Phoenix Mills (503100) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated income from operations grew 12% year-over-year to INR 904 crore, with operating EBITDA up 8% to INR 531 crore and profit after tax rising 10% to INR 295 crore.

• Retail rental income increased 31% year-over-year to INR 487 crore, driven by strong performances in Mumbai and Lucknow and ramp-up in new malls.

• Commercial office portfolio in Mumbai and Pune delivered 20% growth in total income and 33% growth in EBITDA, with occupancy rising to 71%.

• Hospitality segment saw mixed results, with St. Regis Mumbai maintaining high occupancy but F&B and banqueting revenue declining, and Courtyard by Marriott Agra revenue down 19%.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, including a 1:1 bonus share issue and increase in authorised share capital.

Financial highlights

• Operating EBITDA, excluding the residential business, was INR 525 crore, up 21% year-over-year.

• Retail EBITDA for the quarter was INR 516 crore, up 31% year-over-year, with new malls contributing INR 85 crore in rental income and INR 86 crore in EBITDA.

• Commercial portfolio EBITDA grew by 33% year-over-year, driven by improved occupancy.

• Group level liquidity improved to INR 2,343 crore as of June 2024, with net debt at INR 2,054 crore.

• Net cash flow from operations was INR 514 crore, with operating free cash flow (net of taxes and interest) at INR 429 crore for Q1 FY25.

Outlook and guidance

• Focus remains on retail rental and EBITDA growth, with premiumization and enhanced retail mix in mature assets.

• Asset enhancements and marketing initiatives are expected to sustain growth in coming quarters.

• Commercial office launches in Bangalore, Pune, and Chennai are anticipated, with strong leasing interest.

• Portfolio expansion planned to over 14 million sq ft retail, 7 million sq ft commercial, and 988–1,000 hotel keys by 2027.

• Recent land acquisitions in Thane and Bengaluru to support growth beyond 2027.