Mahindra Lifespace Developers (532313) Q4 05/06 earnings summary

Executive summary

• FY06 operating income rose 32% to Rs.1,211.3m; PBT increased 31% to Rs.174.9m and PAT rose 40% to Rs.110.0m.

• Residential launches sold rapidly, commercial properties and business centres were near full occupancy, and expansion advanced through new land purchases and SEZ subsidiaries.

• Consolidated operating income reached Rs.2,162.6m and consolidated PAT was Rs.165.0m; the consolidated scope included subsidiaries and joint ventures, with new subsidiaries added during FY06.

Financial highlights

• Standalone operating income was Rs.1,211.3m vs Rs.914.6m; PBT was Rs.174.9m vs Rs.133.4m and PAT was Rs.110.0m vs Rs.78.5m.

• Standalone EPS increased to Rs.3.55 from Rs.2.53; proposed dividends included 10% on equity and specified preference-share dividends, totaling Rs.129.5m including distribution tax.

• Consolidated operating income was Rs.2,162.6m vs Rs.1,233.5m; consolidated PAT was Rs.165.0m vs Rs.3.5m and EPS was Rs.5.32 vs Rs.0.11.

• Consolidated construction work-in-progress rose to Rs.2,643.4m from Rs.2,049.1m, reflecting project activity and development costs.

Outlook and guidance

• FY07 focus remained on residential launches, expanding geographic reach and adding land inventory; Faridabad and Nasik activity was expected to progress subject to approvals and timing.

• Management expected real estate markets to remain buoyant, with growth from innovative residential and commercial products.

• Jaipur and Karla SEZs, each planned across ~3,000 acres, were under development planning with state-government agreements and formalities underway.