Mahindra Lifespace Developers (532313) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong pre-sales of INR 1,019 crore, a 3x increase year-over-year, driven by new launches and robust market demand in premium and mid-premium housing segments.

• Industrial (IC & IC) business had a good start, with 19 acres leased in Q1, generating INR 76 crore, and strong operational momentum.

• Free cash flow (excluding land outflows) was INR 287 crore in Q1 FY25, supporting a robust balance sheet and growth plans.

• Net profit for Q1 FY25 stood at INR 12.7 crore, turning positive versus a loss in Q1 FY24.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and subjected to a limited review by statutory auditors, with no material misstatements identified.

Financial highlights

• Consolidated total income for Q1 FY25 was INR 206.7 crore, up from INR 110.1 crore in Q1 FY24.

• Consolidated net profit after tax was INR 12.7 crore, compared to a loss of INR 4.3 crore in Q1 FY24.

• Residential collections in Q1: INR 540 crore, up 96% year-over-year.

• Net debt reduced to INR 398 crore; net debt-to-equity ratio improved to 0.21.

• Cost of debt decreased to 8.96% from 9.03% sequentially.

Outlook and guidance

• Pre-sales are expected to remain healthy, though not at the Q1 run rate due to business seasonality.

• FY25 will see at least INR 3,000 crore worth of new launches, with a focus on timely approvals and market-driven launches.

• The company targets INR 8,000–10,000 crore annual sales by 2028, with a cumulative GDV of INR 45,000 crore.

• Profitability is expected to improve from FY26 as legacy projects complete and new, higher-margin projects contribute.

• Planned funding of INR 7,000 crore for growth, with 50% from internal accruals.