Prestige Estates Q1 Results Post Strategy:क्यों Profit में दिखा दवाब, FY25 के लिए क्या है Planning?

CNBC Awaaz.

31 Jul 202407:15

Summary

TLDRThe video script discusses the financial results of a company, highlighting a 51% growth in EBITDA and a 12% increase in margins. Despite a slight dip in profit, the company's CMD, Irfan Rajak, expresses optimism about the future, attributing the current challenges to delays in project approvals and the RERA number. The conversation also touches on the company's strategy to maintain affordability in their projects and the importance of customer accessibility. The script also mentions upcoming launches in various cities and the company's pipeline, indicating a positive outlook for the second quarter.

Takeaways

📈 The company has reported a 51% growth in EBITDA, indicating a significant increase in earnings before interest, taxes, depreciation, and amortization.
📊 The profit margin has increased from 31% to 43%, showing an improvement in profitability.
📉 Despite the overall positive financial performance, there has been a slight dip in profit, which the management is addressing.
🏢 The company has a strong pipeline of projects ready for launch, suggesting a promising future for sales and revenue.
🔄 There has been a delay in project launches due to the approval process and RERA number requirements, impacting the current quarter's performance.
🏘️ The company has successfully launched projects in Bengaluru and is looking forward to launching in Delhi in the next quarter.
💡 The management emphasizes the importance of affordability and does not aim to significantly increase prices, prioritizing customer accessibility.
📈 The company is experiencing price appreciation in Hyderabad, indicating a positive market trend for their projects.
🌐 The transcript mentions a potential expansion into Gurgaon, although the company is cautious about entering the market without proper assessment.
🏙️ In Mumbai, the company has launched a premium project in the Town Side area, reflecting a strategy to cater to the high-end market segment.
📉 The Mumbai market is showing signs of price stabilization, with sales volumes indicating that the market may be reaching a saturation point.

Q & A

What was the growth in the company's net profit for the first quarter?
-The net profit showed a growth of 51% in the first quarter.
How did the company's margin change from the previous quarter?
-The margin increased from 31% to 43%.
Why was there a slight dip in the company's profit?
-The slight dip in profit is related to the accounting system and the completed method of sales, which only allows for booking when the product is completely sold and delivered.
What is the current status of the company's sales volume?
-There is a weakness in the sales volume, as indicated by a 22% decrease in pre-sales.
What is the relationship between the RERA number and project launches?
-The RERA number is required after the approval process for a project to be launched, and any delay in obtaining it can affect the project launch timeline.
How many projects did the company manage to launch in the current quarter?
-Only two projects were launched in the current quarter, both in Bengaluru and both were sold out.
What is the company's pipeline for the second quarter?
-The company has a good pipeline for the second quarter, with many projects ready for launch, including in new markets.
Why is there a need to have stock before selling in the market?
-Having stock is necessary to meet the demand and to ensure that the product is affordable for customers, without increasing the price excessively.
What is the average price increase in Bengaluru?
-The price in Bengaluru has slightly increased, but the exact increase is not specified in the transcript.
What is the company's approach to pricing in Delhi?
-The company is trying to maintain an affordable price in Delhi, with two major projects in Sector 150 Noida and Indirapuram, and is avoiding excessive price increases.
What is the status of the company's projects in Mumbai?
-The company has launched Ocean Tower in Marine Lines, Mumbai, with 160 flats, but cannot launch all at once due to the slow approval process in Mumbai.
What was the ticket size for the Marine Lines project in Mumbai?
-The ticket size for the Marine Lines project was around 25 crores.
What is the company's upcoming plan for launches in different cities?
-The company is preparing for launches in various cities, including Delhi, for the next three to four months, pending approvals.

Outlines

00:00

📈 Financial Results and Business Performance

The first paragraph discusses the financial results of a company, highlighting a growth in revenue and profit margins. Despite a slight decrease in profit and a noted weakness in pre-sales, the company's CMD, Irfan Rajak, is optimistic about the business performance. The conversation touches on the impact of delayed project launches due to regulatory approvals and the RERA number on sales, as well as the company's strategy to maintain affordability for customers. The paragraph also mentions specific projects in different cities, emphasizing the successful launches and sales in Bengaluru and the anticipation of upcoming launches in the second quarter.

