Mahindra Lifespace Developers (532313) Q4 06/07 earnings summary

Executive summary

• FY07 standalone total income rose 31.5% to Rs.16,325 lakh; PBT increased 20.4% to Rs.2,105 lakh and PAT rose 28.8% to Rs.1,417 lakh. Diluted EPS reached Rs.3.81 from Rs.0.51.

• The strategy combined premium residential development with expansion of SEZs, commercial space and infrastructure; a Rs.48,000 lakh QIP and promoter warrant conversions strengthened funding.

• Consolidated total income was Rs.22,399 lakh, with consolidated net profit of Rs.1,790 lakh after minority interest.

Financial highlights

• Standalone operating income was Rs.15,552 lakh and other income Rs.773 lakh, taking total income to Rs.16,325 lakh versus Rs.12,413 lakh in FY06.

• Standalone PBT was Rs.2,105 lakh versus Rs.1,749 lakh; PAT was Rs.1,417 lakh versus Rs.1,100 lakh, including Rs.232 lakh tax provision for earlier years in FY07.

• Consolidated total income was Rs.22,399 lakh versus Rs.22,073 lakh; PBT was Rs.2,723 lakh versus Rs.2,494 lakh and consolidated net profit Rs.1,790 lakh versus Rs.1,650 lakh.

• Operating expenses rose to Rs.11,981 lakh from Rs.8,660 lakh; higher cement and steel costs contributed to operating expenses increasing to 77% of total income from 71.5%.

• Proposed FY07 dividends: 15% on equity shares and 10.5% on preference shares; total payment including distribution tax was Rs.824 lakh.

Outlook and guidance

• FY08 outlook was optimistic, with residential launches remaining a priority and expected SEZ policy clarity potentially enabling faster development.

• Completion and phased handover of The Woods and Sylvan County were targeted during FY08; construction was expected to start at conceived projects as approvals allowed.

• Mahindra World City, Chennai, was expected to become fully operational by 2009-10; its integrated township was planned over the following 4–6 years.

• Jaipur Mahindra Technology Park plans called for ~1 million sq. ft. of built-up area over time, with 0.20 million sq. ft. under development.