Prestige Estates' PBT declines 74% in Q1 as Covid-19 dents business

With the coronavirus (Covid-19) pandemic causing significant disturbance and slowdown of economic activities, Bengaluru-based real estate company Prestige Estates posted a 74 per cent decline in profit before tax at Rs 49.9 crore for the June quarter as compared to the corresponding quarter in the year ago period.

While the company registered a consolidated net profit of Rs 20 crore for the period, a fall of 83 per cent vis-a-vis a year ago, total income stood at Rs 1,296.3 crore for the realty major.

“Due to the lockdown announced by the government, the company's operations were slowed/ suspended for part of the current quarter and accordingly the accompanying financial results are adversely impacted and not fully comparable with those of the earlier periods,” said the company in a BSE filing.

The company’s net debt stands at Rs 8,405 crore, which it is planning to pare by selling 20 million sq ft of commercial space, including 16 million sq ft of ready and completely leased assets, to global fund manager Blackstone, according to reports.

It has a healthy pipeline of residential and commercial projects. While 15 residential projects of 30 msft are under planning, it has 11 office projects in the pipeline. The company is also looking to develop four malls in Bengaluru, Chennai and Kochi. In the hotels and resorts portfolio, while there are two projects currently under development, one each  in Bengaluru and Delhi, four new projects are being planneed by the company.