The Phoenix Mills - Q4FY20 First Cut - ICICI Securities

(CMP - Rs. 585; MCap: Rs. 8,982 crore)

Phoenix Mills (PML) reported weak operating numbers as expected, owing to the impact of Covid-19 which led to decline in its retail and hospitality assets revenues and profitability.

Q4FY20 Earnings Summary

- Reported revenues de-grew by ~45% YoY to Rs. 399.2 crore, (I-direct estimate Rs. 404 crore), on account of weaker traction in hospitality and malls segment due to Covid -19. The majority of decline was also attributable to lower revenues recognition in residential segment, wherein Rs. 13 crore recognised in Q4FY20E vs. Rs. 307.2 crore recognised in Q4FY19. On the core portfolio (commercial + retail + hospitality) front, revenues declined by 7.2% YoY to Rs. 386.2 crore. The retail revenues decline by ~7% YoY, while hospitality revenues declines by ~14% YoY

- Reported EBITDA margins was down 95 bps YoY to 51.2% and were tad higher than our expectation of 50%. EBITDA at Rs. 204.3 crore, was down 45.8% YoY

- The reported PAT declined 80% YoY to Rs. 46.7 crore (our estimate: Rs. 50.8 crore) on account of weak operating performance

- On the positive side, debt at Rs. 4573.1 crore was down by ~Rs. 67 crore QoQ with operational portfolio debt reduction of Rs. 159 crore QoQ

- The company's board has approved raising of up to Rs. 1200 crore through Rights Issue, Preferential Issue, Qualified Institutions Placement, Follow-on Public Offer, etc., or through a combination thereof

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. 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.565.9 as compared to the previous close of Rs. 584.3. The total number of shares traded during the day was 4282 in over 825 trades.

The stock hit an intraday high of Rs. 589.2 and intraday low of 562. The net turnover during the day was Rs. 2452451.

Source : Equity Bulls

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