Mahindra Lifespace Developers (532313) Q2 24/25 earnings summary

Executive summary

• Strong market momentum in residential and industrial segments, with robust absorption and healthy launch pipelines, especially in Mumbai, Pune, and Bangalore, despite some slowdown in NCR and Hyderabad.

• H1 FY25 pre-sales/GDV reached INR 1,415 crore, up 77%-78% year-over-year; Q2 pre-sales were INR 397 crore, lower due to seasonality and fewer launches.

• Industrial business performed well, with INR 163 crore revenue from leasing 35 acres in Jaipur and Chennai in H1.

• Strategic focus on scaling business 5X to Rs 8,000-10,000 crore sales by 2028, supported by robust project pipeline and funding plans.

• Recognized for sustainability, innovation, and customer experience, with multiple industry awards and net zero projects.

• Unaudited consolidated and standalone financial results for Q2 and H1 FY25 were approved on October 25, 2024, following a limited review by statutory auditors.

Financial highlights

• H1 FY25 consolidated operating income was INR 196 crore, up 70% year-over-year.

• H1 FY25 residential GDV reached Rs 1,415 crore, up from Rs 800 crore in H1 FY24; Q2 FY25 at Rs 397 crore.

• H1 FY25 leasing revenue at Rs 163 crore, with Q2 FY25 at Rs 87 crore.

• Free cash flow for H1 FY25 at Rs 548 crore, more than double H1 FY24.

• H1 FY25 PAT improved to a loss of INR 1 crore from a loss of INR 23 crore in H1 FY24; consolidated net loss after tax for Q2 was ₹1,401 lakhs and for H1 was ₹127 lakhs.

Outlook and guidance

• Multiple new launches planned for H2, including major projects in Mumbai, Pune, Bangalore, and Jaipur, with expected inventory launches exceeding INR 4,000 crore.

• Targeting Rs 8,000-10,000 crore in sales by 2028, with a cumulative GDV of Rs 45,000 crore.

• Planned funding of Rs 7,000 crore, with 50% internal accruals.

• High visibility on residential growth with a total potential sales pipeline of Rs 22,650 crore.

• Management notes that quarterly/periodic results are not representative of full-year operations due to the nature of the real estate business.