Prestige Estates shares in the spotlight after a 77.4% y/y decline in net profit in Q2

Prestigious real estate projects the stock will be in the spotlight after the company saw a sharp decline of 77.4% year-on-year (y/y) net profit to Rs 192.2 crore for the second quarter, mainly due to deferral of liabilities of Rs 106 crore tax impact related to recent changes to the tax code, including the elimination of indexation benefits on capital gains.

Business incomehowever, it grew by 3% to Rs 2,304.4 crore from Rs 2,236.4 crore in the same quarter last year, highlighting continued revenue growth despite broader headwinds.

Operating profit, or EBITDA, increased by 6.5% to Rs 631.3 crore compared to Rs 592.5 crore a year ago, with EBITDA margin showing a slight improvement at 27.4% compared to 26.5% in the year last.

On Tuesday, shares of Prestige Estates Projects closed at Rs 1,606.5, down 0.2.8% on the BSE, while the benchmark Sensex rose 0.45%. The company’s shares are up 35% in 2024 to date and 260% in the last two years, with the company currently having market capitalization worth Rs 69,196 crore.

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