Prestige Estates Projects Ltd has provided corporate guarantees totaling Rs.545 crore for credit facilities obtained by two of its jointly controlled entities, Thomsun Realtors Private Ltd and Techzone Technologies Private Ltd.
In a regulatory filing Prestige Estates Projects informed,”we would like to inform that the Company is issuing a Corporate Guarantee for the Credit Facility being accessed by its jointly controlled entities, Thomsun Realtors Private Limited and Techzone Technologies Private Limited."
Prestige Estates confirmed the issuance of a Rs.75 crore corporate guarantee for Thomsun Realtors, with Catalyst Trusteeship Ltd serving as the trustee for Aditya Birla Finance Ltd.
A separate corporate guarantee of Rs.470 crore has been issued for Techzone Technologies, with Axis Trustee Services Ltd serving as the trustee for Axis Bank Ltd.
The promoter group of Prestige Estates holds no financial stake in these transactions, and both guarantees have been issued on an arm's length basis, in compliance with the Companies Act, 2013, and SEBI regulations. The company emphasized that the guarantees are classified as contingent liabilities and are unlikely to impact its financial position.
According to a regulatory filing Prestige Estates Projects reported that a 3.4% year-on-year (YoY) decline in net profit, amounting to Rs.307 crore for the first quarter ending June 30, 2024. In the same quarter last year, the company posted a net profit of Rs.317.8 crore.
The company's performance in the first quarter of this fiscal year demonstrates a notable improvement compared to the same period in the previous fiscal year. Revenue from operations witnessed a substantial increase of 10.8%, rising from Rs.1,680.9 crore to Rs.1,862.1 crore. This upward trajectory was even more pronounced at the operating level, where EBITDA surged by an impressive 51.2%, climbing from Rs.526.7 crore to Rs.796.3 crore.
The EBITDA margin also exhibited a significant enhancement, expanding from 31.3% in the corresponding period of the previous fiscal to 42.8% in the reporting quarter. This metric, which stands for earnings before interest, tax, depreciation, and amortization, reflects the company's improved operational efficiency and profitability.
In the stock market, shares of Prestige Estates Projects Ltd closed at Rs.1,898.35, marking an increase of Rs. 25.10 or 1.34% on the BSE, indicating positive investor sentiment in response to the company's solid financial performance.
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