Prestige Estates Q4 FY25 Profit Falls 82%, Company Eyes Long-Term Growth with ₹14,500 Cr Projects

Prestige Estates Projects Ltd reported an 82% year-on-year decline in consolidated net profit for the fourth quarter of FY25, with earnings sliding to ₹25 crore from ₹140 crore in the same period last year. The drop was mainly due to reduced income and project approval delays that hindered revenue generation.

Financial Performance: A Year of Weak Returns

Q4 FY25 Snapshot

• Net Profit: ₹25 crore (down 82% YoY)
• Total Income: ₹1,589.3 crore, down from ₹2,232.5 crore in Q4 FY24

Full Year FY25 Overview

• Annual Net Profit: ₹467.5 crore, compared to ₹1,374.1 crore in FY24
• Annual Total Income: ₹7,735.5 crore, down from ₹9,425.3 crore YoY

The company attributed the downturn to persistent issues in obtaining project approvals, which limited the launch of new developments and subsequently reduced revenue streams.

Big Bets on Future Growth

Commercial Push in Mumbai

Despite weaker financials, Prestige Estates is accelerating its growth plans through strategic joint ventures. The company has teamed up with Valor Group for a major commercial project in Mumbai's Andheri West. The highlights of this joint venture include:

• Location: Andheri West, Mumbai
• Land Area: 21,978.22 sq. m.
• Leasable Area: 1.5 million sq. ft.
• Gross Development Value (GDV): ₹4,500 crore
• Prestige’s Investment: ₹504 crore into the SPV

Entry into Delhi-NCR Market

In a major diversification move, the developer has announced its foray into the Delhi-NCR residential sector. Prestige will invest ₹10,000 crore over six years to build a 62.5-acre township in Ghaziabad named 'The Prestige City, Indirapuram'. The first phase alone, comprising 3,421 units across 19 towers, carries a GDV of over ₹9,000 crore.

Sales Trends: Mixed Signals

Though the net profit took a hit, the company recorded a 48% jump in Q4 sales bookings, totaling nearly ₹7,000 crore. However, full-year sales bookings for FY25 were lower by 19%, falling to just over ₹17,000 crore. Management attributed this dip to continued delays in project launches.

Outlook

Prestige Estates appears to be betting on long-term resilience despite near-term profitability challenges. With a strong focus on high-value projects in Mumbai and NCR, the company is seeking to offset short-term financial pressure through strategic market expansion and commercial developments.

Disclaimer: This news article is for informational purposes only. Readers are advised to consult financial professionals before making any investment decisions.