Prestige Estate Projects Ltd's Q4FY18 consolidated net profit rises 21.6% yoy to Rs107.10cr : In-line with Estimates

The company’s consolidated revenue stood at Rs1,848.60cr, up 28.04% yoy and 45.3% qoq.

May 28, 2018 06:05 IST India Infoline Research Team

Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 1,848.60 28.0
EBITDA 334.20 23.2
EBITDA Margin (%) 18.1 [72]
Net Profit (adjusted) 107.10 21.6
***EBITDA margin change is bps

Prestige Estate Projects Ltd’s revenue for Q4FY18 increased by 28% yoy to Rs1,848.6cr as against Rs1,443.80cr in Q4FY17. The company’s EBITDA margin has contracted by 72bps yoy to 18.1% as against 18.8%. The company’s EBITDA grew by 23% yoy to Rs334.2cr as against Rs271.60cr. The company’s Adj. PAT grew by 2.3% yoy to Rs113.2cr as against Rs110.7cr. The company’s adj. PAT after minority interest and profit from associates increased by 21.6% to Rs107.1cr as against R88.1cr.
  • During the quarter the company completed the issue of 5,000 non convertible debentures of Rs10,00,000 each. The debentures carry a coupon rate of 10% per annum (payable quarterly) and are repayable in four equal six monthly instalments commencing from December 2020.
  • The company had entered into a registered Joint Development Agreement (JDA) with a certain land owner (the "Land Owner Company") to develop a residential project ("the Project"). Under the said JDA, Prestige acquired development rights over a certain parcel of land of the land owner company and in exchange was required to provide the land owner company identified developed units with a certain specified built-up area.
  • Prestige had also incurred Transferrable Development Rights (TDR's) of Rs88.1cr which are recoverable from the land owner company along with an interest of 12% per annum, from the sale of units from the residential project belonging to the land owner company. 
  • As at March 31, 2018, gross receivables due from the land owner company towards TDRs aggregate to Rs92.3cr. The land owner company had been ordered to wind up by the Hon'ble High Court of Judicature during the year ended March 31, 2017. The land owner company has challenged the court order, the legal proceedings of which is pending with the Judicature. Prestige expects to recover the above gross dues towards TDRs and has accordingly classified them as good and recoverable in the financial statements.

Technical View:

Prestige Estates Projects Ltd ended at Rs. 272.25, up by 1.85 points or 0.68% from its previous closing of Rs. 270.40 on the BSE.
The scrip opened at Rs. 269.50 and touched a high and low of Rs. 275.50 and Rs. 269.50 respectively. A total of 45,987 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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