Views on Mahindra Lifespaces Developers 3QFY2014 result - Angel Broking

Views of Mr. Viral Shah (Sr. Research Analyst – Infrastructure, Angel Broking) on Mahindra Lifespaces Developers 3QFY2014 result:

"For 3QFY2014, Mahindra Lifespace Developers (MLIFE) reported mixed set of numbers which were in line with the consensus estimates on the profitability front. MLIFE's standalone revenue reported a decline of 6.3% YOY to Rs. 58cr in 3QFY2014; which was lower than consensus estimate of Rs. 93cr. Standalone EBITDA decreased by 75% YOY to Rs. 2cr, owing to lower-than-expected revenue recognition and increase in staff cost (up 17% yoy) during the quarter. On earnings front, the company reported PAT of Rs. 17cr (consensus estimate was Rs. 16.4cr); indicating a growth of 22.9% YOY. This was mainly on account of (a) higher other income and (b) reassessment of effective tax rate during the quarter. On a consolidated level, MLIFE reported revenue of Rs. 143.7cr and PAT of Rs. 29.3cr, suggesting a profit for its subsidiaries at net level. During the quarter, the company has launch three projects- (a) New residential project Nova at MWC, Chennai, (b) Phase IV Ashvita, Hyderabad and (c) Phase IIC at Bloomdale, Nagpur. The company has also signed three new customers at Mahindra World City. Currently, the target price and rating is under review. We shall revise our estimates post earnings conference call with the management schedule today at 4.00 pm."

Source : Equity Bulls

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