Prestige Estates Projects Limited, a leading real estate developer, has reported a 53.32% decline in its net consolidated profit for the quarter ended March 31, 2024. The company's profit after tax stood at INR 235.90 crore, down from INR 505.40 crore in the corresponding quarter of the previous fiscal year. Despite the drop in profitability, the company's board has recommended a final dividend of 18% and approved the issuance of non-convertible debentures worth up to INR 2,000 crore. Notably, the company has undertaken several strategic investments, including acquiring stakes in Dashanya Tech Parkz, Prestige Vaishnaoi Realty Ventures, and Techzone Technologies, among others, positioning it for future growth.
Prestige Estates Projects Limited has reported a significant decline of 53.32% in its net consolidated profit during the quarter ended March 31, 2024. The company's profit after tax stood at INR 235.90 crore in the fourth quarter of the fiscal year 2023-24, compared to INR 505.40 crore recorded in the corresponding quarter of the previous fiscal year, as per the company's filing with the Bombay Stock Exchange (BSE).
The company's net consolidated total income also decreased by 24.01%, from INR 2,938 crore in the same quarter last year to INR 2,232.50 crore in the fourth quarter of fiscal year 2023-24.
The board of directors of Prestige Estates Projects Limited has recommended the payment of a final dividend at the rate of 18% (INR. 1.8 per share) on the equity shares of the company for the year ended March 31, 2024.
Furthermore, the board has approved the issuance of non-convertible debentures (NCDs) for an aggregate amount of up to INR 2,000 crore on a private placement basis, subject to the approval of the shareholders.
During the year ended March 31, 2024, the company has undertaken the following strategic actions:
a) Acquired a 51% stake in Dashanya Tech Parkz through its wholly-owned subsidiary, resulting in a 50% fully diluted ownership in the entity.
b) Invested in Prestige Vaishnaoi Realty Ventures (formerly known as Sarveshvari Constructions) and was admitted as a partner with a 50% ownership and economic rights.
c) Acquired a 48.07% stake in Techzone Technologies through its wholly-owned subsidiary.
d) Acquired the remaining stake in Prestige (BKC) Realtors and Turf Estate Joint Venture LLP through its wholly-owned subsidiary, resulting in 100% ownership in these entities and 99.99% interest in Evergreen Industrial Estate (a subsidiary of Turf Estate Joint Venture LLP), leading to the company gaining control.
e) Acquired an additional 50% partnership interest in Prestige Realty Ventures, resulting in the company holding a 99.90% interest in these entities and gaining control.
While Prestige Estates Projects Limited has faced a significant decline in its quarterly performance, the company's strategic investments and planned capital-raising initiatives demonstrate its commitment to navigating the challenges and positioning itself for long-term success. The board's recommendation of a healthy dividend payout and the approval of the NCD issuance further underscores the company's focus on delivering value to its shareholders. As Prestige Estates Projects Limited continues to explore new growth opportunities, investors and industry observers will be closely monitoring its ability to capitalize on the promising real estate landscape.
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