Prestige Estate posts robust Q4 earnings; Helps debt reduction

Prestige Estate posts robust Q4 earnings; Helps debt reduction

Shares of Bengaluru-based Prestige Estate Projects surged more than 8% on the NSE in early trade on Wednesday as the Street cheered the company’s March quarter earnings performance.
Its pre-sales volume at 2.76 million square feet improved 35% year-on-year (y-o-y). In value terms, sales increased by 53% y-o-y to Rs 1,854 crore. For FY21, the company saw sales in value and volumes terms rise by 20% y-o-y. Collections also remained robust during the quarter.

Strong cash flows and asset monetisation deal with the Blackstone Group helped net debt reduction by Rs 7,150 crore to Rs 1,314 crore with debt/equity metric improving to 0.19 times. The company’s net profit for the quarter saw a multi-fold jump due to this transaction. Investors would reckon that the company signed a definitive agreements in March with global investment firm Blackstone to sell select assets in its completed office, retail and hotel properties portfolios in the first phase of this deal worth Rs 9,160 crore.
In March this year, Prestige Estates Projects signed definitive agreements with global investment firm Blackstone to sell 12 assets/undertakings comprising completed office, retail and hotel properties in the first phase of Rs 9,160-crore deal.

On the other hand, income from the rental income saw a significant drop in the quarter due to sale of rental assets to Blackstone group.
Meanwhile, the company launched two new projects in Bengaluru aggregating 4.74 million square feet during the quarter. In FY21, the company launched seven projects of around 11.85 million square feet.

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