Prestige Estate Is Bullish On Its Mid-Income Housing Segment: MD Irfan Razack
Real estate developer Prestige Estate Projects says its mid-income segment will do well in the near future.
WATCH | Prestige Estate Projects’ MD Irfan Razack on the company’s Q3 results
Real estate developer Prestige Estate Projects Ltd. said its mid-income housing segment will do well in the near future, led mostly by sales in Bengaluru and Hyderabad, according to its Chairman and Managing Director Irfan Razack.
“Going forward, it’s the mid-income segment that will keep doing well because that’s where the demand is coming from and where the need also is,” Razack said during an interaction with BloombergQuint on Monday.
“As far as residential market is concerned, there is demand depending on the type of product, location, city,” Razack said, adding that Bengaluru is the leader among all cities in south India, followed by Hyderabad. “Currently, there’s a fairly good demand for IT offices, but Bangalore and Hyderabad will contribute a lot to office-leasing and number of offices.”
The demand is quite good for A-grade offices, he said, adding that the developer is on track to meet the debt-to-equity ratio guidance. “This should go on for some time at least, but we have to keep our options and eyes open and not get too excited about building.”
The CEO’s comments came couple of days after Prestige Estate Projects reported its December quarter results. The company’s net profit rose 2.8 times year-on-year to Rs 161.8 crore in the third quarter of 2019-20 on the back of revenue that increased 2.5 times to Rs 2,680.0 crore.
Prestige Estate Q3 Results: Key Highlights (YoY)
- Revenue up 2.5 times to Rs 2,680.9 crore
- Net profit up 2.8 times to Rs 161.8 crore
- Ebitda up 2.1 times to Rs 718.8 crore
- Margin at 26.8 percent vs 32.6 percent
- Margin contracted due to IND AS 116 impact.
On Monday, the company’s shares rose 2.90 percent to Rs 392.00 apiece on the NSE while the benchmark Nifty 50 fell 0.16 percent to end the day at 12,119.00 points.