Has The Realty Sector Turned Around? Mahindra Lifespaces’ Residential Sales Grows By 76 Pc During The Quarter Vs Q1 FY19

BUSINESS PERFORMANCE FOR Q2 FY19: The operating highlights for Q2 FY19 for the Company and its subsidiaries / joint ventures / associates engaged in the real estate business are given below:  

Residential (Mid-Premium Residential and Affordable Housing)

·Achieved sales of Rs. 256 crores.

·Attained collection of Rs. 249 crores – highest in the last 4 years.

·Completed Phase I of Windchimes, Bengaluru having 0.44 msft of saleable* area.

·Executed definitive agreements for acquisition of a land parcel on Kalyan – Bhiwandi Road having a development potential of ~0.84 msft targeting the affordable housing segment.

Integrated Cities & Industrial Clusters

·Achieved lease value of Rs. 67.4 crores.

·Pursuant to the strategic partnership with International Finance Corporation (IFC), received funding of Rs. ~195 crore in Mahindra World City, Jaipur.

FINANCIAL PERFORMANCE FOR Q2 FY19

The Company has adopted IND AS 115 during Q1 FY19, effective from 1st April 2018 and has opted for the modified retrospective method. Hence, the revenue recognition of residential projects is upon completion as against on the basis of percentage of completion method (POCM) followed earlier. Therefore, FY19 financials are not comparable with previous reporting periods.

The consolidated total income does not include the impact of line by line consolidation of key operating entities, which are now consolidated based on equity method of consolidation in accordance with IND AS.

• The consolidated total income for the quarter was Rs. 93.9 crores as against Rs. 129.1 crores in Q2 FY18 and Rs. 175.8 crores in Q1 FY19.

·Consolidated EBITDA margin stood at 57.0% for the quarter as against 23.4% in Q2 FY18 and 24.4% in Q1 FY19. 

·The consolidated PAT, post minority interest, stood at Rs. 41.2 crores for the quarter as against Rs. 13.5 crores in Q2 FY18 and Rs. 26.7 crores in Q1 FY19.

Commenting on the performance, Ms. Sangeeta Prasad, Managing Director & Chief Executive Officer, Mahindra Lifespace Developers Ltd., said, “The two launches namely Roots in Mumbai and Lakewoods in Mahindra World City, Chennai have contributed significantly to our sales numbers. The signing of a definitive agreement for a land parcel of 0.84 msft at Bhiwandi Kalyan Road targeting the affordable housing segment is indeed encouraging.

We will continue our pursuit to drive momentum in our performance.”