The Phoenix Mills Ltd. Reports Strong Q1 FY19 PAT at INR 597 mn, up 40% y-o-y

MUMBAI, August 9, 2018 /PRNewswire/ --

Q1 Retail rental income at INR 2.4 billion, up 15% y -o-y  

The Phoenix Mills Limited (PML), India's largest retail-led mixed-use asset developer and operator, today reported its unaudited financial results for the first quarter and 3 months ended on June 30, 2018 as approved by its Board of Directors.

Financial Highlights - Q1 FY2019 Consolidated  

• Revenue from operations at INR 4,132 million, up 4% y-o-y
• EBITDA at INR 1,953 million, up 11% y-o-y
• Profit after tax (after minority interest and before other comprehensive income) at INR 597 million, up 40% y-o-y

"Aggregate retail rental income across our malls continued to show momentum during the first quarter of FY 2019, reporting a robust growth of 15% backed by an aggregate consumption of INR 17.0 billion across our malls. The hotel portfolio did quite well in what is usually a seasonally weak quarter for the hotel industry due to very low inbound tourist traffic. With 5 acquisitions during the last 14 months, comprising a combination of land parcels and under-construction assets, we demonstrated our resolve to achieve the target of doubling the retail portfolio in the next 4-5 years", said Mr. Shishir Shrivastava, Joint Managing Director, The Phoenix Mills Limited.

Commenting on the financial performance, Mr. Pradumna Kanodia, Director - Finance, The Phoenix Mills Limited said, "An excellent performance during the quarter in our retail and commercial portfolios helped us post 11% y-o-y growth in EBITDA and an impressive 40% y-o-y growth in profit after tax. This is helping us generate superior cash flows which we are prudently deploying for our growth initiatives, resulting in much lesser additional debt relative to our deployment. Improvement in credit ratings across our SPVs is a testimony to the company's conservative and prudent fiscal discipline. The company's future growth plans will also be guided by such judiciously planned capital allocation strategy."

Retail - contributed 70% to Q1 FY2019 consolidated revenue  

• Aggregate consumption across our malls during Q1 FY2019 was INR 17.0 billion, up 5% y-o-y
• Aggregate retail rental income across our malls was INR 2.4 billion, up by 15% y-o-y
• PML has closed 4 acquisitions - land parcels in Bangalore and Ahmedabad, under-construction retail assets in Lucknow and Indore - between April and July 2018
• Together with Wakad, Pune, the above acquisitions take our under-development retail leasable portfolio to c.4.6 million sq.ft

Commercial - contributed 4% to Q1 FY2019 revenue 

• As on June 30, 2018, the company leased 0.81 million square feet out of 1.16 million square feet of net leasable area
• Rental income from commercial portfolio came in at INR 149 million
• Art Guild House in Mumbai generated a rental income of INR 94 million during Q1

Hospitality - contributed 19% to Q1 FY2019 revenue  

• The St. Regis, Mumbai  
  • Q1 FY19 Room Revenues were up 8% y-o-y to INR 294 million
  • ARR for the quarter was INR 11,295, up 5% y-o-y
  • Q1 FY19 average occupancy was strong at 74%, up 2 percentage points compared to the prior year period
  • EBITDA for Q1 FY19 at INR 242 million was up 9% y-o-y
• Courtyard by Marriott, Agra 
  • Total Income came in at INR 56 million
  • Q1 FY19 average occupancy was at 47%, down from 51% in corresponding quarter of the previous year
  • ARR for Q1 FY19 was Rs. 3,181, up from INR 3,094 in corresponding quarter of the previous year

Residential - contributed 4% to Q1 FY2019 revenue 

• INR 281 million of revenue recognized for One Bangalore West in Q1 FY19
• Sales during Q1 FY19 came in at INR 186 million
• Total collection of the residential segment during Q1 FY19 was INR 257 million

NOTE:
Palladium Constructions Pvt Ltd (One Bangalore West and Kessaku projects) has aligned its policy of revenue recognition with Ind AS 115 'Revenue from Contracts with Customers' which is effective from April 1, 2018. Accordingly, revenue in realty business is recognised on delivery of units to customers as against recognition based on percentage completion method followed so far in accordance with the Guidance note issued by ICAI. The company has followed modified retrospective method to the contracts that were not completed as at April 1, 2018 and cumulative effect of initial application has been adjusted in opening retained earnings as permitted by the standard. Accordingly, the comparatives have not been restated and hence not comparable with previous period figures.

The transitional adjustment of INR 1,132 million (net of deferred tax) has been adjusted against the opening retained earnings and for quarter ended June 30, 2018, the income from the projects is lower by INR 116 million, Cost of sales is lower by INR 29.3 million and profit after tax is lower by INR 56.7 million. Accordingly, the comparatives have not been restated and hence not comparable with previous period figures.

About The Phoenix Mills Limited (PML) 

PML (BSE: 503100) (NSE: PHOENIXLTD) is a leading retail mall developer and operator in India and is the pioneer of retail-led, mixed-use developments in India with completed development of over 17.5 million square feet spread across retail, hospitality, commercial, and residential asset classes. The company has an operational retail portfolio of approximately 6.0 million square feet of retail space spread across 8 operational malls in 6 gateway cities of India. The company is further developing 5 malls with over 4.6 million sq. feet of retail space in 5 gateway cities of India.

For further information, kindly contact:
The Phoenix Mills Limited
Varun Parwal
VP - Finance & Investor Relations
+91-22-3001-6737
[email protected]

Dickenson Group
Mehul Mehta
President - Financial PR
+91-98202-80325
[email protected]