Prestige Estates Projects Limited unveiled its plans to achieve INR 25,000 Cr of sales in the next 3 years, almost doubling the current numbers. The Group gave geography-wise contributions of ~20,500 Cr+ sales from cities with existing presence such as Bengaluru, Mumbai, Hyderabad, Chennai, and other cities (Kochi, Calicut, Goa, Mangaluru and Ooty). It also gave expected sales of ~INR 4500 crs from expansion into newer geographies such as NCR and Pune, where the company plans to expand in the next 6 months.
Prestige, recently forayed into Mumbai and has received an overwhelming response from its launched projects The Prestige City - Mulund, Prestige Jasdan Classic - Mahalaxmi and Prestige Daffodils - Pali Hills. The Group's current portfolio in Mumbai comprises 6 Residential and 2 Commercial projects which are expected to contribute a total GDV ~INR 75,000 Crs.
Prestige Group maintains an impeccable delivery record and has delivered 165 mn sft of real estate development since its inception in 1986. Despite industry transitions and challenges in the last 5 years such as Demonetization, RERA, GST, NBFC liquidity issues and Covid-19, Prestige group successfully delivered 80+ mn sqft in the last 6 years. The company is currently developing another 168 mn sft, of which 75 mn sft is under construction and another 93 mn sft is under various stages of design, planning and approval.
Prestige's strong growth in the last 5 years period in terms of sales has grown from ~INR 4,557 Cr in FY19 to ~INR 12,000 Cr in FY23(Est) at 27% CAGR and Collections grew from ~INR 4,409 Cr in FY19 to ~INR 9,750 Cr in FY23 (Est) at 22% CAGR.
Prestige is eyeing achieving an annual Sales target of ~INR 25,000 Cr by FY26 across Pan- India. The company stresses that it is the underlying values of credibility, transparency, inclusiveness, customer centricity, and trust that have brought Prestige to the mantle it is currently at and underlines that these values will continue guiding the entire team as they continue to build on Prestige’s Growth Story.
Prestige has visibility of ~INR 22,000 Crs free cash flows from the current pipeline of residential projects. Additionally, the Land Bank of 612 acres has a potential of ~INR 10,000 Cr. Prestige is on its way to achieving an Annuity of ~INR 3,000 Cr by FY28 with its current mix of commercial and retail projects. The company has a well-thought-out Capex Funding Strategy that would utilize free cash flows from the residential segment to keep debt in check. Prestige’s current projects in Mumbai have a GDV potential of ~INR 75,000 Cr.
Four new projects are further being evaluated in the MMR Region. Prestige is eyeing to expand into new geographies such as NCR and Pune and looking at annual sales contributions of ~INR 3000 Cr and ~INR 1500 Cr respectively, in the next 3 years. The Prestige City format, which has received such an overwhelming response in Bengaluru and Mumbai, shall be expanded and replicated in other geographies.
