Phoenix Mills falls 3% after Q1 margin contacts; announces 1:1 bonus issue

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Phoenix Mills shares fall: Shares of Phoenix Mills fell as much as 2.53 per cent to hit an intraday low of Rs 3,501 per share on Thursday, August 01, 2024. 

The fall in the share price came after the company saw its margin squeeze in the June quarter of financial year 2025 (Q1FY25).

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, rose 7.9 per cent on Y-o-Y basis to Rs 531 crore in the June quarter of current fiscal year, from Rs 492.3 crore in the same quarter a year ago.

However, its margin squeezed 200 basis points (bps) to 58.7 per cent in Q1FY25, from 60.7 per cent in Q1FY24. 

Overall, Phoenix Mills’ profit fell 3.3 per cent on a year-on-year (Y-o-Y) basis to Rs 232.5 crore in the June quarter of financial year 2025 (Q1FY25), from Rs 240.5 crore in the June quarter of financial year 2024 (Q1FY24).

The revenue from operations, or topline, surged 11.5 per cent to Rs 904.1 crore in the June quarter of FY25, from Rs 810.6 crore in the June quarter of FY24. 

Furthermore, The board of directors have approved the issuance of Bonus Shares in the ratio of 1:1, which means 1 equity share of face value of Rs 2 each will be provided for every 1 existing equity share of face value of Rs 2 each held by the shareholders of the company as on Record Date, subject to the approval of the members.

Phoenix Mills Ltd, founded by the Ruia family on January 27, 1905, originally began as a textile manufacturing company. Its first operations were established on 17.3 acres of land in Lower Parel, Mumbai, focusing on cotton textile production. 

Today, Phoenix Mills has evolved into a major player in real estate development. 

The company boasts nine operational retail properties with a total leasable area of approximately 6.9 million square feet across major cities including Mumbai, Bangalore, Chennai, Pune, Lucknow, Agra, and Bareilly. 

Its diverse portfolio includes over 19 million square feet of retail, residential, commercial, and hospitality assets, spread across more than 100 acres of land.

The market capitalisation of the company is Rs 63,134.77 crore, according to Bombay Stock Exchange (BSE). The company falls under BSE 500 category.

At 10:55 AM, shares of Phoenix Mills were trading 1.64 per cent lower at Rs 3,533 per share. In comparison, BSE Sensex was trading 0.13 per cent higher at 81,844.22 levels.