The Phoenix Mills - Q1FY21 First Cut - ICICI Securities

(CMP - Rs. 595; MCap: Rs. 9,136 crore)

Phoenix Mills (PML) reported a washout quarter as expected, owing to the impact of Covid-19 which led to decline in its retail and hospitality assets revenues and profitability coupled with zero revenues in the residential segment.

Q1FY21 Earnings Summary

- Reported revenues de-grew by ~78% YoY to Rs. 134.7 crore, (I-direct estimate Rs. 174.3 crore), on account of weak traction in hospitality and malls segment due to Covid -19 as well as zero revenues recognition in residential segment, wherein Rs. 207.1 crore was recognised in Q1FY20. On the core portfolio (commercial + retail + hospitality) front, revenues declined by ~67% YoY to Rs. 134.7 crore. The retail revenues declined by ~70% YoY (vs. expectations of 56% decline), while hospitality revenues declined by ~90% YoY. Commercial was the only resilient segment which witnessed revenues growth of ~5% YoY

- Reported EBITDA margins were up 460 bps YoY to 52.2% and were much higher than our expectation of 40%, largely on account of lower employee and other expenses. EBITDA at Rs. 70.3 crore, was down 76% YoY

- The company reported a loss Rs. 42.4 (our estimate: loss of Rs. 31.4 crore) on account of weak operating performance

- Debt at Rs. 4749 crore increased by ~Rs. 176 crore QoQ, understandably so, owing to lower cash generation as well as moratorium impact

The near term challenges on retail and hospitality assets is likely to be there for the company. We seek further clarity on the outlook of malls and the hospitality segment from the management. Recent encouraging development is opening of malls in Mumbai, from August 5, 2020, a key market for the company, which should bring back some cash flow generation. We will review our estimates and come out with a detailed report post the conference call.

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.596 as compared to the previous close of Rs. 583.5. The total number of shares traded during the day was 4578 in over 456 trades.

The stock hit an intraday high of Rs. 604 and intraday low of 579.55. The net turnover during the day was Rs. 2713144.

Source : Equity Bulls

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