Mahindra Lifespace Developers (532313) Q4 07/08 earnings summary

Executive summary

• FY08 standalone total income rose 35% to Rs. 21,996 lakh; PBT reached Rs. 8,378 lakh and PAT Rs. 6,539 lakh, with diluted EPS at Rs. 16.00.

• Consolidated total income was Rs. 26,460 lakh, PBT Rs. 9,265 lakh and PAT Rs. 6,641 lakh; diluted EPS was Rs. 16.26.

• Residential handovers and project launches advanced, while integrated infrastructure projects expanded in Chennai, Jaipur and Sri Lanka.

Financial highlights

• Standalone operating income rose to Rs. 17,212 lakh from Rs. 15,552 lakh; other income increased to Rs. 4,784 lakh from Rs. 773 lakh, including Rs. 1,530 lakh dividend income from a subsidiary.

• Standalone PBT increased 298% to Rs. 8,378 lakh and PAT increased 361% to Rs. 6,539 lakh; total income grew 35% to Rs. 21,996 lakh.

• Consolidated total income increased to Rs. 26,460 lakh from Rs. 22,399 lakh; consolidated PBT rose 240% to Rs. 9,265 lakh and PAT rose 271% to Rs. 6,641 lakh.

• Standalone profit on sale of properties was Rs. 2,308 lakh; profits on sale of long-term and current investments were Rs. 600 lakh and Rs. 115 lakh, respectively.

• Recommended dividends: 25% on paid-up equity shares and 10.5% on preference shares; total payment, including distribution tax, was Rs. 1,316 lakh.

Outlook and guidance

• FY09 plans included launches of Mahindra Eminente phase two, a central Mumbai commercial building, residential projects at Palam Vihar, Faridabad and Nagpur, and a Chennai project through a joint venture.

• Construction of Sylvan County and Mahindra Eminente phase one was advanced, with completion expected in FY09; the Jaipur SEZ was also expected to acquire its remaining 500 acres in FY09.

• Outlook remained optimistic despite an expected minor market correction over the next one to two years; new industrial park projects were expected to be formalised and started during FY09.