Are Prestige Estates latest results good or bad?

Prestige Estates Projects has reported its financial results for the quarter ending June 2025, showcasing notable operational trends. The company achieved net sales of Rs 2,307.30 crore, reflecting a year-on-year growth of 23.91%, which is the highest quarterly sales recorded in the last five quarters. Additionally, the operating profit before depreciation, interest, and tax (PBDIT) reached Rs 893.80 crore, marking a positive trend in profitability.
The net profit also demonstrated a favorable trajectory, with profit before tax (PBT) at Rs 277.20 crore and profit after tax (PAT) at Rs 292.50 crore, both showing year-on-year growth. However, the company is facing challenges, including a significant quarter-on-quarter rise in interest expenses, which have reached Rs 383.90 crore, indicating an increase in borrowing costs.

Moreover, the inventory turnover ratio has declined to 0.23 times, the lowest in recent periods, suggesting a slowdown in inventory sales. The debtors turnover ratio has also decreased, indicating a slower pace in settling receivables.

In light of these results, the company saw an adjustment in its evaluation over the past three months. Overall, while there are positive trends in sales and profitability, the challenges related to interest expenses and inventory management warrant attention.