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Despite the seasonality factor, real estate developer Prestige Estates Projects Ltd has reported robust pre-sales in value terms at Rs3,511 crore, up 66% year-on-year (y-o-y).
In volume terms, bookings increased to 4.55 million square feet (msf). Collections rose 68% y-o-y to Rs2,603 crore in the September quarter, the company said in its operational update for the quarter.
Reacting to this, shares of the company rose around 3% on the NSE in Wednesday’s opening trade.
Analysts at Motilal Oswal Financial Services note that the company’s blended realizations were up 30% y-o-y to Rs7,716/square feet, but dropped 7% sequentially likely due to proportionately lower contribution from Mumbai projects.
During the quarter, the company launched five projects spanning 7.39msf, viz The Prestige City Meridian Park- Phase-III and Prestige Park Drive- Phase-III in Bengaluru, Prestige Orchards in Hyderabad, Prestige Liberty Towers and The Prestige City Mulund- Bellanza Phase-II in Mumbai. Three projects totalling 2.58msf – Prestige Park Drive – Phase I&II, Prestige Minsk Square and Forum Falcon City in Bengaluru were completed during the quarter, the company said in a press release. During H1 FY23, new launches totalled 17.06msf and completions 3.35msf, respectively.
Given its robust launch pipeline across cities, the company may well be on track to achieve its FY23 sales target. In H1FY23, it’s sales value at Rs6,520 crore, rose 129% y-o-y. Analysts at Antique Stock Broking Ltd expect the company to surpass it’s FY23 sales guidance of Rs12,000 crore. Note that in FY22, the company did sales of worth Rs10,400 crore.
Meanwhile, in this calendar year so far, shares of the company have declined by 6.5%. In comparison, sector index Nifty Realty is down 13%. Real estate stocks have been on a weak footing recently given the fear that rising home loan rates would eventually impact residential sales. In that context, commentary by real estate companies on demand outlook would be crucial. Any downward revision in sales guidance would be a sentiment dampener.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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