Phoenix Mills Q1 FY25 Highlights: Retail Surge and Varied Hospitality Performance

On July 8, 2024, Phoenix Mills Limited announced in a stock exchange filing the operational business update for the Q1 FY 2025.

Retail Segment

In Q1 FY25, Phoenix Mills recorded impressive growth in retail consumption, with retailer sales reaching approximately ₹3,214 crore, marking a significant 25% increase from Q1 FY24. This growth was predominantly driven by strong performances at Phoenix Market City Mumbai and Phoenix Palassio, bolstered by the ramp-up of newly launched malls.

The company reported that the gross retail collections stood at approximately ₹794 crore, reflecting a notable 28% rise year-over-year. The company reported a weighted average trading occupancy of 90% across major malls, coupled with a robust weighted average leased occupancy of 97% as of June 2024.

Notably, newly launched malls such as Phoenix Mall of Asia and Phoenix Mall of the Millennium showed encouraging ramp-ups in trading occupancy rates.

Commercial Offices

Phoenix Mills also reported positive traction in its commercial office segment, achieving gross leasing of approximately 1.51 lakh sq. ft. during Q1 FY 2025 across operational assets in Kurla, Mumbai, and Viman Nagar, Pune. Occupancy levels in these assets improved to 71% by June 2024, up from 70% in March 2024, indicating steady demand and leasing activity in prime locations.

Residential Segment Performance

Phoenix Mills’ residential segment witnessed a notable uptick in sales momentum, driven by strong market demand and efficient conversion rates. The company reported gross residential sales of approximately ₹50 crore in Q1 FY 2025, alongside collections totalling ₹60 crore.

Notably, Phoenix Mills achieved an average selling price of approximately ₹26,000 per square foot during the quarter, underscoring the attractiveness and market acceptance of its residential offerings.

Hospitality Segment

In the hospitality sector, the performance of key properties such as The St. Regis in Mumbai and Courtyard by Marriott in Agra varied in the first quarter of fiscal year 2025. The St. Regis Mumbai reported an occupancy rate of 85%, a slight increase from 82% in Q1 FY24, with an Average Room Rate (ARR) holding steady at ₹16,425 and Revenue per Available Room (RevPAR) rising by 3% to ₹13,923 compared to the same period last year.

Meanwhile, Courtyard by Marriott in Agra saw a decline in occupancy to 63% from 72% in Q1 FY24, alongside a decrease in ARR by 11% to ₹3,919 and a 17% drop in RevPAR to ₹2,619. The company stated that the slower business performance in Q1 FY25 was attributed to a shift in auspicious days impacting Q2 instead of Q1 as in the previous fiscal year and lower-than-expected corporate and leisure travel due to ongoing elections.

On July 8, 2024, the share price of The Phoenix Mills Limited opened at ₹3,739.05, touching the day’s low at ₹3,707.75, as of 12:00 PM on the NSE.

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