Earnings Outlook
Phoenix Mills' Jan-Mar net sales seen down 10% on year
This story was originally published at 20:17 IST on 28 April 2025
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By Ishaan Sharma
Mumbai - Homes-to malls developer The Phoenix Mills Ltd. is expected to report weak earnings for the March quarter, with both net sales and net profit seen reporting a double-digit on-year decline. However, sequentially, the company's net profit is expected to rise marginally, while its net sales is expected to see a double-digit rise, as supply challenges had somewhat eased out in the last quarter.
Earnings are expected to be weak as India's housing market is expected to report a 23% decline in sales and a 34% drop in new supply across the top nine cities in Jan-Mar, according to a report by Prop Equity. This downturn is viewed as a market correction after years of rapid growth, driven by rising prices and growing investor caution.
The company is expected to report a consolidated net profit of INR 2.67 billion for the latest quarter, down 18.4% on year, according to the average of estimates from five brokerages. Amongst the five, Motilal Oswal Financial Services Ltd. has projected the highest net profit of INR 3.61 billion and Kotak Institutional Equities has estimated the lowest net profit of INR 2.34 billion. Sequentially, the company's consolidated net profit is expected to rise 0.8%.
Phoenix mills is expected to report a net sales of INR 11.73 billion for the latest quarter, down 10.2% from the year-ago quarter, according to the average of five estimates. However, sequentially, the company's net sales are expected to rise 20.3%. Nuvama Wealth Management gave the highest estimate of INR 13.25 billion, while Kotak Institutional Equities gave the lowest estimate of INR 10.06 billion.
Kotak Institutional Equities has factored in a net sales of around INR 10.06 billion for the reporting quarter on the back of 23% on-year growth in retail consumption. However, it expects the net sales to decline on year due to an uneven residential revenue in the year-ago quarter.
Phoenix Mill's earnings before interest, tax, depreciation, and amortisation, or EBITDA, is estimated at INR 6.23 billion, an average of the five estimates showed. The estimates for EBITDA range from INR 5.43 billion-INR 7.68 billion for Jan-Mar. Kotak Institutional Equities expects an EBITDA margin of 54% in Jan-Mar, while Motilal Oswal Financial Services expects the EBITDA margin to be 64%.
The company will disclose its March quarter earnings on Thursday. On Monday, shares of the company settled 0.4% higher at INR 1,634.80 on the National Stock Exchange.
Following are the Jan-March earnings estimates for The Phoenix Mills from five brokerages in descending order by the estimate of net profit in INR million:
Brokerage Firm | Net Sales | Net Profit | EBITDA |
Motilal Oswal Financial Services Ltd | 12,084.00 | 3,610.00 | 7,680.00 |
HDFC Securities Ltd | 10,743.00 | 2,509.00 | 6,040.00 |
JM Financial Institutional Securities Pvt Ltd | 12,511.00 | 2,447.00 | 6,406.00 |
Nuvama Wealth Management Ltd | 13,252.00 | 2,436.00 | 5,609.00 |
Kotak Institutional Equities | 10,055.00 | 2,335.00 | 5,425.00 |
Average | 11,729.00 | 2,667.40 | 6,232.00 |
End
Edited by Tanima Banerjee
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