The Phoenix Mills - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 770; MCap: Rs. 13.239 crore)

Phoenix Mills (PML) reported a mixed set of performance. While consumption at retail mall hit 100% of Q4FY20 driving retail revenues recovery, the margins were lower due to higher other expenses.

Q4FY21 Earnings Summary

- Reported revenues de-grew by ~3.4% YoY to Rs. 385.9 crore, (I-direct estimate Rs. 393.1 crore), on account of weak traction in hospitality segment. On the core portfolio (commercial + retail + hospitality) front, revenues declined by ~14.7% YoY to Rs. 329.5 crore. The retail revenues declined by ~1.2% YoY at Rs. 267.2 crore, while hospitality revenues declined by ~65.7% YoY at Rs. 29.7 crore. Commercial remained resilient segment which witnessed revenues growth of ~12% YoY at Rs. 32.6 crore. The revenues recognition of Rs. 56.3 crore in residential segment, up 3.3x YoY

- Reported EBITDA margins were down 620 bps YoY to 44.9% and were lower than our expectation of 54.7%, largely due to higher other expenses. EBITDA at Rs. 173.4 crore, was down 15.1% YoY

- The company reported a PAT of Rs. 65.5 crore, up 40.3%, aided by higher other income

- Debt stood at Rs. 4486.4 crore, up by ~Rs. 75 crore QoQ

The near term challenges on retail and hospitality assets is likely to be there for the company due to second wave, albeit reopening of economy in full steam by H2FY22, will drive retail recovery as seen in Q4. PML remains a quasi-play on India's consumption story, given the quality of assets, healthy balance sheet (boosted by QIP of ~Rs. 1091 crore in Q2) & strategic expansion plans. We will review our estimates and come out with a detailed report post the conference call (scheduled on Saturday, May 29, 2021).

Shares of The Phoenix Mills Ltd was last trading in BSE at Rs.766.05 as compared to the previous close of Rs. 770.2. The total number of shares traded during the day was 6102 in over 709 trades.

The stock hit an intraday high of Rs. 781.95 and intraday low of 756.45. The net turnover during the day was Rs. 4719505.

Source : Equity Bulls

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