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Jan 24, 2012, 04.57 PM IST
CRISIL Research has come out with its report on Phoenix Mills. The research firm has maintained the fundamental grade of 3/5 to the company in its January 23, 2012 report.
CRISIL Research has come out with its report on Phoenix Mills . The research firm has maintained the fundamental grade of 3/5 to the company in its January 23, 2012 report.
The Phoenix Mills’ (Phoenix’s) Q3FY12 standalone results were below CRISIL Research’s expectations but earnings were in line due to higher-thanexpected margins. Revenue growth was driven by higher footfalls in High Street Phoenix (HSP) mall. Increase in occupancy levels and higher average lease rentals drove EBITDA margin and earnings growth. We continue to remain positive on Phoenix given the steady cash flow from HSP mall and encouraging initial response to the three market city projects launched in the recent past. We may revisit our earnings estimates post interaction with the management. We maintain the fundamental grade of 3/5.
Q3FY12 standalone result analysis
• EBITDA margin improved by 131 bps y-o-y to ~74% as ~50 bps increase in employee costs was offset by ~180 bps decline in other expenses. On a q-o-q basis, margin grew 358 bps.
• PAT grew 13.2% y-o-y (12.6% q-o-q) to Rs 269 mn. Interest expenses increased significantly from Rs 19 mn in Q3FY11 to Rs 57 mn in Q3FY11 due to interest outgo on lease rental discounting (LRD) loan of ~Rs 2.3 bn taken in the previous quarter. This was offset by 25% y-o-y growth in other income to Rs 113 as LRD proceeds was advanced to its SPVs for short-term financing requirements. EPS was Rs 1.9 vs. Rs 1.6 in Q3FY11.
Valuations: Current market price has upside
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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