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Earnings Overview • Date of Call: May 30, 2024 • Submission Date: June 4, 2024 • Key Financial Metrics: • Net Revenue: INR 705 crores (down from INR 717 crores in FY'23) • Profit Before Tax: INR 180 crores (up 15% from FY'23) • Profit After Tax: INR 169 crores (up 36%) • Net Debt Reduction: Improved debt-equity ratio to 0.75
Market Demand and Project Updates • Strong Demand: Noted in Panvel and Bhandup; no decline in inquiries. • Price Increases: 5%-6% year-on-year in some areas; South Mumbai prices up 25% over three years. • Nexzone Phase 1: Expected completion ahead of schedule; many apartments occupied. • Villa Projects: Possible in MMR region but not currently planned due to land use restrictions.
Financial Management • Debt Management: Reduced average cost of debt from 15.5% to 12.5% through refinancing. • Future Funding: Open to raising funds for redevelopment projects via equity or debt.
EBITDA and Operational Performance • Consistent Growth: Year-on-year EBITDA growth with improved margins. • Balanced Contribution: Performance across city, mid-segment, and suburban areas.
Upcoming Projects and Revenue Potential • Future Launches: Approximately 12 lakh square feet planned for FY’25, GDV estimated at INR 1,400 to 1,500 crores. • Sales Projections: Targeting INR 1,000 to 1,200 crores in bookings for FY’25 (24%-33% growth). • Commercial Leasing: Strong pipeline but slower uptake recently.
Unsold Inventory • Total Unsold Inventory: Approximately 225,000 square feet, valued at INR 380 crores. • Residential Price Increase: Monte South prices rose from INR 22,000 to INR 23,500 per square foot.
Operational Capacity and Construction Progress • Management Bandwidth: Currently utilizing 60%, indicating capacity for more projects. • Construction Update: Tower B at 40 floors completed; Tower C at foundation stage.
REITs and Future Developments • Interest in REITs: Limited current involvement but potential for future SME REITs. • Commercial Developments: No retail mall planned; street retail shops in some buildings.
Investor Engagement • Revenue Recognition: Monte South revenue recognized based on percentage completion; 40% not reflected in top line. • Commitment to Growth: Management emphasized maintaining company values while driving sales and construction growth.
Marathon Nextgen Realty Limited Q3 FY24 Earnings Conference Call Summary
Financial Performance • Nine-month profits exceeded previous full year's total. • Q3 sales: 171,757 square feet, booking value of Rs. 258 crores, collections of Rs. 206 crores. • Nine-month net revenue: Rs. 549 crores, profit after tax: Rs. 128 crores (23% margin). • Deleveraging efforts reduced net debt to Rs. 733 crores.
Operational Highlights • Optimism for growth in Panvel area due to infrastructure developments (Navi Mumbai airport, trans-harbor link). • Potential of large land parcel in Panvel with improved connectivity attracting buyers.
Debt Management • Debt-to-equity ratio improved to 0.75 from 1.41. • Debt service ratios improved; average cost of debt decreased from 14.44% to 12.5%. • Plans to continue debt reduction while expanding project portfolio.
Recent Acquisitions • Update on 14-acre land parcel in Bhandup with projected GDP of ₹2,500 crore. • First phase launched, selling 1.8 lakh square feet at ₹10,000 per square foot.
Future Project Launches • Upcoming projects: Monte South, Nexzone, Bhandup with a total launch value of ₹1,300 crore. • Future X project in Lower Parel nearing completion; inventory expected to sell within three years.
Q&A Highlights • Future X project: 13-storey building completed up to stock slab; expected sales within four to six quarters. • Plans for around seven projects in Bhandup with projected GDP of ₹2,500 crores. • Strategy to acquire more projects into the listed entity, focusing on redevelopment in South Mumbai. • Price hikes of 5% to 10% noted in ready inventory, especially in South Mumbai. • No specific occupancy certificates expected in the coming quarter; projects nearing completion.
Market Insights • New Atal Bridge in Panvel generating increased inquiries and walk-ins. • Government focus on affordable housing could benefit Marathon's projects, particularly in Bhandup.
Conclusion • Management expressed optimism for future performance and commitment to keeping stakeholders informed.
Marathon Nextgen Realty Limited Q2 FY24 Earnings Conference Call Summary
Key Highlights • Date of Call: November 9, 2023 • Submission Date: November 15, 2023 • Key Management: Chairman Chetan Shah, Vice Chairman Mayur Shah
Financial Performance • First Half FY24 Results: • Net Revenues: ₹339 crores • EBITDA: ₹146 crores • Profit After Tax: ₹78 crores • Sales Momentum: Strong demand and reduced inventory levels noted.
Future Growth Outlook • Optimism: Healthy project pipeline and strategic land holdings in Mumbai Metropolitan Region. • Target Profit: 15% profit after tax on new projects, with variable IRR based on specifics.
Upcoming Projects • Highlighted Projects: Monte South, Nexzone • Total Saleable Area: Approximately 31.5 lakh square feet • Estimated Sale Value: ₹4,660 crores • Future Launches: Estimated 9 lakh square feet in 2024.
Revenue Insights • Quarterly Revenue Drop: Recent decline to ₹129 crores attributed to fluctuating real estate sales. • Price Increases: Noted 5% to 10% price increases across various projects.
Inventory and Sales Strategy • Unsold Inventory: Significant amounts in Monte South and Nexzone; part of FutureX already leased. • Debt Management: Aim to maintain a debt-to-equity ratio of 0.5 to 1.0, with gradual debt reduction.
