- 09 Nov 2022
- ICICIdirect Research
PHOENIX MILLS POSTS STRONG BEAT DRIVEN BY RETAIL SEGMENT
PHOENIXLTD - 1477 Change: -38.45 (-2.54 %)News:
Reported revenues grew ~75.3% YoY, 13.4% to Rs 651 crore with growth driven by retail portfolio. On the core portfolio (commercial + retail + hospitality) front, revenues grew ~91% YoY to Rs 593 crore. Retail revenues grew ~95.4% YoY to Rs 456.3 crore while hospitality revenues were up 171% YoY at Rs 93.4 crore. We note that retail rental at Rs 313 crore, was at ~121% of Q2FY20 (pre-Covid level) and ~110% on a like-to-like basis. Consumption in Q2FY23 was at Rs 2198.6 crore (including Phoenix Palassio) was ~130% of Q2FY20 (pre-Covid), and ~118% on a like-to-like basis. Reported EBITDA margins were up 223 bps QoQ to 58.5%, with operating leverage kicking in along with lower other costs. The company reported PAT of Rs 185.8 crore, up 212.4% YoY and ~14% QoQ (on an adjusted basis)
View:
The retail growth recovery has been faster and higher than anticipated. Even October 2022 consumption has been robust and trending higher at 133% of pre-Covid (up 118% of pre-Covid on an adjusted basis). PML remains a quasi-play on India’s consumption story, given the quality of assets, healthy balance sheet & strategic expansion plans
Impact:
Positive