Prestige Estates reported a dip of 84 per cent in its net consolidated profit during the first quarter of the financial year 2020-21. Its profit after tax (PAT) stood at Rs 20 crore in Q1 FY21 as against Rs 123.90 crore it registered in the corresponding quarter previous fiscal, the company said in a BSE filing.
The company’s net consolidated income stood at Rs 1,296.30 crore in Q1 FY21, a dip of 17 per cent from Rs 1,567.40 crore it recorded in the similar quarter last year.
In the regulatory filing it said, the company had entered into a registered Joint Development Agreement (JDA) with a certain land owner to develop a residential project. Under the said JDA, the company acquired development rights over a certain parcel of land and in exchange was required to provide developed units with a certain specified built-up area. The company had also incurred Transferrable Development Rights (TDR’s) of Rs 88.1 crore which are recoverable from the land owner company along with an interest of 12% per annum, from the sale of units from the residential project.
As at June 30, 2020, gross receivables due from the land owner company towards TDR’s aggregate to Rs 92.3 crore.
The group has also acquired further 30.21% equity stake and 4.57% preference share in DB (BKC) Realtors subsequent to quarter ended June 30, 2020.
During the quarter ended 30 lune 2020, the leasing and hospitality operations of the group was impacted due to Covid-19 restrictions. Due to the prevailing circumstances, it has recognized revenue for the quarter and the underlying receivables after having regard to it’s ongoing discussions with certain customers on best estimate basis, the company said in the regulatory filing.