Prestige Estates shares fell as much as 8.2 per cent to hit fresh 52-week low of Rs 156.65 after the company reported a 78 per cent fall in its net profit during the December quarter.
The Bangalore-based real estate developer on Tuesday posted a net profit of Rs 63.60 crore on total income of Rs 980 crore. Prestige Estates had reported a profit of Rs 293 crore on sales of 3,527 crore during the same period last financial year.
Limited new launches in the first nine months of FY16 led to lower revenue realizations, Religare said in a note to its clients. Prestige Estates’ pre-sales revenue of Rs 500 crore was 11 per cent lower than estimates, the brokerage said.
Religare, however, maintained its “buy” call on Prestige Estates. Weakness in operational metrics is already in the price and steady volume growth and a strong commercial portfolio should help sustain near-term cash flows, the brokerage said.
Shares of Prestige Estates ended 6.5 per cent lower at Rs 158.90.