GuruFocus -
- Presales (H1 FY25): INR1,415 crore, a 77-78% growth from INR800 crore in H1 FY24.
- Presales (Q2 FY25): INR397 crore, compared to INR455 crore in Q2 FY24.
- New Launch Sales Contribution: INR931 crore of the INR1,415 crore in H1 FY25.
- IC and I Revenue (H1 FY25): INR163 crore from leasing over 35 acres.
- IC and I Revenue (Q2 FY25): INR87 crore.
- Consolidated Operating Income (H1 FY25): INR196 crore, 70% higher than H1 FY24.
- Share of JV and Associates (H1 FY25): INR73 crore, up from INR25 crore in H1 FY24.
- Consolidated PAT (H1 FY25): Negative INR1 crore, improved from negative INR23 crore in H1 FY24.
- Consolidated Total Income (Q2 FY25): INR16 crore, compared to INR25.7 crore in Q2 FY24.
- Share of JV and Associates (Q2 FY25): INR36 crore, up from INR1 crore in Q2 FY24.
- Consolidated PAT (Q2 FY25): Loss of INR14 crore, compared to a loss of INR19 crore in Q2 FY24.
- Operating Cash Flow (Q2 FY25): INR261 crore, compared to INR118 crore in Q2 FY24.
- Operating Cash Flow (H1 FY25): INR548 crore, nearly double from INR249 crore in H1 FY24.
- Net Debt: INR477 crore, with a net debt to equity ratio of 0.26.
- Weighted Average Cost of Borrowing: 8.83%, down by 13 basis points from Q1 FY25.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mahindra Lifespace Developers Ltd (BOM:532313) reported a significant 77-78% growth in presales for H1 FY25, reaching INR 1,415 crore compared to INR 800 crore in the same period last year.
- The company has a robust pipeline of new launches planned for the latter part of the year, including projects in Bangalore, Pune, and Chennai, which are expected to boost sales.
- The industrial business segment showed strong performance, with INR 163 crore of revenue from leasing over 35 acres of land, indicating healthy demand in the industrial sector.
- Operating cash flow for H1 FY25 was nearly INR 550 crore, more than double the previous year's figure, reflecting strong collections and financial health.
- The company maintains a conservative net debt to equity ratio of 0.26, indicating prudent financial management and capacity for future growth investments.
- Quarter 2 FY25 presales were lower at INR 397 crore compared to INR 455 crore in the previous year, attributed to fewer launches and seasonal factors.
- The affordable housing segment is experiencing slower sales compared to mid-premium and premium segments, affected by high interest rates and economic factors.
- The Santa Cruz redevelopment project is facing delays due to complexities in aligning multiple societies, impacting the project's timeline.
- There is a high expectation from landowners in booming markets, which poses challenges in acquiring new land deals at reasonable prices.
- The company faces challenges in efficiently upstreaming cash from different entities, impacting the deployment of available cash reserves.
A: Amit Sinha, CEO, mentioned several projects including Vista with over INR 1,000 crore of inventory, Code Name Navy in Mallard at INR 1,000 crore, and Crown Phase 2 in Pune with INR 800 crore. Other projects include Pink in Jaipur and Zen 2 in Bangalore, with GDVs of INR 200 crore and INR 250-300 crore respectively.
Q: What caused the lower presales this quarter, and how do you plan to address it?
A: Amit Sinha explained that the lower presales were due to fewer launches, as one planned launch was deferred. He emphasized that more launches are planned, which should boost presales. The affordable segment has been slower, but they are seeing good progress in other areas.
Q: What is the strategy for new business development in FY25 and FY26?
A: Amit Sinha stated that the company aims to surpass last year's GDB of INR 4,400 crore. They are cautious about land deals, ensuring they meet financial expectations. The company is focused on closing the right deals and will update on progress in the coming months.
Q: Can you update us on the status of the Santa Cruz redevelopment project?
A: Amit Sinha acknowledged delays due to complexities involving two different societies. They are working to align both parties and finalize agreements. The process is slower than expected, but they are in the final stages of negotiation.
Q: How is the industrial business performing, and what are the future plans?
A: Amit Sinha highlighted strong performance in the industrial sector, with plans to expand in Chennai, Jaipur, and Ahmedabad. They are working on converting land for better utilization and have a potential PAT of INR 2,000 crore over the next 10 years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.