Mahindra Lifespace Developers (532313) Q2 24/25 earnings summary

Executive summary

• Strong market momentum in residential and industrial segments, with robust absorption and launch activity in Mumbai, Pune, and Bangalore, despite some slowdown in NCR and Hyderabad.

• H1 FY25 residential GDV reached INR 1,415 crore, up 77%-78% year-over-year, and industrial leasing revenue was INR 163 crore from 35 acres in Jaipur and Chennai.

• Strategic focus on scaling business 5X to Rs 8,000-10,000 crore sales by 2028, supported by a robust project pipeline and funding plans.

• Recognized for sustainability, innovation, and customer experience, with multiple industry awards and net zero projects.

• Unaudited consolidated and standalone financial results for Q2 and H1 FY25 were approved on October 25, 2024, following a limited review by statutory auditors.

Financial highlights

• H1 FY25 consolidated operating income was INR 196 crore, up 70% year-over-year; Q2 FY25 consolidated total income was INR 16 crore, down from INR 25.7 crore in Q2 FY24.

• H1 FY25 residential GDV reached Rs 1,415 crore, up from Rs 800 crore in H1 FY24; Q2 FY25 at Rs 397 crore.

• H1 FY25 leasing revenue at Rs 163 crore, with Q2 FY25 at Rs 87 crore.

• H1 FY25 PAT improved to a loss of INR 1 crore from a loss of INR 23 crore in H1 FY24; consolidated net loss after tax for Q2 was ₹1,401 lakhs and for H1 was ₹127 lakhs.

• Operating cash flow/free cash flow for H1 FY25 was INR 548 crore/Rs 548 crore, more than double the previous year.

Outlook and guidance

• Multiple major launches planned for H2, including Vista (INR 1,200 crore), Codename Navy (INR 1,000 crore), Crown Phase II (INR 800 crore), Pink in Jaipur (INR 200 crore), and Zen 2 in Bangalore (INR 250-300 crore).

• Targeting Rs 8,000-10,000 crore in sales by 2028, with a cumulative GDV of Rs 45,000 crore and planned funding of Rs 7,000 crore (50% internal accruals).

• High visibility on residential growth with a total potential sales pipeline of Rs 22,650 crore.

• Focus remains on mid-premium and premium residential segments; affordable segment de-emphasized due to slower growth.

• Management notes that quarterly/periodic results are not representative of full-year operations due to the nature of the real estate business.