Company Update : Mahindra Lifespace Ltd By Motilal Oswal Financial Services Ltd
Weak bookings; poor sales from JV and IC&IC businesses
Weak collections; debt mounts
Operational performance
* MLDL achieved bookings of INR3.3b, down 25%/16% YoY/QoQ (44% below estimate), whereas 9MFY25 bookings stood at INR18b, up 41% YoY, backed by strong bookings of INR10.2b for 1QFY25
* Sales volume in 3QFY25 stood at 0.5msf, down 15% each YoY and QoQ. Blended realization was also down 11% YoY to ~INR7,422 psf.
* The company achieved quarterly collections of INR3.7b, down 5%/20% YoY/QoQ.
* In 3QFY25, MLDL added a project located in Bhandup with 3.6msf development potential, translating into a GDV of ~INR120b, by executing a JDA with GKW Ltd.
* Post 3Q, MLDL acquired 8.2 acres of land in North Bengaluru with a development potential of 0.9msf translating to GDV of INR10b. Additionally, the company plans to add a GDV of ~INR95b.
* In 3QFY25, MLDL launched 0.67msf of the project. Launches in the near term are expected to remain strong as the company has a pipeline of ~18.11msf across its new and existing projects.
* In the IC segment, the company leased 12.4 acres for INR0.5b.
* Net debt to equity stood at 0.5x and the cost of debt was 8.9%
Financial performance
* MLDL’s revenue came in at INR1.7b, up 2x/22x YoY/QoQ (90% above estimate).
* For 3QFY25, MLDL reported an operating loss of INR254m against a loss of INR390m for 3QFY24.
* MLDL reported a loss of INR225m, due to lower sales from the JV projects and the IC businesses.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
