- 01 Aug 2024
- ICICI Securities
PHOENIX MILLS: MUTED LIKE TO LIKE RENTAL GROWTH
PHOENIXLTD - 1813 Change: 21.00 (1.17 %)News: The Phoenix Mills (PML) total consumption during Q1 stood at ₹ 3214 crore, up 25% YoY, largely boosted by ramp up in new malls . Excl. new malls, like to like consumption was 7% YoY, well below company guidance of double-digit growth. Retail Rental Income was at ~ ₹ 487 crore, up 31%, with like-to-like growth of ~8% YoY. Commercial segment saw gross leasing (including renewals of 1.5 lakh square feet in Q1). On financial front, the consolidated revenue from operations stood at ₹ 904 crore, up 12% YoY. The operating EBITDA stood at ₹ 531 crore, up 8% YoY with margins of 59% down 200 bps YoY. Adj. PAT stood at ₹295 crore, up 10% YoY.
Views: The performance is largely on expected lines, albeit like to like growth is well below company’s guidance of double-digit growth. On a long-term basis, PML continues to be a key beneficiary of healthy consumption recovery at malls and remains a quasi-play on India’s consumption story, given the quality of assets, healthy balance sheet & strategic expansion plans. Like to like growth ahead remain key monitorable.
Impact: Negative