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MaxVIL cements footprint in commercial RE in NCR

New Delhi [India], Feb 7 (ANI/NewsVoir): Max Ventures & Industries Limited (MaxVIL), a part of India's leading multi-business conglomerate, Max Group, operates across two core businesses of Real Estate in NCR and Specialty Packaging Films. MaxVIL announced its financial results for the quarter ended December 31, 2019 today.

MaxVIL continued its growth momentum in Q3FY20 across both verticals. The Q3FY20 revenue stood at Rs 2,709 Million, up by 20% year on year while EBITDA came in at Rs 347 Million. compared to an EBITDA loss of Rs 1 Million in Q3FY19 led by healthy leasing momentum of its commercial projects and a sustained turnaround in its packaging business. Profit after Tax for Q3FY20 was recorded at Rs 67 Million compared to a loss of Rs 113 Million in the same quarter last year.

The leasing progress in flagship project Max Towers continued unabated with 51% of the total project being leased at rentals which were 25-40% premium to the prevalent rates in the immediate vicinity. The company is on track to complete its ongoing second project, Max House, Okhla by Q1FY21.

Max Estates also progressed on its recently announced Grade A commercial project named 'Max Square' in Sector 129 on the Noida Expressway. Max Square is being designed to house commercial office space as well as F&B and entertainment areas.

The company is in active discussion with an international partner to co-invest in the project. The land registration and transfer to the company is underway. It is now in the process of applying for regulatory permissions and approvals and expects to commence construction in Q1FY21. MaxVIL will be responsible for the final delivery of the project along with leasing the entire 700,000 sq ft area and will be entitled to a development fee on the project.

Commenting on the performance, Sahil Vachani, MD & CEO of MaxVIL said, "With our flagship project Max Towers about to be fully leased, Max House - Okhla near completion and construction of Max Square, Noida Expressway to start shortly, our commercial real estate business is on a firm footing. We have been able to create best-in-class office space at a fast clip while keeping within our budgeted cost. We feel confident and believe that it is the right time for us to scale our project pipeline. Therefore, Max Estates will actively bid for distressed commercial projects in Delhi NCR."

"We are also in the process of finalizing international co-investment partner/s which will optimise our Capex requirements as we scale and augment earnings through the project management fee. Our packaging film business, Max Speciality Films continues to show consistent improvement in operational metrics as evident by up-trending margins for the business sequentially from the last few quarters. This has been partly aided by improvement in industry fundamentals as well as increased volume contribution from better profitable value-added specialty films," he added.

"Max Estates designs and delivers Grade A+ specifications for its projects built on the 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 and recreation hub when they want to socialize or take a break. This allows the company to remain a preferred choice for tenants looking to occupy Grade A+ commercial office space in Delhi NCR," he further said.

Some key performance highlights of MaxVIL verticals are as below:

Max Estates Limited:

Max Towers, Noida

-Leased a total of 27,733 sq ft in Q3FY20. With this, the cumulative leased area stands at 155,773 Lakh sq ft out of the total leasable area of 3.5 Lakh sq ft available with Max Estates

-In addition, it has leased 157,620 lakh sq ft owned by investors, for which the company retains leasing rights.

-The majority of the occupants in the Grade A+ project is mid to large corporates and consulting firms with their corporate office headquartered at Max Towers, thus lending long-term lease visibility and high credibility in our real estate product and design capabilities.

-Our marquee list of tenants includes names such as co-working major Regus, Indian Legal firm Khaitan & Co, French water management giant Veolia, Indian Power trading company IEX, USA-based MNC Emerson, USA-based Data management company Delphix, Indian wellness company Kama Ayurveda, USA-based Technology company ESRI, USA-based Broadcasting company Grass Valley, USA-based Technology company Udacity, among others.

Max House, Okhla

-The Project is in the final stages of project completion for phase 1 of the 100,000 sq ft area. The tower is expected to be launched for leasing in Q1FY21.

-Once completed Max House will be the only Grade A+ office in Okhla phase III. With a strategic location combined with excellent accessibility and connectivity to the entire NCR, we are confident of achieving high occupancy levels in FY21

-Phase 2 of the project admeasuring ~200,000 sq ft of leasable area will commence by the end of Q1FY21

Max Asset Services Limited

-Max Asset Services (MAS) complements the Real Estate arm of MaxVIL to complete its objective of offering a differentiated solution in the Leased Commercial Office market in Delhi-NCR and focusing on real estate as a service opportunity

-MAS is supporting and furthering the WorkWell philosophy in the Commercial Office segment in the Delhi-NCR market by curating superior live experiences

-The current Max Towers tenants have given a very encouraging Net Promoter Score of 9 out of 10 in its tenant engagement survey

Max I. Limited

-We continue to evaluate promising companies in the RE-enabled space while tracking the performance of current investments

Max Speciality Films Limited

-Packaging Films industry has seen significant improvement since last year with improved demand sentiment complemented by stable raw material prices resulting in higher volume offtake at better margins

-Volumes for Q3FY20 stood at 16,169 MT as compared to 15,735 MT in Q2FY20 and EBIT margins expanded by 530 bps to 11.7% in Q3FY20 from 6.4% in Q2FY20

-Value-added specialty films (BOPP + Coating) contributed 29% to packaging Volumes in Q3FY20 vs. 28% in Q2FY20

-Revenue contribution from more profitable value-added specialty films (BOPP + Coating) stable at 39%.

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