Marathon Nextgen Realty LtdQ1 FY25Realty

Marathon Nextgen Realty Ltd

Q1 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Revenue guidance

Category 4

→No specific future-looking sales or revenue guidance for FY '26 was provided during the call.
→The management refrained from commenting on pre-sales outlook for FY '26 as it is a future-looking statement.
→They emphasized evaluating real estate companies based on a 3-year moving average turnover due to quarter-to-quarter fluctuations.
→The affordable segment sales tend to pick up towards the latter stages of project completion.
→Growth in realization (sales price) has been consistent, with a 5% to 10% increase year-on-year at various projects.
→The company is focused on strong micro markets and continues to see sustained demand and growth in those markets.
→Anticipation that declining interest rates will further boost real estate demand.
→The merger and acquisition of additional land parcels (Panvel, Bhandup, Dombivli) could unlock future value after regulatory approvals.

Category 3

→FY '25 saw a record PAT of Rs. 190 crore, with a 13% YoY growth and a compounded PAT growth rate of 48% over four years, showing strong earnings momentum.
→Realization in projects has grown year-on-year by 5-10%, indicating sustainable pricing power.
→Construction progress and timely delivery are expected to enhance future sales recognition.
→Management advises evaluating performance on a three-year moving average turnover basis, reflecting the cyclical nature of real estate sales.
→Demand remains strong in targeted micro markets due to population growth, aspirational housing needs, and inward migration.
→Interest rate trends, particularly rate reductions by 0.25 to 0.5 bps, are expected to further boost demand and market growth.
→Debt reduction and cost of debt improvements support healthier profitability and cash flows.
→Merger-related enhancements are expected to unlock additional value post-approval, potentially benefiting earnings long-term.

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→The company has substantially reduced its debt by more than Rs. 200 crores in FY '25, resulting in a healthy net debt to equity ratio of 0.46.
→The average cost of debt has reduced during the financial year, and the overall debt has decreased.
→The management states they keep refinancing whenever cost reduction opportunities arise and will continue to look for such opportunities.
→There is no explicit mention of any current or immediate future fundraising through debt or equity.
→The company emphasizes maintaining a sustainable capital structure and prudent debt management.
→Any updates on fundraising will likely be communicated in due course as part of ongoing business strategy.

→The company’s existing portfolio includes strong ongoing projects with significant work carved out at Monte South (Byculla), Futurex (Lower Parel), and Bhandup.
→At Bhandup, around 20 acres (combining 14 acres and 5.8 acres clusters) are under development with multiple buildings ongoing.
→Projects in Panvel cover approximately 25 acres with 19 buildings and 4 more proposed.
→The company has incoming land parcels totaling approximately 418 acres: 205 acres in Panvel, 130 acres in Bhandup, and 83 acres in Dombivli, subject to regulatory and statutory approvals.
→Detailed area and developable analysis for incoming land will be shared in an upcoming presentation.
→Sales tend to accelerate towards project completion; early-stage sales are comparatively slower. Overall, no slowdown in sales observed.
→Total bookings for FY '25 stood at Rs. 605 crores with collections of Rs. 523 crores.

Yes

→Marathon Nextgen Realty Limited has significant incoming land parcels awaiting approval:
→ - 205 acres in Panvel
→ - 130 acres in Bhandup
→ - 83 acres in Dombivli
→ - Additional projects in Lower Parel
→These lands and projects are part of a composite scheme of amalgamation subject to regulatory approvals, including NCLT sanction.
→The company has ongoing major projects in Byculla (Monte South), Panvel (Nexzone), Bhandup, and commercial assets like Marathon Futurex in Lower Parel.
→Once approvals are received, detailed development plans and capital deployment will be shared in presentations.
→Current focus remains on progressing construction rapidly and completing existing projects with quality and timely delivery.
→The merger will consolidate promoter assets and projects under the listed entity, simplifying group structure and enabling efficient capital utilization for value unlocking.

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