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Riders in the Storm: Phoenix Mills, real estate firm with a diversified portfolio

Updated : September 05, 2019 07:29 PM IST

Even as slowdown concerns continue to plague some sectors and companies, CNBC-TV18 has started a new initiative that will put the spotlight on companies that are bucking the slowdown trend by identifying the Riders in the Storm.

Mumbai-based Phoenix Mills is a real estate company but has a diversified portfolio. Around 58 percent of the total revenues come from the retail portfolio, 4 percent come from offices, hospitality contributes 18 percent and residential assets contribute 20 percent of the total revenues.

Phoenix Mills' malls are working at an occupancy level of near 95 percent. Company's debt picture looks decent as the debt-to-equity ratio has declined to 1.15 from 1.79 in the last two years. At the same time, the interest coverage ratio has improved in the last two years.

Around 89 percent of their total debt stands at Rs 4,500 crore, that is a lease rental discounting loan. In the last five years, their EBITDA margins have also improved considerably.

The growth in terms of consumption has been at around 11 percent in the last five years and rental income has also seen decent growth of around 12 percent. The margins have also improved year-on-year (YoY) in the last four years.

There are some factors one need to watch out for. First is the progress of their Chennai mall, which commenced operations in FY19 and has not been doing well so far. Second is the under-construction Oberoi project in Worli, which could pose competition to its flagship High Street Phoenix Mall. The third is residential real estate has been undergoing some pressure.
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