Mahindra Lifespace Developers (532313) Q4 03/04 earnings summary

Executive summary

• FY04 total income Rs 100.67 cr vs Rs 92.37 cr; PBT Rs 7.69 cr vs Rs 5.49 cr, with residential development the main growth and profit driver.

• Operating income rose 20.43% YoY to Rs 71.39 cr, despite the prior year including a one-time Rs 14.50 cr Tirupur project item.

Financial highlights

• Net profit after tax Rs 6.36 cr vs Rs 2.31 cr; basic and diluted EPS Rs 1.78 vs Rs 0.47 after extraordinary items.

• Other income included one-time liability remissions of Rs 15.11 cr principal and Rs 2.29 cr interest, credited to P&L as exceptional income.

• A Rs 1.07 cr project exposure was written off following termination of a joint venture.

Outlook and guidance

• FY05 priorities: consolidate existing locations and cautiously enter new centres; project operating margins targeted to improve through resource use, cost control, stronger realizations and service quality.

• Residential outlook remained bullish; commercial outlook cautiously optimistic.