New Delhi, November 25, 2018: Max Ventures and Industries Limited (MaxVIL), a part of the US$ 3 billion Max Group, operates across two core businesses of speciality packaging films and Premium Real Estate, additionally it also focuses on Early stage venture investing. MaxVIL has announced its Second Quarter and Half Year Ended September 30, 2018 results.
Highlights of Consolidated Financials at a Glance
| Particulars (Rs. Lakhs) |
Q2 FY19 |
Q2 FY18 |
YoY% |
Q1 FY19 |
QoQ% |
| Consolidated Revenue |
26,754.47 |
17,720.79 |
51.0% |
18,183.37 |
47.1% |
| Revenue from Packaging Films |
24,485.17 |
17,433.66 |
40.4% |
16,595.86 |
47.5% |
| Revenue from Real Estate |
2,206.55 |
17.57 |
|
1,489.37 |
48.2% |
| EBITDA (incl other income) |
1,226.78 |
1,437.33 |
-14.6% |
680.85 |
80.2% |
| PBT |
(624.08) |
224.64 |
-377.8% |
(556.41) |
-12.2% |
- The revenue of the Company has increased by 51% in Q2 FY19 compared to Q2 FY18 and 47% compared to Q1 FY19.
- The above increase in revenue from packaging films is on account of revenue from newly inaugurated Line 5.
- Sales volume for BOPP films has increased by 33.1% to 15,600 tons in Q2 FY 19 from 11,721 tons in Q2 FY 18
- The increase in revenue from real estate is on account of sale recognition of additional units of luxury residential project, 222 Rajpur in Max Estates.
- EBITDA has increased by 80% in Q2 FY19 compared to Q1 FY19
- Inspite of falling output prices we are able to remain in cash profit status
- Max Towers is currently under development, rentals are to start from Q4 FY19
- Lower PBT on account of accrual of depreciation and interest for new line for Line 5 in packaging films business
Management Perspective
Commenting on the Results, Mr. Sahil Vachani, Managing Director and CEO said, “Q2 FY19 saw our flagship project Max Towers enter its final phase of construction. We expect construction completion and Occupation Certificateby the end of Q4FY19. So far, we have seen good traction for Max Towers from renowned domestic and global companies andare confident about converting them to tenantsat market-leading rentals. We have also started the development of our second Grade A+ commercial project at Okhla and expect to complete it over the next 24-30 months.
We had an impressive revenue growth in our Speciality Films business in Q2 FY19. However, the profits were straineddue to the sudden rise in the price of crude oil and increased competitiveness in the industry. With our focus primarily on innovative research, we expect our business to be more resilient in the long run with better profitability prospects.
Overall, the ongoing development costs of Max Towers have created pressure on short-term profitability along with the Head Office costs which are expensed. Additionally, the depreciation and interest costs on the new manufacturing line (Line 5) of Max Speciality Films have also contributed to the strain on profits. With the imminent launch of Max Towers leading to rental income inflow as well as optimum utilization of increased Speciality Films capacity, we expect profitability pressures to ease out significantly.”
Business Updates
Max Estates
Creating a portfolio of ‘landmark addresses’ in NCR and North India for Emerging India.
- Max Towers Commercial, Noida – We expect the construction work to be completed by Q4 FY19. This will be the 1stCommercial offering of MaxVIL. We have already leased about 50,000 Sq. Ft. to a premium Co-Working Company. The lease is likely to commence in Q4.
- Max House Commercial, Okhla NCR – This is a Re-development of office campus located within South Delhi, comprising ~100,000 sq. ft. in the 1st phase. We have begun the work on this project and expect to deliver this project in the next 24-30 months
- Rajpur Residential Villas, Dehradun – We have completed the work for the project and are awaiting occupancy permissions. Of the project size of 21 villas, have sold 10 units worth Rs. 3,692 Lakhs and expect the balance sale of villas to be completed in FY19. This is the 1st residential project of MaxVIL and has been completed before scheduled time.
Commenting on the performance of the Real Estate business, Mr. Arjunjit Singh, CEO – Max Estates Ltd. said, “We are on track to deliver our first commercial project Max Towers at Noida. This flagship project will be a benchmark for the commercial real estate sector in NCR, offering world-class facilities for its occupants. Having already leased a small portion of the tower to a large co-working multi-national, we are confident of building a high-quality tenant profile for Max Towers and make it ‘the Address’ for commercial real estate in NCR.”
Max Speciality Films
Offering high definition, cutting edge innovative products to fulfill the aspirations of Emerging India
| Particulars |
Q2 FY19 |
Q2 FY18 |
Y-o-Y% |
H1 FY19 |
H1 FY18 |
Y-o-Y% |
| Revenue (Rs. Lakhs) |
24,485.17 |
17,433.66 |
40.4% |
41,081.03 |
35,142.24 |
16.9% |
| Sales Volumes (Tons)* |
15,600 |
11,721 |
33.1% |
27,382 |
22,216 |
23.3% |
*BOPP Manufacturing Line Capacity was increased to 80.85 KTPA from 46.35 KTPA in May-2018
Commenting on the Films division performance, Mr. Ramneek Jain, CEO – Max Speciality Films Ltd said, “The speciality films industry is facing some pressure due to higher crude prices and volatile forex rates, which are affecting margins. We are focusing on innovation and increasing the share of value added products to stay ahead of the competition. Our partnership with Toppan Group of Japan, coupled with our R&D capabilities has enabled us to widen our product basket and increase our market share. We continue to increase our capacity utilization and remain confident of improved financial performance going ahead.”
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