Prozone Realty Limited — Important, 11-02-2025: Updates

**Financial Highlights:** Prozone Realty Ltd reported a 7% increase in leasing revenue for Q3 FY25, reaching Rs 304.3 Cr, and a total operational income of Rs 448.5 Cr, reflecting an 8% growth compared to the previous year. Notably, the EBITDA for this quarter rose by 20% to Rs 198.7 Cr, with an improved margin of 44.3%, driven by a greater share of the retail business. The interest expenses have decreased by 26%, illustrating effective cost management.

**Strategic Initiatives and Growth Drivers:** The company continues to expand its retail space, with a focus on Tier 2 and 3 cities targeted for strong urbanization and consumer growth. Prozone successfully opened five new stores across its Aurangabad and Coimbatore malls, raising the total leased area to 5.11 lakh sq. ft. in Aurangabad and 4.56 lakh sq. ft. in Coimbatore, showcasing an occupancy rate of 73% and 91% respectively.

**Business Developments:** The leasing initiatives have led to notable traction, with significant areas signed or under fit-out, including a combined 14,000 sq. ft. of space across two malls, alongside ongoing discussions for an additional 51,900 sq. ft.

**Market Position and Competitive Advantage:** Prozone continues to establish itself as a dominant regional shopping destination with high footfall and retailer sales, achieving record sales figures and footfalls in Q3 FY25.

**Investor Implications:** With reduced debt costs, improved margins, and robust performance indicators, Prozone maintains a positive outlook for future growth, driven by strategic expansions and successful asset management in a burgeoning retail sector.