Development and Redevelopment Plans • New Projects: Located near Asian Paints in Gadhav Naka area. • Joint Development: Open to collaborations with other builders. • Redevelopment Opportunities: Exploring areas like Worli and Pedder Road.
Conclusion • Management Sentiment: Gratitude for investor support and optimism for future growth.
Marathon Nextgen Realty Limited Q1 FY'24 Earnings Conference Call Summary
Key Highlights • Date: August 16, 2023 • Strong Quarterly Results: • 131,000 square feet sold • Booking value: ₹199 crore • Collections: ₹166 crore • Net revenue: ₹210 crore (up from ₹98 crore in Q1 FY'23) • EBITDA: ₹80 crore • Profit after tax: ₹43 crore • Net debt: ₹832 crore • Projected cash flows: ₹592 crore from sold units
Future Growth Outlook • Optimism for Growth: • Healthy project pipeline • Positive real estate market outlook • Expected price increases of 10-15% across projects
Upcoming Projects • New Launches: • Monte South (200 units, ₹660 crore) • Neo Park Phase 3 (525 units, ₹171 crore) • Neo Park Wing C (147 units, ₹55 crore) • New project in Panvel (expected contribution over ₹200 crore) • Total Units: Approximately 872 units valued at ₹886 crore
Land Acquisition Plans • Bhandup Land Parcel: • 14-acre acquisition from Nexzone Fiscal Services • Plans to acquire a 90% stake pending shareholder approval • Expected turnover: ₹2,250 crore over the next decade
Financial Strategy • Debt Management: • Current debt cost: 14.5% • Aim for further debt reduction by FY '25 • Target debt-to-equity ratio around 1 • Future Project Pipeline: Approximately ₹4,650 crore over the next five years
Sales and Market Performance • Sales Momentum: • Strong bookings in existing projects like Monte South • Successful price hikes implemented • Geographic Focus: • No new projects in North Mumbai; focus on South Bombay
Fundraising and Financial Stability • Current Financial Position: • No immediate fundraising plans • Financially stable with secured bank loans and strong sales velocity • Construction finance readily available for projects with clear titles
Conclusion • Q&A Session: • Addressed various inquiries regarding projects, debt, and market strategy • Emphasized ongoing efforts to consolidate land banks and explore redevelopment opportunities.
Marathon Nextgen Realty Limited Q4 FY'23 Earnings Conference Call Summary
Date and Submission • Date of Call: May 26, 2023 • Submission to BSE and NSE: May 30, 2023
Key Financial Highlights • Net Revenue: Increased by 134% year-on-year to INR 717 crores • Profit After Tax: Rose by 218% to INR 124 crores • Pre-sales: Reported at INR 530 crores • Debt Reduction: Decreased by INR 352 crores during FY'23
Management Insights • Future Growth Confidence: Supported by a strong project pipeline and ongoing market demand • Unsold Inventory: Valued at approximately INR 390 crores (185,000 square feet) • Impact of Interest Rates: Negligible effect on demand in affordable and mid-luxury segments
Project Developments • Focus Areas: Redevelopment opportunities in Lower Parel and Worli • Upcoming Launch Pipeline: Projects totaling around 7.5 lakh square feet, valued at INR 1,000 crores • Future Sales Estimates: INR 2,092 crores from ongoing and upcoming projects
Specific Project Updates • Monte South Project: • Comprises five towers; future launches planned for Tower C • High EBITDA margins, with other projects performing well in bookings • Thane and Dombivli Projects: Still in pre-development, no launches expected in the next two years
Financial and Strategic Discussions • Debt Levels: Reduced to INR 838 crores, but interest costs increased due to strategic borrowing • Merging Entities: Interest in consolidating unlisted entities under the Marathon brand • Joint Ventures: Profits from Monte South being booked but may not fully reflect in top line due to 40% ownership stake
Project Status Updates • Marathon Futurex: 35 out of 38 floors have received occupancy certificates; cash flow optimization planned • Revenue Recognition: Significant revenue expected from Tower A in the current financial year
Conclusion • Management Appreciation: Chetan Shah thanked participants for their interest and questions.
Company Overview • Date of Call: February 17, 2023 • Submission to BSE and NSE: February 24, 2023 • Key Management: Chairman Chetan Shah, Vice Chairman Mayur Shah • Focus: Operations, financial performance, governance, and project portfolio
Financial Performance • Sales Bookings: Rs. 271 Crore in Q3 FY2023 • Revenue: Rs. 278 Crore (up from Rs. 68 Crore YoY) • EBITDA: Rs. 142 Crore • Profit After Tax: Rs. 80 Crore • Net Debt: Rs. 883 Crore, with plans to reduce debt-to-equity ratio below 1
Growth Strategy • Land Banks: Substantial holdings in Thane, Dombivli, Bhandup, and Panvel for future projects • Revenue Recognition: Percentage completion method for accounting • Future Projections: Anticipated annual bookings of around Rs. 600 Crore with 15%-20% growth target
Project Focus • Slum Redevelopment: Emphasis on Bhandup, with over 100 acres of land bank • Operational Enhancements: Improving systems and exploring new redevelopment opportunities • Inventory Management: Focus on cash flow generation rather than speculation
Corporate Structure and Transparency • Transition Plans: Moving projects from private entities to the listed company for better transparency • Capital Raising: Leveraging market position to raise capital effectively
Challenges and Commitments • Low Margins: Acknowledgment of challenges in slum redevelopment due to commodity price fluctuations • Social Responsibility: Commitment to balancing profitability with community engagement
Conclusion • Investor Relations: Management expressed gratitude to investors and eagerness for future engagements • Long-term Outlook: Confidence in sustainable and profitable growth trajectory