Phoenix Mills reported mixed financial results for Q2 FY25, with a 4.34% decline in consolidated net profit to INR 290.64 crore, while total income grew by 5.34% to INR 955.06 crore compared to the same quarter last year. The company increased its paid-up equity share capital by INR 35.75 crore through employee stock options and bonus share issuance. Additionally, through its subsidiary Astrea Real Estate Developers, Phoenix Mills acquired six companies for INR 290.10 crore, making them step-down subsidiaries. These acquisitions and capital structure changes indicate the company's strategic expansion efforts despite the profit decline.
The Phoenix Mills has experienced a decline in its financial performance for the second quarter of fiscal year 2025, with its consolidated net profit falling by 4.34% compared to the same period last year. The company's profit after tax reached INR 290.64 crore, down from INR 303.82 crore in Q2 FY24, according to their filing with the Bombay Stock Exchange, highlighting a notable shift in profitability.
Despite this profit dip, the company saw positive movement in its consolidated total income, which grew by 5.34% to reach INR 955.06 crore, up from INR 906.64 crore in the previous year's corresponding quarter. This increase in total income indicates that Phoenix Mills is generating more revenue, showcasing the potential resilience of its operational activities even amidst challenging profit figures.
To further strengthen its financial position, the company underwent significant capital structure changes during this period. Their paid-up equity share capital increased by INR 35.75 crore through two main actions: first, the issuance of 47,699 equity shares (at INR 2 each) to employees under ESOP schemes from 2007 and 2018; and second, the distribution of 17,87,44,921 bonus equity shares (at INR 2 each). These strategic moves not only reflect the company's commitment to its employees but also aim to enhance shareholder value.
In addition to these financial maneuvers, the company's subsidiary, Astrea Real Estate Developers, completed a major acquisition during the quarter. Astrea acquired complete ownership of six companies: Dhanalakshmi Engineering, Pulankinar Investment and Finance, Coimbatore Sameera Investment, Shanthi Chandran Enterprise, Shanthi Chandran Investments Coimbatore, and Sheela Trades. The total acquisition cost was INR 290.10 crore. As a result of this transaction, all six entities have become wholly-owned subsidiaries of Astrea and step-down subsidiaries of Phoenix Mills, marking an important step in the company's growth strategy.
These developments collectively highlight Phoenix Mills' strategic efforts and adaptability in the face of declining profit, demonstrating a focused approach toward expansion and long-term sustainability. As the company continues to navigate the fiscal landscape, stakeholders and investors will likely keep a close watch on how these initiatives unfold and contribute to the overall performance and trajectory of the organization.
These developments reflect Phoenix Mills' strategic efforts to expand its portfolio despite the slight decline in quarterly profits, demonstrating the company's continued focus on growth through both corporate restructuring and acquisitions.
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