Mahindra Lifespace spurts after turnaround Q2 numbers

Mahindra Lifespace Developers rose 6.48% to Rs 281.90 after the company reported consolidated net profit of Rs 6.52 crore in Q2 September 2021 as against net loss of Rs 13.33 crore in Q2 September 2020.

Consolidated net sales surged 92.46% to Rs 59.24 crore in Q2 September 2021 over Q2 September 2020. Pre-tax profit stood at Rs 23.93 crore in Q2 September 2021 compared with pre-tax loss of Rs 11.71 crore in Q2 September 2020.

Commenting on the performance, Arvind Subramanian, managing director & chief executive officer, Mahindra Lifespace Developers, said: "We have seen encouraging demand growth in both our residential and industrial parks businesses in Q2 FY22. Further, project execution has gained pace. The response to the launch of our first Mahindra Happinest project at Mahindra World City, Chennai has been very heartening. More than 80% of launched inventory in the project has been booked, an endorsement of our product-led strategy. We have multiple launches lined up in H2 FY22 across our priority markets and are hoping for a strong operational performance through the second half of the year. With gradual easing of travel restrictions, conversion of enquiries is likely to pick up pace in our industrial parks business."

During the quarter, the company achieved sales of Rs 303 crore (0.39 msft) in residential business. It launched a project at MWC Chennai with area of 0.20 msft. The firm completed 0.41 msft at Luminare, Gurgaon. The company attained collections of Rs 171 crore in residential business and leased 27.7 acres across MWC Jaipur and MWC Chennai.

The company's consolidated cost of debt stood at 6.7% while standalone cost of debt stood at 5.7%.

Mahindra Lifespace Developers' development footprint spans 27.4 million sq. ft. (2.5 million sq. m.) of completed, ongoing and forthcoming residential projects across seven Indian cities; and over 5000 acres of ongoing and forthcoming projects under development/management at its integrated developments/industrial clusters across four locations. Mahindra Lifespaces' development portfolio comprises premium residential projects; value homes under the 'Mahindra Happinest' brand; and integrated cities and industrial clusters under the 'Mahindra World City' and 'Origins by Mahindra' brands respectively.

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