Phoenix Mills (503100) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated income from operations grew 12% year-on-year to INR 904 crore, with operating EBITDA up 8% to INR 531 crore and profit after tax rising 10% to INR 295 crore.

• Retail rental income surged 31% year-on-year to INR 487 crore, driven by strong performances in Mumbai and Lucknow and ramp-up in new malls.

• Weighted average trading occupancy across major malls improved to 90% in June 2024 from 88% in March 2024.

• Commercial office portfolio income grew 20% and EBITDA 33% year-on-year, with occupancy rising to 71%.

• Hospitality segment saw mixed results, with St. Regis Mumbai maintaining high occupancy but F&B and banqueting revenue declining, and Courtyard by Marriott Agra revenue down 19%.

Financial highlights

• Operating EBITDA excluding residential business rose 21% year-on-year to INR 525 crore.

• Retail EBITDA for the quarter was INR 516 crore, up 31% year-on-year, with new malls contributing INR 85 crore in rental income.

• Consolidated debt as of June 2024 stood at INR 4,398 crore, with an average cost of 8.79%.

• Group liquidity improved to INR 2,343 crore, and net debt was INR 2,054 crore.

• Operating free cash flow net of taxes and interest was INR 429 crore, down 5% year-on-year.

Outlook and guidance

• Focus remains on retail rental and EBITDA growth, with premiumization and asset enhancements in mature malls.

• Commercial office launches in Bangalore, Pune, and Chennai are expected to drive future growth.

• Targeting an operational portfolio of 14 million sq ft retail, 7 million sq ft commercial, and 1,000 hospitality seats by 2027.

• Bonus share issuance in a 1:1 ratio recommended, pending shareholder approval.

• Recent land acquisitions in Thane and Bengaluru to support growth beyond 2027.