- 23 May 2025
- ICICIdirect Research
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MAX ESTATES POSTED STRONG RESULT IN Q4FY25
News- Max Estates posted strong result in Q4FY25. Revenue grew by 32.6% YoY (-0.6% QoQ) to Rs 40 crores. Operating profit grew by 16.2% YoY (-21.6% QoQ) to Rs 9.1 crores despite there was dip in operating margin to 22.8% (-302 bps YoY, -609 bps QoQ). PAT stood at 17.4 crores (as against loss of Rs 1.5 crores YoY & de-grew by 12.1% QoQ) mainly driven by higher other income.
Pre-sales during FY25 grew by 189% YoY to 5321 crores (exceeding its guidance of Rs 4800-5200 crores) mainly driven by strong bookings in project Estate 128 (phase 1 & phase 2) & Estate 360. Collection stood at Rs 980 crores in FY25. In terms of launches, it grew by 210% YoY to Rs 5723 crores (exceeding its guidance) in FY25. The company added 4msf of residential project & 5 msf of mixed-use projects during the year. Rental business grew by 66.2% to Rs 110 crores in FY25, mainly driven by increase in occupancy in Max Square & Phase 2 of Max House
View- Pre-sales booking & launches exceeded it's guidance. Outlook remain strong as there are few launches in FY26 worth Rs 9500 crores which would aid pre-sales (guided for Rs 6000-6500 crores for FY26E) to grow at a CAGR of 15-20% post FY25. It also plans to acquire Rs 7,000 crores GDV in next 3 years to achieve target of Rs 21,000 crores which would aid in pre-sales growth in longer term. Rental business seems strong with 3 under-construction projects of 3.2 msf of assets lined for commencement in FY28/FY29 which would increase the rental income to Rs 624 crores in FY30 (Max Estate share would be Rs 318 crores).
Impact- Positive