The Phoenix Mills Limited Q1 FY23 Result Updates.
Strong consumption growth; Net profit at Rs.718 crores.

The Phoenix Mills reported net profit of Rs 718 crores net profit in the June quarter against loss of Rs 26.2 crore in June 2021.
Income from operations for the quarter increased by 181% YoY to Rs 574.4 crore and operating profit jumped by 324% YoY to Rs 322.9 crore. The company’s retail consumption soared by 123% during the quarter to Rs 2,190.5 crores, which is at 123% of the pre-Covid period of first quarter of 2019-20. Total consumption for the quarter rose 133% to Rs 792 crore.
Retail collections is at Rs. 5,25.3 crores for June 2022 compared to Rs. 4,76.2 crores in the previous quarter. Year-to-date Gross consumption stood at is Rs. 29,82.4 crores, at 126% of April to July 2019.
Q1 FY23 Rental Income at 124% of Q1 FY20 (pre-Covid quarter) and Retail EBITDA at 127% of Q1 FY20 (pre-Covid quarter). The incremental Revenue Share contributed 13% to Total Rental Income vs. 10% in Q1 FY20. Total Office Income stood at Rs. 40.3 crores and total EBITDA stood at Rs. 23.5 crores.
Sales trajectory has seen good improvement driven by strong demand and faster conversions. Sales stands at Rs. 70.4 crores in Q1 FY23 which is the strongest Q1 in last 5 years [Q1 FY20: sales of Rs. 6.6 crores] . Further, closed sales of Rs. 30 crores in July and August, taking year to date residential sales to Rs. 1,00 crores . Collections in Q1FY23 were Rs. 53.6 crores .

The Hospitality segment witnessed robust all-round performance.

The Hospitality segment witnessed strong all-round performance in terms of room occupancy, average room rates, demand for social and corporate events and bars and restaurants. Average occupancy during the quarter for flagship property St. Regis was at 85%, with Average room rate (ARR) at Rs 11,997. Revenue for the quarter is 26% ahead of revenue for the pre-Covid comparable period of the first quarter of 2019-20.
The operating performance at the St Regis, Mumbai has surpassed most parameters in the past four months, led by resumption of foreign travel, domestic corporate travel, social events and staycations.
In the residential segment, overall sales stood at Rs 70.4 crore during the quarter and over Rs 100 crore as on year to date.
During the quarter, the company generated operating free cash flow of Rs 254.3 crores.
In the commercial segment, the company witnessed strong leasing traction during the quarter with gross leasing of 1.9 lakh sq ft. Income from office segment rose up 10% from a year ago to Rs 40.3 crore led by rental contribution from Fountainhead Tower 2.
Strong leasing traction continues during Q1 FY23. The company achieved gross leasing of 1.9 lakh sf during current quarter, of which 1.3 lakh sf is new leasing and 0.6 lakh sf is renewal leasing.

The shares of The Phoenix Mills Limited are trading at Rs. 1362, up by 3.78%.

Valuations:

The return on equity (ROE) is 4.14% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 51.3. The return on capital employed (ROCE) for the company is 6.38%. The price to book value The Phoenix Mills Limited is 3.65. The EV/EBITDA is 25.9. EPS for the quarter is Rs. 55.2.
The company’s consolidated net debt stood at Rs 2,009 crore, while the group’s liquidity as on June end was Rs 2,177.2 crore, excluding funds available in revolving credit facilities.