FY23, Prestige Estates CMD Irfan Razack said: ''That is the number that we are looking at minimum. We are actually looking at much more than that.'' ''It all depends on how soon approval comes for various projects but the target is there the goal is there. Hopefully we should exceed that,'' Razack said, according to a transcript of analyst call posted on its website.
Prestige Estates CEO Venkat Narayana said Bengaluru, the company's main market, is likely to contribute around Rs 8,500 crore in its total sales bookings this fiscal and the rest will come from other cities such as Mumbai and Hyderabad.
Already, Prestige Estates' sales booking have jumped 310 per cent on an annual basis to Rs 3,012.1 crore in the first quarter of this fiscal year.
Of this, Rs 750 crore of sales bookings came from its new market Mumbai.
''We sold 3.63 million square foot of area. Average pricing is Rs 8,500 per square foot. We sold 2,560 units in the (June) quarter. It will translate into almost 28 homes a day being sold in Q1,'' Narayana said.
Prestige Estates plans to launch multiple projects, having close to about 15 million square feet of area, in the upcoming quarters this fiscal year.
It also has inventories in the ongoing projects.
''I believe in spite of all the headwinds that we are getting in terms of interest rates, in terms of cost escalations, we still have got our heads together and we have got different ways of mitigating this and I am sure the momentum will not drop,'' Razack said on demand outlook of housing segment.
The RBI has increased the repo rate by 140 basis points in the last few months to control inflation. Real estate developers have also increased prices of apartments to offset rise in input cost and earn better profit margin.
The company's CMD said that its retail and hospitality businesses have revived after the second wave of COVID-19 pandemic.
Prestige Estates plans to launch a project in Noida market also this fiscal.
On financial front, Prestige Estates recently reported over four times jump in its consolidated net profit at Rs 204.9 crore for the quarter ended June.
Its net profit stood at Rs 45.8 crore in the year-ago period.
The company's total income rose 42 per cent to Rs 2,011.8 crore in the April-June quarter from Rs 1,418 crore in the corresponding period of the previous year.
Prestige Group, one of the leading real estate developers in the country, has the legacy of over three decades in real estate development.
It has a diversified business model across various segments -- residential, office, retail, hospitality, and services -- with operations in 12 major locations in India.
The group has completed 271 projects spanning developable area of 151 million square feet and has 48 ongoing projects across segments, with total developable area of 75 million square feet.
Further, 51 projects spanning 84 million square feet are under various planning stages.
The company operates more than 1,300 keys under its hospitality portfolio. The group also holds a land bank of over 375 acres, equal to an additional 27 million square feet of development potential.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)