• Presales (H1 FY25): INR1,415 crore, a 77-78% growth from INR800 crore in H1 FY24.

• Presales (Q2 FY25): INR397 crore, compared to INR455 crore in Q2 FY24.

• New Launch Sales Contribution: INR931 crore of the INR1,415 crore in H1 FY25.

• IC and I Revenue (H1 FY25): INR163 crore from leasing over 35 acres.

• IC and I Revenue (Q2 FY25): INR87 crore.

• Consolidated Operating Income (H1 FY25): INR196 crore, 70% higher than H1 FY24.

• Share of JV and Associates (H1 FY25): INR73 crore, up from INR25 crore in H1 FY24.

• Consolidated PAT (H1 FY25): Negative INR1 crore, improved from negative INR23 crore in H1 FY24.

• Consolidated Total Income (Q2 FY25): INR16 crore, compared to INR25.7 crore in Q2 FY24.

• Share of JV and Associates (Q2 FY25): INR36 crore, up from INR1 crore in Q2 FY24.

• Consolidated PAT (Q2 FY25): Loss of INR14 crore, compared to a loss of INR19 crore in Q2 FY24.

• Operating Cash Flow (Q2 FY25): INR261 crore, compared to INR118 crore in Q2 FY24.

• Operating Cash Flow (H1 FY25): INR548 crore, nearly double from INR249 crore in H1 FY24.

• Net Debt: INR477 crore, with a net debt to equity ratio of 0.26.

• Weighted Average Cost of Borrowing: 8.83%, down by 13 basis points from Q1 FY25.

• Warning! GuruFocus has detected 8 Warning Signs with BOM:532313.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mahindra Lifespace Developers Ltd (BOM:532313) reported a significant 77-78% growth in presales for H1 FY25, reaching INR 1,415 crore compared to INR 800 crore in the same period last year.

• The company has a robust pipeline of new launches planned for the latter part of the year, including projects in Bangalore, Pune, and Chennai, which are expected to boost sales.

• The industrial business segment showed strong performance, with INR 163 crore of revenue from leasing over 35 acres of land, indicating healthy demand in the industrial sector.

• Operating cash flow for H1 FY25 was nearly INR 550 crore, more than double the previous year's figure, reflecting strong collections and financial health.

• The company maintains a conservative net debt to equity ratio of 0.26, indicating prudent financial management and capacity for future growth investments.

Negative Points

• Quarter 2 FY25 presales were lower at INR 397 crore compared to INR 455 crore in the previous year, attributed to fewer launches and seasonal factors.

• The affordable housing segment is experiencing slower sales compared to mid-premium and premium segments, affected by high interest rates and economic factors.

• The Santa Cruz redevelopment project is facing delays due to complexities in aligning multiple societies, impacting the project's timeline.

• There is a high expectation from landowners in booming markets, which poses challenges in acquiring new land deals at reasonable prices.

• The company faces challenges in efficiently upstreaming cash from different entities, impacting the deployment of available cash reserves.