- 28 Apr 2022
- ICICIdirect Research
Mahindra Lifespace reports decent operating performance
MAHLIFE - 569 Change: -10.95 (-1.89 %)News: Residential sales volume, value was up ~25%, ~31% QoQ at 0.4 msf and Rs 328 crore, respectively. Collections at Rs308 crore were up ~20.8% YoY. The YoY decline in Sales value (by ~5%) in Q4 is owing to healthy base of launches in Q4FY21. For FY22, sales volume, value was up ~20%, ~48% YoY at 1.28 msf and Rs 1028 crore, respectively. On financial front, revenues were up by 1.9x YoY at Rs 161.8 crore on a benign base. PAT at Rs 137.7 crore, was aided by one time reversal of impairment of a subsidiary of Rs 96.8 crore. On adjusted basis, PAT at Rs 41 crore was led by profitability in industrial cluster segment (part of profit from associates/JV) wherein profit was ~Rs 24 crore, while residential segment had reported loss of ~Rs 16 crore
Views: The change in management and execution has shown signs of transformation. MLDL has announced three land transactions for Pimpri (Pune), Dahisar and Kandivali (MMR) locations having total GDV of Rs 3800 crore at in FY22, The focus on expanding its overall scale of operation and a comfortable balance sheet, lends comfort. The new land purchases could drive scalability of its residential business, going ahead
Impact: Positive