World · India Bureau
Prestige Estates net profit plunges 44% despite strong sales bookings
The Bengaluru-based real estate developer reported a sharp decline in profitability during the second quarter, with net profit falling to ₹256 crore. The company's revenue slipped 15 per cent even as sales bookings surged 20 per cent to ₹7,225 crore.
LSN India ·
Prestige Estates, one of India's leading real estate developers, posted a 44 per cent year-on-year decline in net profit for the quarter ending September, recording ₹256 crore compared to the previous year's corresponding period.
The Bengaluru-headquartered company's total revenue contracted 15 per cent during the quarter to ₹2,060 crore, reflecting a challenging operating environment for the sector. Despite the profitability headwinds, the developer maintained operational momentum with sales bookings climbing 20 per cent to ₹7,225 crore during the same quarter.
The disconnect between rising sales bookings and lower revenue and profit margins suggests a lag between order intake and revenue recognition, a common occurrence in the real estate sector. Lower margins may also indicate competitive pricing pressures or a shift in project mix toward higher-volume, lower-margin developments.
Prestige Estates continues to operate across residential, commercial, and retail segments in major Indian metros. The company's performance reflects broader trends in India's real estate market, where developers are navigating rising construction costs and evolving consumer demand in the post-pandemic period.