Conference Call with Phoenix Mills Management and Analysts on Q4FY20 and Full Year Earnings Performance and Outlook. Listen to the full earnings transcript.
Highlights from Management
- Our retail partners are going through a tough time, and we have offered them a three month moratorium on rental payments. As of this call three malls are open, in Bangalore, Bareilly and Lucknow.
- Good traction in gross rental collections in recent months before the pandemic required shutdowns. We have two towers at Pune nearing completion and traction for leasing there appears strong.
- Average daily retail consumption in June has reached 38% v/s avg daily consumption during Jun 2019. Weekend & Weekday consumption is at 51% & 27% of Jun 2019. June 2019 base was higher on account of End of Season Sale.
- Highest consumption recovery is in electronics, which is 83%-240% of normal in Bangalore and Lucknow. Lowest recovery is in footwear, bags and accessories at 14%-22% of normal levels.
- Collections in June expected to be at 86-87% by the end of the month, and there seems to be very nominal falloff.
- We believe our business model will become more relevant post COVID, as customers prefer safe, sanitized areas.
- Hospitality segment - St Regis Hotel has 85% occupancy in January and Feb. Agra hotels will remain closed for now since tourist traffic is not expected to be noticeable.
- Average cost of borrowing down to 8.93% in Q4FY20 from 9.29% in Q3FY20.
- 86% of Debt is long-term. Debt on the operational portfolio is primarily leaserental discounting for retail and commercial or backed by steady hotel revenues.
- Reduction in cost of borrowing by 45 bps yoy. As per the directive of RBI, we have opted for Moratorium from banks for the period of March-2020 to August-2020.
