Prestige Estates Q4FY24 concall summary
- Completed 300 projects, 190 mn sft
- Ongoing 53 projects, 93 mn sft
- Upcoming 12 projects, 91 mn sft
- D/E 0.66
- Avg. Borrowing Cost 10.69%
#Q4FY24
- Sales,
21% to 4,106 Cr - Collections, 26%, 3,474 Cr
- Area sold, 34%, 4.11 Mn sft
- Launches, 78%, 9.35 Mn Sft
- Completions, 938%, 13.33 Mn Sft
- 19 units/day sold, total 1,666. Avg realization psf: 11,459
#FY24
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Highest ever Sales,
63%, 21,040 Cr -
Highest ever Collections,
22%, 11,954 Cr -
Area sold,
34%, 20.25 Mn sft -
Launches,
52%, 40.19 Mn Sft -
Completions,
63%, 25.55 Mn Sft -
28 units/day sold, total 10,068. Avg realization psf: 10,410
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Delivered 25 Mn sft of area in FY24
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75% sales (15,716 Cr) came from newly launched projects
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3,797 Cr sales came from Prestige City Hyderabad
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Co gave guidance of 19,000 sales in FY24 and achieved 21,000
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Co guided to grow sales by 25% to 30% in FY25. That is 26,000 crores of sales. Co said they will easily achieve this target and might surprise upwards.
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Co closed the deal with Abu Dhabi Investment Authority (ADIA). As part of the deal, ADIA invests 2,000 crores in 4 projects, 2 in Bangalore, 1 in Delhi, and 1 in Mumbai.
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Co tied 62 acres of land in NCR, Indirapuram. The sales potential is 10 mn sft, 10,000 crores. Co is planning to launch this in Aug or Sep subjected to approvals.
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Prestige City Hyderabad, just in four months of launch has clocked almost INR4,000 crores worth of sales
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In FY25, Co has 60,000 crores worth of launches in pipeline with land and designs sorted out. Projects are in approval stage at different levels. Co has done 21,040 Cr sales in FY24.
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Co launched 40 mn sft in FY25, out of these 31 mn sft was in residential. Remaining came from office and retail hospitality.
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There are 60,000 crores worth of pipelines and 12,000 crores worth of inventory. Total 72,000 crores. If 50% of this is sold, it will generate 36,000 crores of sales in FY25. Co should be able to easily achieve guided 26,000 crores of sales.
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Co has pipelines in Bangalore, Hyderabad, Mumbai, Pune, Goa, Chennai and NCR. NCR, there are three large projects which are under approval, one in sector 150, one in Indirapuram and the other is in KG Marg
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Co mentioned that there is very good demand for commercial real estate. 8 mn sft is under development and targeting to complete by FY26/27.
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Co mentioned that FY25 cash flows will be robust. Guided to reduce the D/E in FY25 despite of multiple new launches. Current D/E is 0.66
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Co mentioned that the hospitality demerger work is in progress and planning to finish it in FY25. Co is planning to do the hospitality division IPO after the demerger.
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Co mentioned that the Q1 will be bit soft due to elections, new launches are not happening as approvals are pending. Q2 and Q3 will be bumper quarters.
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Co said they are getting multiple project offerings from landlords but they are picking the right ones.
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EBITDA margin should remain at 20%-23%
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This year, Prestige have spent INR2,300 capex, which includes INR1,600 on commercial, retail around INR250 crores, and hospitality, INR450 crores. Co is planning to spend 2,500-3,000 crores per annum in FY25 and FY26
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Co is guided to achieve 5,000 crores of top-line office rental, and for retail, 600 crores of top-line rental by FY28
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Gross margins 30% to 35%, EBITDA margins will be around 23, the PAT margins will be in the range of 14%, 15%.
Track
Pre-sales growth
Collections
Cashflows
D/E
Launches Pipelines
Inventory
Execution and track record
Increase in Rental portfolio
Valuations
Mcap/Pre-sales
Mcap/OCF
Mcap/Embedded EBITDA
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