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Informist, Thursday, Oct. 24, 2024

By Apratim Sarkar

MUMBAI - Homes-to-malls developer The Phoenix Mills Ltd.'s revenue is expected to increase year-on-year in Jul-Sept, driven by the commissioning of new malls. The company's revenue is also expected to improve sequentially owing to recovery in consumption at malls, according to analysts.

According to an average of five estimates from brokerage firms, the Mumbai-based company is expected to earn a consolidated net profit of INR 2.78 billion, up almost 10% on year and up 19.4% sequentially. The average estimated revenue provided by five brokerage firms was INR 9.46 billion, up 8.2% on year and up 4.7% on quarter. For the September quarter, the average expected earnings before interest, tax, depreciation and amortisation of the five brokerage firms was INR 5.51 billion, up 7.2% on year.

The company's revenue is expected to increase to INR 9.2 bln in Jul-Sept due to commissioning of new malls in Pune and Bengaluru, Kotak Institutional Equities said. Sequential improvement in revenue is also expected, backed by a recovery in consumption at malls, the brokerage said. The estimated EBITDA margin of the company for the September quarter is 59%, according to Kotak Equities. The revenue of Phoenix Mills is expected at INR 10.28 billion backed by improved occupancy in the new malls launched, Nuvama Wealth Management said.

Phoenix Mills Jul-Sept retailer sales were INR 32.9 billion, up 25% on year. The company's retailer sales for Apr-Sept were INR 65.1 billion, up 25% from the year-ago period. The growth in retailer sales was driven by a strong performance by Phoenix Palassio in Lucknow and Phoenix MarketCity in Mumbai and by a ramp-up in its newly launched malls, the company had said earlier in a press release.

In the residential segment, Phoenix Mills achieved gross sales of INR 270 million in Jul-Sept. The gross sales in the company's residential segment for Apr-Sept were INR 780 million, the company had earlier said in a press release. 

Due to monsoon and muted urban consumption trends, the expected retail mall consumption of Phoenix Mills in the September quarter is estimated to grow 19.3% on year to INR 31.5 billion, according to Antique Stock Broking. The retail sector's consumption in Jul-Sept will remain steady, and will see single digit growth on-year with urban consumption being muted during the quarter and the hospitality sector may see flat occupancy, the brokerage said.

Kotak Equities expects companies in the hospitality sector to report sequentially better earnings following a weak June quarter impacted by elections and a severe heat wave. The hospitality sector has seen better demand in the September quarter and the accounting rate of return on year is likely to be around high-single digits, Nuvama said.

Nuvama gave the highest estimate for Phoenix Mills net profit and revenue for the September quarter at INR 10.28 billion and INR 3.36 billion respectively. Antique Stock gave the lowest estimate for the company's revenue at INR 9 billion and Kotak Equities had the lowest estimate for the company's net profit at INR 2.38 billion. Phoenix Mills is set to announce its September quarter earnings on Friday.

Thursday, shares of Phoenix Mills closed at INR 1,523.60 on the National Stock Exchange, down 2.7%.

Following are the Jul-Sept earnings estimates for The Phoenix Mills based on reports compiled by Informist from five brokerage firms.

End

Edited by Ashish Shirke

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