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Phoenix Mills announces its first 1:1 bonus share issue in nearly two decades, along with strong Q1 results. The company reported an 11.6% increase in revenue to ₹904 crore and an 8% rise in EBITDA to ₹530.8 crore.
Phoenix Mills Limited, a leading mall operator, announced a significant corporate action and financial performance update on Thursday. The company revealed a bonus issue of shares and reported robust growth in its June quarter results.
Phoenix Mills will issue one bonus share for every share held by shareholders as of the record date, which will be announced later. This marks the company's first bonus share issuance in nearly two decades, the last being in December 2005 when four shares were issued for every one held.
In addition to the bonus issue, Phoenix Mills has consistently paid annual dividends to its shareholders. The dividend amount has varied, with the most recent being ₹5 per share, paid last year. The current face value of Phoenix Mills' shares is ₹2 per share.
For the June quarter, Phoenix Mills revenue grew by 11.6%, reaching ₹904 crore. The company's Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 8% to ₹530.8 crore, though the EBITDA margin slightly narrowed to 58.72% from 60.7% in the previous year.
The company experienced strong growth in retail sales, which surged by 25% year-on-year to ₹3,214 crore, driven by robust performance in Phoenix Marketcity Mumbai, Phoenix Palassio, and newly launched malls.
Gross retail collections increased by 28% to ₹794 crore, with a weighted average trading occupancy across major malls at 90% for the quarter. Operational asset occupancy improved to 71% in June 2024 from 70% in March.
The St. Regis in Mumbai, a notable asset of Phoenix Mills, recorded an 85% occupancy rate with an Average Room Rate of ₹16,425.
On Wednesday, Phoenix Mills’ share price closed 3% lower at ₹3,589.8. Despite this dip, the stock has doubled in value over the past 12 months, showing a gain of 107%. For the year 2024, the stock has surged by 60%.
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