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Key Highlights • Earnings Call Date: May 23, 2024 • Fiscal Year Achievements: • 50% growth in real estate portfolio (12 million sq. ft.) • Strategic equity investment of INR 388 crores from New York Life for a 49% stake in two SPVs • Successful launch of Estate 128 with 100% sales in Noida • All operational assets fully leased • Focus on efficient capital deployment and digital enhancements
Industry Trends • Commercial Office Space: • 11% year-on-year increase in net absorption • Delhi NCR leads with 28% growth • Residential Market: • 14% year-on-year growth in housing sales • Max Towers and Max House Phase 1 at 100% occupancy
Financial Overview • FY24 Financials: • Consolidated revenue: INR 93 crores • Loss: INR 68 crores (due to marketing expenses) • Lease rental income growth: 37% year-on-year • Healthy liquidity position
Project Updates • New Project in Sector 36A: • Capital-light acquisition model with INR 275 crores deposit • Revenue share of 35-40% • Upcoming Projects: • Max Square Phase 2 and Max 65 in Gurugram to begin construction in FY25 • Aim to add 3 million sq. ft. annually
Market Dynamics • Delhi NCR Real Estate: • Inventory levels reduced from 80 months to 17 months • Increasing high-income earners expected to rise from 29% to 45% • Cautious Residential Acquisitions: • Targeting minimum IRR of 25%
Operational Insights • Cash Flow: • INR 350 crores generated from residential segment in FY24 • Growth Strategy: • Diversification across Delhi, Noida, and Gurgaon • Preference for joint development agreements (JDAs)
Internal Rate of Return (IRR) Expectations • New Residential Projects: • Target IRR of 25% to 30% • Budget for Land Acquisition: • INR 300 to 400 crores for this fiscal year
Concerns Raised • Land Banks and Margins: • Concerns about lack of land banks compared to competitors • High revenue share in JDAs and its impact on margins
Management's Response • Emphasis on capital efficiency and risk mitigation through current strategies • Confidence in strategic approach and financial metrics
Conclusion • Management expressed optimism for future growth and thanked participants for their engagement.
Max Estates Limited Earnings Conference Call Summary
Date and Purpose • Date: February 12, 2024 • Purpose: Discuss Q3 and 9M FY24 financial results
Key Highlights • Economic Context: • Resilience of the Indian economy • Growing housing demand due to urbanization and rising incomes
• Company Goals: • Expand real estate portfolio by 2 million square feet annually • Target 15% to 20% increase in booking value over the next 3-5 years • Achieve a five-star GRESB rating in 2024
Project Updates • Office Market: • Resilience in 2023 with net leasing of 42 million square feet • Key projects: Max Towers and Max House Phase 1 (fully leased, INR 560 million annual rental income) • Max Square 55% leased, expected full occupancy by 2024 (potential INR 600-700 million rental income) • Max House Phase 2: 65% area transacted at premium rates
• Residential Sector: • Estate 128 in Noida fully sold, collections of INR 441 crores
• Max Asset Services: • Revenue of INR 232 million for nine months of FY24
Financial Highlights • Nine Months Ending December 2023: • Consolidated revenues: INR 629 million • EBITDA: INR 100 million • Loss before tax: INR 614 million • PAT loss: INR 524 million (due to high marketing expenses and one-time provisions)
• Liquidity Position: • Debt: INR 767 crores • Cash and equivalents: INR 444 crores • Net debt: INR 323 crores
Market Insights • Risks and Challenges: • Global slowdown in office leasing • Recovery in India with 70% occupancy returning to offices • Focus on quality in commercial real estate
• Future Projects: • Upcoming Estate 360 project targeting launch in Q1 FY25 (2.4 million square feet)
Revenue Recognition and Projections • Estate 128 Revenue Recognition: • Expected in FY28 upon delivery
• Commercial Portfolio Guidance: • Annuity income potential of INR 400 to 475 crores once fully operational • Booking value target of INR 2,200 to 2,400 crores for FY25
Construction and Funding • Max Square Noida 2: • Construction expected to start by end of FY24
• Funding for Estate 128: • Estimated construction spending of INR 300 to 350 crores over the next couple of years
• Future Acquisitions: • Emphasis on a capital-light approach and equity funding
Conclusion • Rishi Raj thanked participants and encouraged further engagement.
Max Estates Limited Earnings Conference Call Summary
Overview • Date of Call: November 10, 2023 • Release of Transcript: November 15, 2023 • Key Executives: • Sahil Vachani (Managing Director and CEO) • Rishi Raj (Chief Operating Officer)
Company Highlights • Recent listing on stock exchanges after a reverse merger with Max Ventures and Industries Limited. • Focus on growth, capital allocation, and execution in the real estate sector, especially in Delhi NCR. • Plans to expand commercial and residential portfolios. • Commitment to project execution, customer satisfaction, and sustainability.
Project Updates by Rishi Raj • Max Towers and Max House Phase 1: Fully occupied, generating INR 182 million and INR 72 million in H1 FY24. • Max Square: 50% leased post-completion, projected full occupancy rental income of INR 600-700 million. • Max House Phase 2: 54% leased, expected rental income of INR 250-300 million at full occupancy. • Future Developments: • Max Square Phase 2 and a new Gurgaon project starting in Q4 FY24, projected rental incomes of INR 1,000-2,000 million. • Residential Projects: Estate 128 in Noida fully sold, new Gurugram project planned for mid-2024 with a gross development value of INR 3,200 crores. • Mixed-Use Development: Approved commercial plot in Noida, adding 2.5-3 million square feet. • Market Trends: Increased demand for quality developments focusing on consumer experience and well-being.
Financial Highlights for H1 FY24 • Consolidated Revenue: INR 388 million • EBITDA: INR 37 million • Loss Before Tax: INR 532 million • Loss After Tax: INR 429 million • Adjusted EBITDA: INR 169 million • Net Debt: INR 4,961 million • Debt-to-Equity Ratio: 0.4X
Business Development Focus • Acquiring land in Noida, Delhi, and Gurgaon, targeting premium and luxury residential segments. • Preference for joint development agreements due to rising land prices.
Capital Expenditure Plans • Existing projects in Gurgaon and Noida fully funded; construction finance needed over the next three years. • Strong sales pipeline for FY25, aligning capex with expected sales in FY26.
Project Timelines • Max Square 2 completion expected by March 2027. • Gurgaon developments phased over three to five years.
Funding Plans • Sufficiently funded with strong sales from the first residential project. • Ongoing leasing success in Max Square and Okla. • Plans to utilize Lease Rental Discounting (LRD) for growth opportunities.
Conclusion • The call concluded with positive sentiments for upcoming quarters and festive wishes for Dhanteras and Diwali.