Prestige Estates clocked record-high sales in the fourth quarter and full year FY23. The total sales in the fourth quarter improved 19 percent year on year to Rs 3,888 crore, while collections jumped 12 percent to Rs 2,763 crore. The company delivered 1.3 mn sq. ft. of projects during the quarter.

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For the full-year FY23, total sales jumped 25 percent to Rs 12,931 crore, while sales volumes were nearly flat at 15.09 mn sq. ft. The company launched 57 percent higher projects of 26.38 mn sq. ft. and the total units sold stood at 9,644.

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Bengaluru though continues to be the largest market with a 59 percent share in sales, Mumbai is a growing market for Prestige Estates with a 21 percent contribution in overall sales at Rs 1,000 crore. Irfan Razack, Chairman and Managing Director, in an interaction with CNBC-TV18, said: "We will do mindful expansion in Mumbai".

Furthermore, the company acquired full ownership of Prestige (BKC) Realtors Private Limited and Turf Estate Joint Venture LLP. The acquisition is done from DB Group. The first acquisition to increase its stake to 100 percent from 50 percent by acquiring the remaining securities of Prestige (BKC) Realtors Private, is for a consideration of Rs 979 crore. The second acquisition to acquire the remaining 50 percent partnership interest in Turf Estate Joint Venture LLP is for a consideration of Rs 198 crore.

The company said, "These acquisitions help us consolidate our holdings in these marquee assets at key locations. Both the projects are under construction and are expected to be completed within the next 3-4 years".

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Razack said the company exceeded its target of Rs 12,000 crore pre-sales in FY23 and was expecting 20 to 25 percent growth in pre-sales in FY24.

Even with the aggressive growth plans, Prestige Estates does not wish to exceed net debt-to-equity from current levels of 0.8 times. While redevelopment is a new opportunity, it poses new challenges, said Razack.

The stock was trading 2 percent higher on the exchanges at 1 pm on May 31.

Also read: Redevelopment projects are a huge opportunity in Mumbai real estate market: Hiranandani Group

(Edited by : Vahishta Unwalla)