Max Ventures & Industries Limited (MaxVIL), a part of India’s leading multi-business conglomerate, Max Group, operates across two core businesses of Real Estate in NCR and Specialty Packaging Films. MaxVIL announced its financial results for the quarter ended 31 December 2019 today.
MaxVIL continued its growth momentum in Q3FY20 across both verticals. The Q3FY20 revenue stood at Rs. 2,709 Mn., up by 20% year on year while EBITDA came in at Rs. 347 Mn. compared to an EBITDA loss of Rs. 1 Mn in Q3FY19 led by healthy leasing momentum of its commercial projects and a sustained turnaround in its packaging business. Profit after Tax for Q3FY20 was recorded at Rs. 67 Mn. compared to a loss of Rs. 113 Mn in the same quarter last year.
The leasing progress in flagship project Max Towers continued unabated with 51% of the total project being leased at rentals which were 25-40% premium to the prevalent rates in the immediate vicinity. The company is on track to complete its ongoing second project, Max House, Okhla by Q1FY21.
Max Estates also progressed on its recently announced Grade A commercial project named ‘Max Square’ in Sector 129 on the Noida Expressway. Max Square is being designed to house commercial office space as well as F&B and entertainment areas. The company is in active discussion with an international partner to co-invest in the project. The land registration and transfer to company is underway. It is now in the process of applying for regulatory permissions and approvals and expects to commence construction in Q1FY21. MaxVIL will be responsible for the final delivery of the project along with leasing the entire 700,000 sq. ft. area and will be entitled to a development fee on the project.
Commenting on the performance, Sahil Vachani, MD & CEO of MaxVIL said,“With our flagship project Max Towers about to be fully leased, Max House – Okhla near completion and construction of Max Square, Noida Expressway to start shortly, our commercial real estate business is on a firm footing. We have been able to create best-in-class office space at a fast clip while keeping within our budgeted cost. We feel confident and believe that it is the right time for us to scale our project pipeline. Therefore, Max Estates will actively bid for distressed commercial projects in Delhi NCR.
We are also in the process of finalizing international co-investment partner/s which will optimise our Capex requirements as we scale and augment earnings through the project management fee.
Our packaging films business, Max Speciality Films continues to show consistent improvement in operational metrics as evident by up-trending margins for the business sequentially from the last few quarters. This has been partly aided by improvement in industry fundamentals as well as increased volume contribution from better profitable value-added speciality films.
Max Estates designs and delivers Grade A+ specifications for its projects built on the WorkWell philosophy that provides its occupants an energy-efficient and green work environment, a technology-enabled smart workspace designed to boost productivity while they are working and a vibrant food and recreation hub when they want to socialize or take a break. This allows the company to remain a preferred choice for tenants looking to occupy Grade A+ commercial office space in Delhi NCR.”
Some key performance highlights of MaxVIL verticals are as below:
Max Estates Limited
Max Towers, Noida
Max House, Okhla
Max Asset Services Limited
Max I. Limited
Max Speciality Films Limited
|
Packaging Films Segment |
Q3FY20 |
Q2FY20 |
Q1FY20 |
Q4FY19 |
Q3FY19 |
|
Revenue (Rs. Mn) |
2,530 |
2,354 |
2,437 |
2,385 |
2,243 |
|
EBIT (Rs. Mn) |
295 |
150 |
140 |
84 |
(15) |
|
EBIT Margins (%) |
11.7% |
6.4% |
5.7% |
3.5% |
-0.7% |
|
Volumes (MT) |
16,169 |
15,735 |
16,052 |
15,761 |
14,536 |
About Max Ventures & Industries Limited (MaxVIL)
MaxVIL
Max Ventures & Industries Limited (MaxVIL), a part of the leading Indian multi-business conglomerate Max Group, owns and operates a real estate business through its 100% subsidiary, Max Estates, and a packaging films business through Max Speciality Films, a 51:49 strategic partnership with Toppan, Japan. MaxVIL also has an investment subsidiary, Max I., which supports entrepreneurial ventures with an early stage investment philosophy. MaxVIL is listed on NSE and BSE.
Max Estates Limited
Established in 2016, Max Estates Limited is the real estate arm of the Max Group and a wholly owned subsidiary of MaxVIL. Its vision is to bring the Group’s values of Excellence, Credibility and Sevabhav to the Indian real estate sector. Its marquee projects include a one-of-its-kind commercial office space Max Towers, on the edge of South Delhi that opened its doors in 2019 and 222 Rajpur, a luxury residential villa community on Rajpur Road, Dehradun. It aims to create, build and operate Grade A+ office spaces in Delhi-NCR.
Max Speciality Films Limited
Max Speciality Films, a subsidiary of MaxVIL, is an innovation leader in the Speciality Packaging Films business. It has a strategic partnership with Japan’s Toppan Printing Co. Ltd., a leading global printing company. Max Speciality Films is among the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films including speciality packaging, labels, coating and thermal lamination films for the India and overseas markets, with a total capacity of 80.50 Kilo Tonnes Per Annum (KTPA).
Max I. Limited
Max I. Limited is MaxVIL’s wholly owned subsidiary, which facilitates Intellectual & Financial Capital to promising and proven early-stage organisations across identified sunrise sectors. Max I.’s future focus will be on proptech start-ups. It has recently launched a proptech accelerator called ‘Maxcelerator’.
Max Asset Services Limited, a wholly owned subsidiary of MaxVIL that provides value added facility management to current and future Max Estates projects and builds and operates managed office spaces.
Source: Newsvior