Phoenix Mills: 4QFY13 standalone EBITDA was in line with est. at INR469m - Motilal Oswal

Phoenix Mills' 4QFY13 standalone EBITDA was in line with est. at INR469m (+32%YoY, +1% QoQ). Revenue stood at INR722m (+20%YoY, +4%QoQ, v/s est.of INR706m); EBITDA margin down by 2pp QoQ to 66%. PAT stood at INR361m (v/s est of INR333m). FY13 consolidated revenue stood at INR4.7b (v/s est. of INR4.5b), EBITDA of INR2.6b (in-line) and PAT of INR842m (v/s est of INR1b).

High street Phoenix (HSP) rentals grew +5%QoQ/+23%YoY to INR653m in 4QFY13, led by +17%YoY growth in consumption. Average rentals grew +4%QoQ and +17% YoY to INR212/sf/m in 4QFY13. FY13 rental at HSP stood at INR2.4b v/s our estimate of INR2.32b in FY13.

During 4QFY13, PHNX has witnessed moderation in ramp up progress across its market city retails, barring Chennai. Chennai mall has shown strong rampup progress as expected due to its very attractive locational advantage. In terms of trading density, the mall has already surpassed other three market city malls, which got operational almost 9-12 months ahead of it.

After a strong 1HFY13, the monetization pace in phase IIs of the market city projects moderates in 3QFY13 and the trend continued in 4Q as well. PHNX plans to launch 3-4msf of residential projects over next 12 months including Bangalore East (1msf), Phase II of Bangalore West (2msf), Pune (0.3msf) and last phase of Chennai (0.4msf).

Due to steady customer collections and negative working capital status in One Bangalore West project, the SPV Palladium Constructions has bought back INR781m worth of share, leading to an inflow of INR547m to PHNX in 4QFY13 (owing to its 70% stake in SPV).

The board has approved stake purchase of INR1.4b in various market city projects over next 24 months. This comprises: (1)Purchase of Edelweiss Property Fund portfolio in PML group projects for INR690m; (2) Purchase of IL&FS 24% stake in Vamona Developers (Phoenix Market city, Pune) for INR716m.

With these, PHNX would have overall capital commitment of INR1.9b for raising stakes in various SPVs over FY14-15.

Consolidated net debt stood at INR17.7b (net DER 1x), up by INR3.4b QoQ on account of consolidation of Bangalore East SPV in 4Q.

Source : Equity Bulls

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