PRESTIGE ESTATES 2023-24 Annual Report Analysis

Thu, 26 Sep

PRESTIGE ESTATES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

PRESTIGE ESTATES Income Statement Analysis

• Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.9% in FY24 as against 29.0% in FY23.
• Depreciation charges increased by 10.7% and finance costs increased by 51.1% YoY, respectively.
• Other income grew by 238.8% YoY.
• Net profit for the year grew by 52.7% YoY.
• Net profit margins during the year grew from 12.8% in FY23 to 20.7% in FY24.

PRESTIGE ESTATES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	83,150	78,771	-5.3%
Other income	Rs m	4,570	15,482	238.8%
Total Revenues	Rs m	87,720	94,253	7.4%
Gross profit	Rs m	24,110	25,097	4.1%
Depreciation	Rs m	6,471	7,165	10.7%
Interest	Rs m	8,066	12,191	51.1%
Profit before tax	Rs m	14,143	21,223	50.1%
Tax	Rs m	3,475	4,936	42.0%
Profit after tax	Rs m	10,668	16,287	52.7%
Gross profit margin	%	29.0	31.9
Effective tax rate	%	24.6	23.3
Net profit margin	%	12.8	20.7

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PRESTIGE ESTATES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 297 billion as compared to Rs 215 billion in FY23, thereby witnessing an increase of 38.3%.
• Long-term debt stood at Rs 46 billion as compared to Rs 34 billion during FY23, a growth of 33.6%.
• Current assets rose 48% and stood at Rs 353 billion, while fixed assets rose 4% and stood at Rs 125 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 479 billion as against Rs 360 billion during FY23, thereby witnessing a growth of 33%.

PRESTIGE ESTATES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	99,753	112,888	13.2
Current Liabilities	Rs m	214,673	296,982	38.3
Long-term Debt	Rs m	34,100	45,545	33.6
Total Liabilities	Rs m	360,247	478,899	32.9
Current assets	Rs m	239,582	353,411	47.5
Fixed Assets	Rs m	120,665	125,488	4.0
Total Assets	Rs m	360,247	478,899	32.9

PRESTIGE ESTATES Cash Flow Statement Analysis

• PRESTIGE ESTATES's cash flow from operating activities (CFO) during FY24 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -25 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 20 billion, an improvement of 261% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 billion from the Rs -6 billion net cash flows seen during FY23.

PRESTIGE ESTATES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	15,395	12,973	-15.7%
Cash Flow from Investing Activities	Rs m	-27,561	-25,482	-
Cash Flow from Financing Activities	Rs m	5,455	19,692	261.0%
Net Cash Flow	Rs m	-6,121	8,115	-

Current Valuations for PRESTIGE ESTATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.6, an improvement from the EPS of Rs 26.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,817.4, stands at 48.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	207.4	196.5
TTM Earnings per share	Rs	26.6	40.6
Diluted earnings per share	Rs	24.8	37.8
Price to Cash Flow	x	10.1	15.8
TTM P/E ratio	x	16.5	48.5
Price / Book Value ratio	x	1.8	3.3
Market Cap	Rs m	180,708	369,805
Dividends per share (Unadj.)	Rs	1.5	1.8

Ratio Analysis for PRESTIGE ESTATES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.7x during FY24, from 2.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 14.4% during FY24, from 10.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 21.1% during FY24, from 16.6% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 5.9% during FY24, from 5.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	58	57
Interest coverage	x	2.8	2.7
Debt to equity ratio	x	0.3	0.4
Return on assets	%	5.2	5.9
Return on equity	%	10.7	14.4
Return on capital employed	%	16.6	21.1

To see how PRESTIGE ESTATES has performed over the last 5 years, please visit here.

PRESTIGE ESTATES Share Price Performance

Over the last one year, PRESTIGE ESTATES share price has moved up from Rs 604.0 to Rs 1,817.4, registering a gain of Rs 1,213.4 or around 200.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,801.0 (down 0.3%). Over the last one year it has moved up from 4,577.6 to 8,801.0, a gain of 4,223 points (up 92.3%).

Overall, the S&P BSE SENSEX is up 29.3% over the year.

(To know more, check out historical annual results for PRESTIGE ESTATES and quarterly results for PRESTIGE ESTATES)