- 04 Nov 2022
- ICICIdirect Research
MAHINDRA LIFESPACE REPORTS HEALTHY SALES VOLUME GROWTH
MAHLIFE - 513 Change: -2.20 (-0.43 %)News:
Residential sales volume, value was up by ~21%, ~32% YoY at 0.47 msf and Rs 399 crore, respectively, led by offtake from existing projects and new launches of ~0.61 million sq feet during the quarter across Pune and Chennai. Collections at Rs 286 crore were up ~67% YoY. On the financial front, revenues were up 17.8% YoY at Rs 69.8 crore. The company reported a loss of Rs 7.7 crore. Segment wise, industrial cluster segment (part of profit from associates/JV) profit was ~Rs 27 crore while residential segment reported a loss of ~Rs 35 crore
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The company has, during the quarter, entered into an agreement with Actis (a leading global investor in sustainable infrastructure) to establish a joint venture (JV) platform for developing industrial and logistics real estate facilities across India. The total investment in the business over the initial years, including debt, is estimated to be Rs 2,200 crore. Actis will own a majority stake, and Mahindra Lifespaces will have a significant minority (26-40%). Further details on the same are awaited. The focus on expanding its overall scale of operation and a comfortable balance sheet, lends comfort. Our constructive view is led by its consistent delivery of the promise of new land addition, which could drive scalability of its residential business, going ahead
Impact:
Positive