Prestige Estates

The company posted a set of disappointing numbers for Q4FY14. Slack demand and increased costs, pushed down the topline and bottom line. On a net sales of Rs.272 crore, down 4% (YoY) and down 26% (QoQ), it posted a net profit of Rs.26 crore v/s Rs.29 crore in Q3 and Rs.28 crore in previous Q4. The company’s operating costs rose, at 91% of net sales for Q4 compared to 89% in Q3 and 86% in previous Q4. This rise in cost was mainly led by higher depreciation and employee costs. The fall in net profit for the quarter would have been much lower but for the lower tax outgo and an exceptional income of Rs.8 crore – of this Rs.3 crore was received as compensation  for its land at Bangalore and Rs.5 crore it received as interest on account of delay in settlement  of compensation.

The company’s kitchen appliances unit showed a drop in sales and its EBIT also dropped sharply  from Rs.41 crore in Q4FY13 to Rs.25 crore in Q4FY14, sequentially EBIT was down 43%. The company’s debt has been coming down consistently; it was at Rs.26 crore compared to Rs.114 crore in Q4FY13. The falling demand in Southern markets and high-base of induction sales in other regions led to the decline in sales. Hopefully, things will look up from FY15, with new product launches and new markets in non-south regions. 

The company ended FY14 on a dismal note, with net sales for the fiscal coming in at Rs.1294 crore, down 5% and net profit was at Rs.112 crore, down 16%.