In an interview to CNBC-TV18, Irfan Razack, CMD of Prestige Estates, discusses the company‘s earnings and its plans ahead.
Prestige Estates posted a 25 percent rise in its Q2 net profit at Rs 96.9 crore against Rs 77.6 crore on a year-on-year basis. Revenues were up 13.6 percent at Rs 540.3 crore against Rs 475.3 crore and EBITDA was up 28 percent to Rs 152.2 crore against Rs 118.7 crore. Operating margins stood at 28.2 percent against 25 percent.
In an interview to CNBC-TV18, Irfan Razack, CMD of Prestige Estates, discusses the company’s earnings and its plans ahead.
Below is the transcript of Irfan Razack’s interview to CNBC-TV18’s Latha Venkatesh and Anuj Singhal
Latha: You had posted very good quarterly numbers though a few investors complained that it was a tad below their estimates. Revenues were not upto their estimates, is it because there were no big projects that were realised this quarter?
A: This is a question of revenue recognition, I think we have recognised a fair bit of revenue even this quarter and that revenue will get kicked up in the next two quarters because tad more projects will be added up to the revenue recognition. All in all even this quarter in terms of financial performance we are quite happy with what we have done. At the same time even the operational performance wise I think we did spectacular amount of sales and getting closer and closer to the guidance that we had given in terms of sales for the whole financial year. We are pretty confident on all these notes and things on ground are pretty good.
Anuj: Can you tell us the kind of launches that you have planned next and the kind of pricing or realisations that you would expect over the next few quarters?
A: Last quarter we launched couple of properties called Prestige Temple Bells, Prestige Gulmohar in the mid segment. And then in the luxury segment we launched the Prestige Leela Residences next to the Leela Palace Hotel on old Airport Road in Bangalore. We also launched Prestige Tranquility which is a luxury development in CBD.
Having done all that now the focus will be to see that we get the sales and the realisations from these projects. This quarter there is no plan for us to launch any more new projects because we already have a lot of launches that we have done so we need to see and stabilise and consolidate our positions on that.
Going forward the last quarter of the year we will have a few launches including other cities like Hyderabad and Kochi where we are getting ready with the marketing material and the approvals. And once they fall in place we will be ready to do some large launches in those cities. So the whole mood is pretty bullish.
Latha: You will maintain your margins at 28 percent plus?
A: Yes I think that is the whole focus because we have a blend of different types of products. The whole point is without overcharging the customer how can we work in an efficient manner because I have always been saying this right across, no one is willing to either pay you for your extravagance or for your inefficiency, how I can produce my product efficiently and offer it at a fair price to my customers and still get my margins. So that has been always a challenge for everyone and somehow we are achieving that.