Mahindra Lifespace Developers reported a net-loss of INR 13.99 crore in Q2-FY25, a significant improvement from the INR 29.76 crore loss in Q2-FY24. Consolidated-income decreased by 37.9% to INR 15.96 crore. Despite a muted quarter, the company achieved INR 397 crore in pre-sales and INR 459 crore in collections. A strategic agreement was reached for a 26% equity-stake in Ample Parks MMR, with an INR 20.05 crore investment over three years. H1-FY25 saw strong performance with INR 1,415 crore in pre-sales, 77% growth, and land-leasing of 34.9 acres for INR 163.2 crore.
Mahindra Lifespace Developers (MLDL), a prominent real estate and infrastructure arm of the Mahindra Group, reported a consolidated net loss of INR 13.99 crore in Q2 FY25, a notable improvement from the INR 29.76 crore loss recorded in the same quarter of the previous fiscal year. The company's net consolidated total income for Q2 FY25 stood at INR 15.96 crore, marking a 37.90% decline from the INR 25.70 crore reported in Q2 FY24.
Amit Kumar Sinha, MLDL's managing director and CEO, highlighted the company's strong performance in the first half of FY25, driven by project launches in prior months. He noted that while Q2 was somewhat subdued, the broader real estate industry is experiencing positive trends, particularly in the mid-premium and premium segments. As of September 30, 2024, MLDL's net worth was INR 1,831.99 crore, with a debt-equity ratio of 0.51, a current liability ratio of 0.82, total debt-to-assets ratio of 0.17, and operating and net profit margins of (626.94%) and (184.10%), respectively.
In Q2 FY25, MLDL achieved pre-sales of INR 397 crore and collections totaling INR 459 crore in its residential business. For the broader H1 FY25, the company recorded INR 1,415 crore in pre-sales, reflecting 77% year-on-year growth with a saleable area of 1.70 million square feet and a RERA carpet area of 1.29 million square feet. Additionally, land leasing in the Integrated Cities and Industrial Clusters (IC&IC) segment covered 34.9 acres, generating INR 163.2 crore in revenue. Of this, Q2 FY25 land leasing accounted for 16.1 acres, valued at INR 87.1 crore.
The company also expanded its footprint by entering into a Securities Purchase Agreement (SPA) with existing shareholders of Ample Parks MMR (APMPL), acquiring a 26% stake in APMPL. This partnership, which includes a Shareholders Agreement (SHA) with Omega Warehouse Holdings 2 (Omega), an Actis affiliate, marks a strategic investment commitment of INR 20.05 crore over three years. The total investment could reach INR 77.10 crore, with the initial acquisition of 5,200 equity shares at a face value of INR 10 each. Future investments in APMPL will follow a 26:74 equity split, with MLDL holding 26% and Omega retaining 74%.
The consolidated loss after non-controlling interest stood at INR 14 crore for Q2 FY25, compared to a loss of INR 19 crore in Q2 FY24, and a profit of INR 12.7 crore in Q1 FY25. For H1 FY25, total consolidated income was INR 222.7 crore, up from INR 135.8 crore in H1 FY24, with a consolidated loss after non-controlling interest of INR 1.3 crore versus INR 23.2 crore in H1 FY24.
Mahindra Lifespace Developers demonstrated resilience in Q2 FY25, with a reduced net loss compared to the previous year, despite a decline in total income. The company's strong performance in the first half of the fiscal year, particularly in pre-sales and collections, highlights its ongoing recovery and strategic positioning within the mid-premium and premium segments of the real estate market. Furthermore, the recent stake acquisition in Ample Parks MMR signals MLDL's commitment to expanding its portfolio and strengthening its market presence.
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