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Hindustan Times
27-05-2025
- Automotive
- Hindustan Times
Mahindra Lifespaces to exit affordable housing by FY30, shifts focus to premium segment: CEO
Mahindra Lifespaces, the real estate arm of the Mahindra Group, has said that the company plans to exit from the affordable housing segment for the time being, stating that it will have zero affordable housing projects on its books by FY30. Managing Director and CEO Amit Kumar Sinha said the company plans to align its real estate strategy with the broader Mahindra brand, which focuses on premium SUVs rather than affordable or luxury vehicles. Similarly, Mahindra Lifespaces will concentrate on offering premium homes that are positioned between the affordable and luxury segments. Sinha said the company plans to pause the development of affordable housing projects to concentrate on premium housing instead. "If you look at Mahindra, it is known for SUVs (cars), not for small cars, not for luxury cars. We have tried both, we have even tried two-wheelers, and it has not been very successful." Drawing a parallel with Mahindra's core automotive strategy, he said, "If you look at Mahindra, it's known for SUVs, not for small or luxury cars. We've tried both, we have even tried two-wheelers, and it has not been very successful,' he said. Also Read: Premiumization of Mahindra SUVs holds a mirror to luxury housing: Amit Kumar Sinha, MD, Mahindra Lifespaces Speaking during the Q4 FY25 investor call, Sinha said, "We have our focus on premium. Premium is defined as more than ₹1 crore to ₹10 crores in NCR and Mumbai, above which the 10 crore market is a threshold for luxury. But in other markets like Pune and Bengaluru, ₹1 to ₹5 crores is mid-premium and premium. So, that is what we want to focus on." "Affordable has not done well for us, and that is something we want to sunset over a period of time. We have to fulfil our customer commitments, which we will do over time," Sinha said. The company currently has affordable housing projects under the Mahindra Happinest brand in Palghar and Kalyan near Mumbai, as well as in Chennai. The company is focusing on outright land purchases, joint development agreements (JDA), and housing society redevelopment. "We are not yet venturing into slum rehabilitation projects. Maybe in the future, high-risk, high-reward business, but we will see if we can execute well on these deals that we already have, then we will look at slum rehabilitation projects," Sinha said. "I think we have to do a lot to first change the brand perception. I think we are trying to be a little bit cool, a little bit different, to create that brand appeal. So that is the first part that we are doing.' In 2024, Sinha told that the company plans to rebrand itself as a premium housing company and expand further into the Mumbai, Pune, and Bengaluru real estate markets. Also Read: Mahindra Lifespaces wins redevelopment deal worth ₹950 crore for three Mumbai housing societies 'We now have premium projects and will rebrand ourselves accordingly," Sinha had said. Alluding to Mahindra's SUV cars, Sinha had said that these come with fully loaded features. "If you look at Mahindra's XUV700, it is a premium car which makes you feel that you got a sweet deal. If you were to buy a GLE or X5 or some car with equivalent features and a powerful engine, it would cost you three times more. We want to give the same feel when it comes to homes. Our projects should have the best space index, greenery, amenities, right price point and social infrastructure," Sinha had said. The company's profit for Q4FY25 grew by 19.02% year-on-year (Y-o-Y) to ₹85.1 crore, and revenue from operations dipped by 35.4% Y-o-Y to ₹9.24 crore. Its total expenses stood at ₹72.04 crore, down by 3.72% Y-o-Y. In the pre-sales segment, the company closed sales worth ₹1,055 crore, down by 2.9% year-on-year. On the business development end, the company added projects with a gross development value (GDV) of ₹3,650 crore in Q4FY25 as against ₹2,040 crore in Q4FY24. Also Read: Mahindra Lifespace targets ₹1200 crore revenue from two housing redevelopment projects in Mumbai Mahindra Lifespaces was established in 1994 and has a development footprint spanning 41.11 million sq ft (saleable area) of completed, ongoing and forthcoming residential projects across seven Indian cities.
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Business Standard
25-04-2025
- Business
- Business Standard
Mahindra Lifespaces Q4 results: Net profit grows 19% to Rs 85 crore
The realty arm of the Mahindra Group, Mahindra Lifespace Developers' profit for the fourth quarter of the financial year 2024-25 (Q4FY25) grew by 19.02 per cent year-on-year (Y-o-Y) to Rs 85.1 crore, missing Bloomberg estimates of Rs 103.03 crore. Further, the company's revenue from operations dipped by 35.4 per cent Y-o-Y to Rs 9.24 crore, far behind the estimate of Rs 367.5 crore. Its total expenses stood at Rs 72.04 crore, down by 3.72 per cent Y-o-Y amid construction expenses incurred by the company. The company's pre-sales for the quarter stood at Rs 1,055 crore, down by 2.9 per cent Y-o-Y. It added projects with a gross development value (GDV) of Rs 3,650 crore in Q4FY25 as against Rs 2,040 crore in Q4FY24. The company's revenue from operations for FY25 stood at Rs 463.9 crore, up by about 66.2 per cent, while its profit declined by 37.6 per cent to Rs 61.3 crore. The company's residential pre-sales for FY25 stood at Rs 2,804 crore, up 20.4 per cent Y-o-Y, amid launches of projects – Vista Ph2, IvyLush, Zen, and Green Estates. Across the year, the company added projects with a GDV of Rs 18,100 crore, four times more than the FY24 additions. Amit Kumar Sinha, managing director and chief executive officer, Mahindra Lifespace Developers, said, 'Our IC&IC business also had a strong year with marquee transactions closed during the year. This positions us well to achieve our stated target of Rs 8,000–10,000 crore sales in five years. Further, our balance sheet remains strong with the highest ever operating cash flows and well-controlled net debt to equity.' Sequentially, the company's revenue was down by 94.5 per cent, while it had incurred a loss of Rs 22.5 crore in Q3FY25. The company's net debt-to-equity ratio remained at 0.39 in FY25. Additionally, the company announced a dividend on equity shares at Rs 2.8 per share.
