ICICI Direct: Phoenix Mills’ Washout Quarter As Expected Led By Covid Disruption

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Phoenix Mills Ltd. reported a washout quarter as expected, owing to the impact of Covid-19, which led to a decline in its retail and hospitality assets revenues and profitability coupled with zero revenues in the residential segment.Reported revenues de-grew approximately 78% YoY to Rs 134.7 crore, with core portfolio (commercial + retail + hospitality) revenues down 67% YoY.Reported Ebitda margin was up 460 basis points YoY to 52.2%, given cost rationalisation. The company reported a loss of Rs 42.2 crore.During the quarter, the company had a cash burn of Rs 65 crore, also aided by IT refund of Rs 40 crore. The company, however, indicated that the cash burn rate has peaked and is likely to reduce as malls recommencement and rental begin to kick in.We note that Phoenix Mills has agreed to 50% rental waiver in the lockdown period for 75-80% retailers. For a further period of up to six months in FY21, rentals are expected to be restructured with reduction in minimum guarantee by approximately 25-30% but with higher revenue share. Near term pain is imminent..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Phoenix Mills’ Washout Quarter As Expected Led By Covid Disruption

For Phoenix Mills, near term pain is imminent, says ICICI Direct in its research report.

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