Real estate player Mahindra Lifespace reports marginal decline in profit amid growth plans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Mahindra Lifespace Developers Ltd, the real estate and infrastructure arm of the Mahindra Group, announced a marginal decline in its consolidated net profit for the last fiscal year. The company reported a net profit of ₹97.89 crore, down from ₹101.43 crore in the previous fiscal year. This dip was attributed to lower income, with total income falling from ₹659.56 crore to ₹279.12 crore.

In a regulatory filing, Mahindra Lifespace revealed that its consolidated net profit for the fourth quarter of the fiscal year saw a rise to ₹71.15 crore, compared to ₹55 lakh in the year-ago period. However, total income for the quarter dropped to ₹54.60 crore from ₹270.26 crore in the previous year.

Despite the challenges posed by the decrease in income, Mahindra Lifespace remains optimistic about its growth prospects. Amit Kumar Sinha, MD & CEO of Mahindra Lifespace, stated in an interaction with CNBC-TV18, “Q4FY24 has been one of our best quarters in terms of pre-sales. We expect growth momentum to continue due to healthy demand.”

Sinha highlighted the success of their recent project launches, particularly mentioning Mahindra Vista in Kandivali, Mumbai, which was sold out within days. He noted that the market demand remains strong in Mumbai, Pune, and Bengaluru, where the company operates. In the last 6-8 weeks alone, Mahindra Lifespace launched one project each in Pune and Bengaluru, both achieving impressive sales figures.

Looking ahead, Mahindra Lifespace plans to shift its focus from the affordable segment towards the premium sector. Sinha explained, “Over the last two years, we have focused on mid-premium and premium segments in line with our brand promise and target customer segments.” He emphasised that rising per capita income and land prices make premium housing a more viable option for the company.

Sinha outlined the company’s future project plans, stating that around 80% of their upcoming projects will be premium, while the remaining 20% will be affordable. However, he acknowledged that expansion plans will require additional funds. “For growth, we will need capital, and given Mahindra Lifespaces has been designated as a growth jump at the Mahindra corporate level, we expect support from the group,” Sinha said.

While discussing financing options, Sinha expressed a preference for equity. “Our preference is to get equity because it aligns very well with the nature of the industry,” he stated.

Also Read: ICICI Bank becomes the second lender to cross ₹8 lakh crore in market capitalisation

Shares of Mahindra Lifespace Developers settled 4.57% lower at ₹635.50 apiece on the NSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow