Mahindra Lifespace Developers (532313) Q4 01/02 earnings summary

Executive summary

• Realty and infrastructure operations were combined from 1 April 2001 through a demerger; the resulting accounts include the transferred businesses and are not comparable with FY01.

• Revenue reached Rs 191.14 crore amid economic slowdown; PBT was Rs 5.04 crore, down 10% from the prior year, primarily due to higher costs after the merger.

• Residential development remained the primary focus, supported by commercial-complex operations, project development and business-centre activities.

Financial highlights

• Income was Rs 191.14 crore versus Rs 26.03 crore in FY01; operating income was Rs 169.97 crore and other income Rs 21.17 crore.

• PBT was Rs 5.04 crore versus Rs 5.61 crore; depreciation was Rs 6.29 crore and interest and finance charges Rs 40.57 crore.

• Profit after tax was Rs 2.57 crore versus Rs 5.11 crore; a deferred-tax charge of Rs 2.02 crore was recorded in FY02.

• Basic and diluted EPS was negative Rs 2.09 after preference dividends; EPS before preference dividends was Rs 0.83.

• Recommended dividends totalled Rs 12.16 crore across preference and equity shares, versus Rs 3.45 crore in the previous year.

Outlook and guidance

• Residential remains the main focus, with priorities on timely project delivery, value for customers, cost control and quality monitoring.

• Lower housing-finance rates were expected to support mid-market demand; opportunities in smaller metros were under consideration.

• Retail and entertainment projects were expected to gain momentum, with several projects likely to become operational in FY03.

• Cost and expense control remained a priority given uncertainty in the domestic economic outlook; the Mahindra Gesco Excellence Module was introduced to clarify roles and measurable tasks.