The Phoenix Mills Q1 FY2018 Consumption up 19% y-o-y at INR 16 Billion

MUMBAI, August 11, 2017 /PRNewswire/ --

Rental Income for Q1 FY2018 at INR 2.1 billion, up 17% y-o-y 

The Phoenix Mills Limited (PML), India's largest retail led mixed-use asset developer and operator, today reported its financial results for the first quarter ended on June 30, 2017 as approved by its Board of Directors.

Financial Highlights

Q1 FY2018 Standalone

• Revenue from operations at INR 982 million, up by 8% y-o-y; standalone revenue comprises rental from High Street Phoenix and Palladium and rental from commercial properties
• EBITDA at INR 640 million
• Profit after tax and before other comprehensive income at INR 312 million

Q1 FY2018 Consolidated 

• Revenue from operations at INR 3,959 million; EBITDA at INR 1,760 million
• Profit after tax (after minority interest and before other comprehensive income) was at INR 426 million
• Consolidated Financials of Q1 FY2018 are not comparable with Q1 FY2017 as Classic Mall Development Company Private Limited (CMDCPL), which owns and operates the retail mall known as Phoenix MarketCity, Chennai, has ceased to be the company's subsidiary effective 31st March, 2017 and has since been re-classified as an associate of the company. Pursuant to the said re-classification, the Income from operations of Rs. 592 million as well as the Expenses, including Taxes, of Rs. 376 million for the current quarter of CMDCPL have not been consolidated on line-by-line basis and are thus not comparable with the corresponding figures of the previous periods
• Adjusting for the above, on a like-to-like basis, Q1 FY2018 revenue would have been up 3% and EBITDA up 5%

Business highlights 

Retail - contributed 69% to Q1 FY2018 consolidated revenue 

• Aggregate consumption across our malls grew at an impressive 19% y-o-y to INR 16 billion in Q1
• Rental income from the retail portfolio came in at INR 2.1 billion, up 17% y-o-y
• Retail EBITDA was INR 2 billion, up 18% y-o-y

Strategic Investment Platform

• In April 2017, Canada Pension Plan Investment Board (CPPIB) invested INR 7.24 billion for 30% stake in Island Star Mall Developers Pvt. Ltd. (ISMDPL), a PML subsidiary which owns Phoenix MarketCity, Bangalore
• CPPIB plans to invest an additional INR 9 billion in multiple tranches to bring its stake up to 49%. The transaction valued ISMDPL at pre-money enterprise value of INR 22 billion
• ISMDPL will be the strategic investment platform that will develop, own and operate retail led mixed-use developments across India

Hospitality - contributed 19% to Q1 FY2018 revenue 

- The St. Regis, Mumbai

• Total Income was up 19% driven by higher average occupancy during Q1 FY2018 at 72%, up from 61% in Q1 FY2017
• ARR in Q1 FY2018 was INR 10,779, an increase of 8% over Q1 FY2017

- Courtyard by Marriott, Agra

• Total Income was up 20% driven by strong performance by F&B and banquets
• Average occupancy during Q1 FY2018 was 51% from 40% in Q1 FY2017

Commercial

• Revenue from the sale of commercial properties have been completely recognised by March 31, 2017
• As on 30th June 2017, the company leased 0.65 million square feet at an average rate of INR 97 per square feet
• Good traction seen in leasing at Art Guild House; 64% of the available leasable area has been leased

Residential - contributed 12% to Q1 FY2018 revenue

• INR 628 million of revenue recognized for One Bangalore West, Kessaku and The Crest projects
• Total collection during the quarter was INR 613 million

Commenting on the Q1 FY2018 performance, Mr. Shishir Shrivastava, Joint Managing Director, The Phoenix Mills, said, "I am excited to see 19% growth in aggregate consumption across our eight malls in six cities. Our rental and hospitality assets continue to perform well. Rental Income across our retail portfolio is up by 17% while our hospitality portfolio posted a robust top-line of INR 749 million, up 20% y-o-y. As our rental income is linked to overall consumption at our malls, PML is a key beneficiary of urban lifestyle retail growth in India." 

Commenting on the reducing finance costs Pradumna Kanodia, Director- Finance, The Phoenix Mills commented, "At PML, we have steadily brought down our borrowing costs. From 11.0% in March 2016, the average interest rate on our borrowings is now down to 9.5%. We further expect the blended rate to come down as we refinance our loans at lower interest rates of 8.5%-8.7%."

About The Phoenix Mills Limited (PML) 

PML (BSE: 503100 | NSE: PHOENIXLTD) is a leading retail mall developer and operator in India with approximately 6.0 million square feet of retail space spread across eight malls in six gateway cities of India. PML is the pioneer of retail-led, mixed-use developments in India and has developed over 17.5 million square feet spread across retail, hospitality, commercial, and residential asset classes.

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]