Prestige Estates gears up for big launches in H2, but timely approvals are key
Subscribe to enjoy similar stories. Prestige Estates Projects Ltd’s first half of FY25 was nothing to write home about. Pre-sales or bookings plunged 36% year-on-year to ₹7,052 crore as delayed regulatory approvals continued to weigh on new launches.
Prestige unveiled only three new residential projects in the September quarter (Q2FY25). Nonetheless, the second half of FY25 (H2FY25) appears promising. Prestige plans to launch projects with a gross development value or revenue potential of around ₹52,100 crore and anticipates around ₹16,000 crore of pre-sales/bookings in H2FY25.
For FY25, the company has guided for around ₹24,000 crore in pre-sales. Management hopes to exceed this target if the launch pipeline pans out as expected. Given limited unsold inventory, the pre-sales trajectory largely depends on new launches, so timely approvals are crucial.
Big-ticket projects lined-up for H2FY25 are The Prestige City Indirapuram and Prestige Bougainvillea in National Capital Region (NCR), Prestige Southern Star and Prestige Sunset Park in Bengaluru, Prestige Nautilus in Mumbai, Prestige Pallava Gardens in Chennai, and Prestige Spring Heights and Prestige Rock Cliff in Hyderabad. Bengaluru continued to dominate sales with a 48% share in overall pre-sales in H1FY25, thus exposing Prestige to geographical concentration risk. Also read: L&T can still meet its FY25 order inflow target It is expanding into margin-accretive markets such as Mumbai and NCR, but could face competition from established developers.
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