|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MaxVIL Back to Strong Profits in Q2; Q2 EBIDTA up 5.3x to Develop Another Grade A+ Office Complex on Noida Expressway | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Delhi, Delhi, India
Max Ventures & Industries Limited (MaxVIL), a part of the US$ 3.2 billion Max Group, operates across two core businesses of Real Estate in NCR and Specialty Packaging Films. MaxVIL has announced its results for the quarter ended 30th September 2019.
Commenting on the Performance, Sahil Vachani, MD & CEO of MaxVIL said, “We are pleased to announce strong performance across our businesses in Q2 FY20 thus continuing the positive momentum from Q1FY20. We have taken significant steps in the Real Estate vertical with a land parcel acquisition in Sector 129 in Noida. The investments for the next phase of Real Estate growth will be funded through a frugal capital model which deploys internal accruals along with the platform level investments from global institutional funders.
The leasing momentum at our flagship commercial project, Max Towers has picked up significantly with 34,152 sq. ft. space leased in the current quarter. We are extremely pleased with the tenant base we have acquired which comprises a balanced mix of MNCs, US-based technology firms, large domestic services firms etc. Given the Grade A+ specifications of Max Towers as well as a progressive environment built on our WorkWell philosophy that provides its occupants an energy-efficient and green work environment, a technology-enabled smart workspace designed to boost productivity while they are working and a vibrant food & recreation hub when they want to socialize or take a break. Our recent leases are at a 40% premium to the micro market rates.”
Of the 5 lakh sq. ft. available at Max Towers, it has sold 1.45 lakh sq. ft. at a value of approx. Rs. 2,000 Mn. The proceeds will be utilized to build a robust, differentiated high quality office assets portfolio with potential to deliver a mid to high teen IRR profile. With the sale and leasing, Max Towers has established its credentials in premium office space in NCR.
An agreement for purchase of a distressed commercial use land parcel at a prime location on Noida Expressway (Sector 129) by a wholly owned subsidiary of Max Estates Limited has also been executed. Construction is expected to commence in Q1FY21, which coincides with the completion timeline of Max House, Okhla. This would help sustain a steady project construction pipeline for Max Estates.
Max Towers continues to scout for more such attractive office space development opportunities in Delhi-NCR through a combination of platform and project level partnerships as this geography continues to show high absorption and low vacancy levels of Grade A+ office space. It has shown the capability to create differentiated assets within time and budget while navigating the regulatory landscape. Max Towers’ proven, highly capable and motivated real estate team is now looking to capitalize on the vast opportunities in Real Estate in the NCR.
The Specialty Films business, after coping with a cyclical industry downturn has emerged stronger and witnessed a sustained improvement in H1FY20. The oversupply in the industry due to additional capacity creation is normalizing and in turn is helping improve profitability. The strategy of increasing the contribution of Specialty grade films will lead to outperformance.
Highlights of Q2 & H1 FY20 Consolidated Financials
Some key performance highlights of MaxVIL verticals are as below:
Real Estate
Agreement signed to purchase a distressed commercial land parcel on Noida Expressway
Max House Okhla Project updates
Max Towers Updates
Max Asset Services Ltd.
Max I. Ltd
Specialty Films
About Max Ventures & Industries Limited (MaxVIL) MaxVIL Max Ventures & Industries Limited (MaxVIL), a part of US $3.2 billion Max Group, owns and operates a real estate business through its 100% subsidiary, Max Estates, and a packaging films business through Max Speciality Films, a 51:49 strategic partnership with Toppan, Japan. MaxVIL also has an investment subsidiary, Max I., which supports entrepreneurial ventures with an early stage investment philosophy. MaxVIL is listed on NSE and BSE.
Max Estates Limited Established in 2016, Max Estates Limited is the real estate arm of the Max Group and a wholly owned subsidiary of MaxVIL. Its vision is to bring the Group’s values of Excellence, Credibility and Sevabhav to the Indian real estate sector. Its marquee projects include a one-of-its-kind commercial office space Max Towers, on the edge of South Delhi that opened its doors in 2019 and 222 Rajpur, a luxury residential villa community on Rajpur Road, Dehradun. It aims to create, build and operate Grade A+ office spaces in Delhi-NCR.
Max Speciality Films Limited Max Speciality Films, a subsidiary of MaxVIL, is an innovation leader in the Speciality Packaging Films business. It has a strategic partnership with Japan’s Toppan Printing Co. Ltd., a leading global printing company. Max Speciality Films is among the leading manufacturers of Biaxially Oriented Polypropylene (BOPP) films including specialty packaging, labels, coating and thermal lamination films for the India and overseas markets, with a total capacity of 80.50 Kilo Tonnes Per Annum (KTPA).
Max I. Limited is MaxVIL’s wholly owned subsidiary, which facilitates Intellectual & Financial Capital to promising and proven early-stage organisations across identified sunrise sectors.
Max Asset Services Limited, a wholly owned subsidiary of MaxVIL is a special purpose vehicle that focuses on providing asset management through tenant experiences & facility management services, including real estate as a service opportunities particularly in the commercial real estate segment.
For further details, please contact Investor Contact Press Contacts
Safe harbor statement Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||
| ||||||||||||||||