05:01

🏙️ Market Analysis and Project Updates in Mumbai

The second paragraph provides an update on the real estate market in Mumbai, where premium projects have been sold at high prices but have recently stabilized. The speaker discusses the successful launch of 'Ocean Tower Marine Lines' with 160 flats, which sold well despite the high price point. The paragraph also covers other projects such as 'Prestige City' and the upcoming 'Forest Hill' in the Marine Lines area. The speaker, Irfan, confirms the ticket size for Marine Lines properties being around 25 crores and expresses gratitude for the discussion, hinting at future launches in various cities, including Delhi, in the coming months.

Mindmap

Keywords

💡Results

Results refer to the outcomes or findings of a particular activity, in this case, the financial performance of a company. In the video's context, the term is used to discuss the company's first-quarter performance, highlighting an increase in profits and growth margins. For example, the script mentions 'नतीजे थे आमदनी 11 पर बढ़ के मिली' which translates to 'the results showed an increase of 11 in profit'.

💡Growth

Growth in this context is an economic term that signifies an increase in a company's revenue, profits, or other measurable metrics over time. The script indicates a '51 की ग्रोथ' or '51% growth', which is a key indicator of the company's expansion and success.

💡Margin

Margin here refers to the profit margin, which is the percentage of revenue that turns into profit after all costs have been deducted. The script states 'मार्जिन 31 पर से बढ़ के, 43 पर गया है', meaning 'the margin has increased from 31 to 43', indicating an improvement in the company's profitability.

💡Profit

Profit is the excess of revenues over expenses, indicating the financial success of a business. The script mentions 'प्रॉफिट थोड़ा सा, सबडड हुआ है', which translates to 'the profit has slightly decreased', suggesting a minor dip in the company's financial performance.

💡Pre-sales

Pre-sales in a business context often refer to the marketing activities or sales made before a product is officially launched or released. The script mentions 'प्री सेल्स में 22 पर की, कमजोरी', indicating a weakness or decrease in pre-sales activities by 22%.

💡Projects

Projects in this context are likely to refer to real estate developments or construction ventures that the company is undertaking. The script discusses 'हमारे पास बहुत सारे प्रोजेक्ट है तैयार हुए लंच के लिए', meaning 'we have many projects ready for launch', which is central to the company's business strategy.

💡Approval Process

The approval process is the series of steps required to get official permission or authorization for a project or activity. The script mentions 'इसमें तो अप्रूवल प्रोसेस चाहिए और, अप्रूवल प्रोसेस के बाद रेरा नंबर चाहिए', indicating the necessity of approval for projects to proceed legally.

💡Pipeline

In business, a pipeline refers to the sequence of potential deals or projects that are in various stages of the sales or development process. The script states 'बहुत सारे पाइपलाइन में लच है', which translates to 'there are many launches in the pipeline', suggesting a robust queue of upcoming projects.

💡Demand

Demand refers to the quantity of a product or service that consumers are willing and able to buy at a certain price. The script repeatedly mentions 'डिमांड है', emphasizing the high demand for the company's products.

💡Stock

In a business context, stock can refer to the inventory of goods that a company has on hand and is ready to sell. The script says 'स्टॉक होना चाहिए बेचने के लिए', which translates to 'should have stock to sell', indicating the importance of maintaining inventory for meeting customer demand.

💡Launch

A launch in this context refers to the introduction of a new product, service, or project to the market. The script discusses 'लच का' and 'लंच की तैयारी चल है', indicating preparations for new project launches in various cities, including Delhi.

Highlights

The company's first-quarter results have been announced, showing an 11% increase in profits.

There has been a 51% growth in EBITDA margins.

Profit margin has increased from 31% to 43%.

Profit has slightly decreased.

A 22% weakness in pre-sales is observed.

The company has many projects ready for launch, awaiting approval and RERA numbers.

There was a delay in approvals due to an election code of conduct, affecting the quarter's launches.

Two projects were launched in Bengaluru and both were sold out.

The company has a good pipeline for the second quarter.

High demand is mentioned, but the stock should be available for sale.

There might be a delay in project launches due to the approval process.

The average realization of 12,000 is discussed, with a focus on price tactics.

The price in Bengaluru has slightly increased.

The company does not want to make the product unaffordable by excessively increasing the price.

Projects in Delhi, including NCR, are mentioned with ongoing processes.

The company is not trying in Gurugram due to high expenses.

The Mumbai market is discussed, with high premium project sales.

The launch of a project in Marine Lines, Mumbai, with 160 flats is mentioned.

The ticket size for Marine Lines project is around 25 crores.

The company is preparing for launches in various cities, including Delhi, before the festive season.