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Prestige Estates Projects Ltd reported an 82% YoY drop in consolidated net profit to INR 25 crore in Q4 FY25, down from INR 140 crore. Total income also fell to INR 1,589.3 crore from INR 2,232.5 crore. For FY25, net profit declined to INR 467.5 crore (from INR 1,374.1 crore), with total income dropping to INR 7,735.5 crore. Amidst this downturn, the Bengaluru-based developer announced a strategic joint venture with Valor Group to co-develop a 1.5 million sq. ft. premium commercial office project in Andheri West, Mumbai, with an estimated Gross Development Value (GDV) of INR 4,500 crore. Both companies will hold equal 50% stakes, with Prestige investing INR 504 crore via an SPV. The project aims to strengthen Prestige's presence in Mumbai's thriving commercial real estate market and drive future growth.
The consolidated net profit of Prestige Estates Projects Ltd, a well-known real estate developer with headquarters in Bengaluru, fell 82% year over year to INR 25 crore in the most recent quarter. During the same quarter last year, the firm had posted a net profit of INR 140 crore. Advertisement
The company's total income for the final quarter of the previous financial year fell to INR 1,589.3 crore, compared to INR 2,232.5 crore recorded during the corresponding period the year before, as indicated in a regulatory filing shared late last week.
Over the entire 2024-25 fiscal, Prestige Estates saw its net profit plummet to INR 467.5 crore, a sharp fall from INR 1,374.1 crore in the prior financial year. The total income also witnessed a significant decline, dropping to INR 7,735.5 crore from INR 9,425.3 crore.
Amidst this financial downturn, the company has announced a strategic joint venture with Valor Group to co-develop a premium commercial office complex in Mumbai. Prestige Estates stated that it has executed a framework agreement with Valor Estate Ltd and its wholly-owned subsidiaries to undertake the development of a 1.5 million sq. ft. office project on land measuring around 21,978.22 square metres in Andheri West.
The development is expected to have a Gross Development Value (GDV) of approximately INR 4,500 crore. Both firms will hold an equal 50% economic stake in the venture. The company informed that this will be executed through a special purpose vehicle (SPV), into which Prestige Estates will inject INR 504 crore.
Company officials indicated that the venture would be developed jointly with Valor Group on a 50:50 basis, encompassing around 1.5 million sq. ft. of leasable commercial space, further strengthening Prestige's footprint in Mumbai's commercial real estate market.
The INR 4,500 crore joint venture with Valor Group not only marks a significant investment but also reflects the firm's confidence in India's commercial real estate growth, particularly in Mumbai's business hubs. With equal participation in economic interest and capital infusion into the SPV, the partnership could help Prestige realign its growth trajectory in the coming years.
Source - PTI
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