Company Update : Mahindra Lifespace Ltd By Motilal Oswal Financial Services Ltd
Strong bookings amid revenue miss
Strong collections; debt declines
Operational performance
* MLDL achieved bookings of INR10.5b in 4QFY25, down 3% YoY and up 3x QoQ. FY25 bookings stood at INR28b, up 20% YoY (15% beat), aided by strong bookings of ~INR21b in 1QFY25 and 4QFY25 on the back of successful launches of Vista Ph2, IvyLush, Zen and Green Estates. The company aspires to achieve its long-term (5 Years) yearly presales target of INR80-100b.
* 4Q sales volume stood at 1.0msf, up 21% YoY and 2x QoQ (80% above estimate). For FY25, sales volume rose 28% YoY to 3.2msf (17% above estimate).
* Blended realization in 4QFY25 was down 20% YoY and up 38% QoQ at ~INR8,818 psf.
* The company achieved quarterly collections of INR4.7b, up 13% YoY/ 27% QoQ.
* In 4QFY25, MLDL added a project with a GDV of INR36.5b. Additionally, the company plans to add a GDV of ~INR59b.
* In the near term, launches are expected to remain strong as the company has a pipeline of ~18.11msf across its new and existing projects.
* In the IC&IC segment, the company leased 85.1 acres for revenue of INR4.9b.
* The net debt-to-equity ratio stood at 0.39x (vs. 0.5x in 3QFY25).
* Recommended final dividend of INR2.8 per share on the equity shares of Rs.10 each for FY25.
Financial performance
4QFY25
* Revenue came in at INR92m, down 35% YoY and ~2x QoQ (75% below estimate).
* Operating loss stood at INR552m vs. a loss of INR541m in 4QFY24.
* PAT was up 19% YoY at INR851m (22% below estimate), aided by higher other income of INR462m and strong leasing income from IC&IC segment.
FY25
* Revenue came in at INR3.7b, up 76% YoY (7% below estimate).
* MLDL reported an operating loss of INR1.7b, flat YoY.
* PAT was down 38% YoY at INR613m (28% below estimate).
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