- 25 May 2022
- ICICIdirect Research
PHOENIX POSTS STRONG RECOVERY ACROSS SEGMENTS
PHOENIXLTD - 1477 Change: -38.45 (-2.54 %)News:Phoenix Mills (PML) reported a strong performance with robust retail and hospitality revenues recovery. Reported revenues grew by ~16.6% YoY to Rs 495 crore, with growth driven by retail portfolio. On the core portfolio (commercial + retail + hospitality) front, revenues grew by ~32.8% YoY to Rs 438 crore. The retail revenues grew by ~25.9% YoY at Rs 336.9 crore, while hospitality revenues were up ~95.6% YoY at Rs 58.1 crore, albeit lower QoQ due to Omicron impact. We note that Retail Rental at Rs 250.6 crore, are at ~100% of Q4FY19 (Pre-Covid level). Consumption in Q4FY22 (incl. Phoenix Palassio) was ~103% of Q4FY19 (pre-Covid), and ~92% on like to like basis. Commercial remained resilient segment, which witnessed revenues growth of ~32.2% YoY at Rs 43.1 crore. Reported EBITDA margins were up 371 bps YoY to 48.7%, with operating leverage kicking in. The company reported a PAT of Rs 104.8 crore, up 60% YoY.
Views: The retail growth recovery has been quicker than anticipated and Omicron hit has been relatively lesser. PML remains a quasi-play on India’s consumption story, given the quality of assets, healthy balance sheet & strategic expansion plans.
Impact: Positive