Phoenix Mills Ltd Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Congratulations on continued improvement here. My first question relates to the cash flows. Is it possible to get a better picture on cash flow in terms of how much did we spend for third quarter and 9 months as well?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : So you had INR 364 crore of collection, INR 260 crore of outflows. Is it -- so this is for Q3?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : Okay. So INR 364 crores inflow, INR 100 crore CapEx, down INR 260 crores operating expense, plus INR 63 crores of others, right?

Question: Puneet J. Gulati - HSBC, Research Division - Analyst : So...

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Sir, I have 2 questions. One, over the next -- so in FY '23, if you could help us know what would be the commercialized retail area in square feet, which stands at INR 7 million today, and commercialized and operational -- commercial assets, which stand at about 1.3 million square feet today.

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : So 1.3 goes to about 1.8 in FY '23, basically?

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Okay. Over the next 4 years, let's say, '23 and '24, based on the space addition program, the net -- the debt figure or the net debt figure, do you see it directionally going down? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2021 / 6:00AM, PHOE.NS - Q3 2021 Phoenix Mills Ltd Earnings Call

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Yes.

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : And this is the net debt figure, right?

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Okay. And my last...

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Sir, I was a bit confused. The net debt figure, which was there during quarter 2, was about INR 2,700 crores.

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : Okay. And my last question is, you were answering to one of the participants about 85% threshold and above, the rentals go back. Just keeping that discussion aside, any case, with effect 1st April 2021, everyone goes back to the original agreement, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2021 / 6:00AM, PHOE.NS - Q3 2021 Phoenix Mills Ltd Earnings Call

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : And when they go back to the original agreement, they go back to the FY '20 rental or the escalated rental post FY '20?

Question: Pritesh Chheda - Lucky Investment Managers Private Limited - Analyst : As per escalations. And what is the escalation of the 2 years?

Question: Karan Khanna - AMBIT Capital Private Limited, Research Division - Analyst : Shishir, on the Alipore land acquisition, when you look at the broader demographics of the city, do you feel that with the highest proportion of aging population of more than 12%, lowest proportion of [losing the rent deals] at sub-20% and lowest volatility rate amongst all the metros, Kolkata is actually a good market to be in 5 years out? And as a follow-up, is there now a change in strategy from entering a Tier 1 opportunity to a Tier 1 city? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2021 / 6:00AM, PHOE.NS - Q3 2021 Phoenix Mills Ltd Earnings Call

Question: Karan Khanna - AMBIT Capital Private Limited, Research Division - Analyst : So on the acquisition cost, we understand the recent deals, although of smaller sizes in and around Alipore, have been transacted at an average INR 20 crores to INR 30 crores per acre. So do you believe you have overpaid for the land parcel or you feel that, given scarcity of large land parcels in that location, INR 40 crores an acre is a good price for a land parcel of that size?

Question: Karan Khanna - AMBIT Capital Private Limited, Research Division - Analyst : Okay. And lastly, what we also understand is that while Alipore is amongst the most post residential areas, what we have also picked up is that unlike most of the large metros, connectivity is not an issue in Calcutta, and most of the citizens have a preference for traveling towards Park Street up north and Salt Lake in the North Eastern belt, given better social avenues in these markets. Moreover, given existing strong consumption that is happening at South City and Forum Malls, do you believe -- do you feel there is enough room for another 1 million square feet mall in that market? Especially since most of the development is now happening towards the north end of the city, especially in areas like [Rajarhat] and so on.

Question: Abhishek Bhandari - Macquarie Research - Analyst : Shishir, I had a question on your project price. So could you update us what's the status in terms of approvals there? Especially, given that somebody else asked the windfall from the premium cut could be INR 400 crores, which you mentioned, so in that context, would you want to buy the premiums altogether before December?

Question: Abhishek Bhandari - Macquarie Research - Analyst : Okay. And Shishir, second question is on your residential projects. I think it's something like a noncore for you now, and it has been there for quite a while. There has been a pickup in the consumer sentiment, the sales have risen, which is also getting reflected in your own numbers. So any plans to quickly get out of that Bangalore resi and use that cash into your core areas like Project Rise or maybe some other opportunities (inaudible) side.