Prestige Estates Projects Limited , a leading Indian real estate developer, has reported exceptional financial results for the second quarter, showcasing robust growth and strong market performance across its key operational areas.

Strong Sales Growth

Prestige Estate recorded quarterly sales of ₹60,173.00 million, representing a remarkable 50% increase compared to the same period last year. This impressive growth was driven by sustained demand across various markets and segments.

Key Performance Highlights

Geographical Sales Distribution

The company's sales performance demonstrated a balanced and geographically diversified portfolio:

Improved Realizations

Prestige Estate saw significant improvements in average realizations:

• Apartments: ₹14,906.00 per square foot (8% YoY increase)
• Plots: ₹9,510.00 per square foot (43% YoY increase)

New Launches

The company launched 3.87 million square feet of developable area, with a total gross development value (GDV) of ₹39,669.00 million. Key launches included:

1. Mayflower at The Prestige City (NCR)
2. Prestige Autumn Leaves (Bengaluru)
3. Prestige Greenbrook (Bengaluru)
4. Prestige Crystal Lawns (Bengaluru)

Office and Retail Segment Performance

• Office Segment: Achieved gross leasing of 2.3 million square feet with a healthy portfolio occupancy of 93.42%.
• Retail Segment: Reported a gross turnover of ₹6,236.00 million, up 9% year-on-year, with an impressive 99% portfolio occupancy.

Management Commentary

Irfan Razack, Chairman and Managing Director of Prestige Group, expressed satisfaction with the company's performance, highlighting the success of flagship projects like Prestige Nautilus in Mumbai and The Prestige City Indirapuram in NCR. He emphasized the company's focus on timely delivery, prudent financial management, and a strong project pipeline to sustain growth.

Prestige Estate's stellar quarterly performance underscores its strong market position and effective strategy in navigating the dynamic real estate landscape. The company's geographically diversified portfolio and successful project launches have contributed significantly to its growth, setting a positive tone for the remainder of the fiscal year.

Prestige Estates Projects Limited , a prominent real estate developer, has disclosed that its subsidiary, Prestige Mulund Realty Private Limited, has received a show cause notice from the Directorate General of Goods & Services Tax Intelligence (DGGI), Mumbai. The notice, alleging non-payment or short-payment of Goods and Services Tax (GST), demands a substantial sum of ₹153.60 crore along with an equivalent penalty and applicable interest under the Central Goods and Services Tax Act, 2017.

Key Details of the GST Notice

Company's Stance and Market Response

Prestige Estates Projects has stated that the demand is not maintainable based on their assessment. The company is currently evaluating the matter and plans to take appropriate action. Importantly, Prestige Estates does not anticipate any material impact on its financials, operations, or other business activities as a result of this notice.

The market's initial reaction to this news appears to be muted. Prestige Estates' shares closed at ₹1,547.00 on the Bombay Stock Exchange (BSE), showing a slight increase of 0.94%.

Implications and Next Steps

While the GST notice represents a significant amount, it's crucial to note that it is currently at the show cause stage. This means that Prestige Mulund Realty Private Limited has the opportunity to present its case and clarify its position before any final decision is made.

The parent company's confident stance regarding the non-maintainability of the demand suggests that they may have strong grounds to contest the allegations. However, the outcome will depend on the subsidiary's response and the subsequent evaluation by the tax authorities.

For investors and stakeholders, it will be important to monitor how this situation develops, particularly if there are any updates regarding the company's response or any decisions from the tax authorities. As of now, Prestige Estates Projects maintains that this notice is not expected to have a material impact on its overall financial health or operations.