Horizon Industrial Parks Ltd
Horizon Industrial Parks Q1 FY27: Revenue ₹200 cr; contracted revenue run rate ~₹967 cr; IPO deleveraging strengthens balance sheet
Earnings Call Transcript
Financial Performance
- Q1 FY27 revenue ₹200 crores, up 23% YoY.
- EBITDA ₹161 crores; EBITDA margin ~80%.
- Net loss ₹12 crores in Q1 due to depreciation and interest.
- Proforma cash PAT ~₹116 crores after debt paydown.
- Contracted revenue run rate ~₹967 crores as of 30 Jun.
Operating Update and Growth
- Leased 1.9 mn sq ft across 13 transactions; 9 new customers.
- 3/4 of leasing from industrial customers.
- On track to deliver 6.5 mn sq ft leasing in FY27.
- 4 mn sq ft pre-leased; revenue to begin 9–12 months from now.
- Delivered 1.0 mn sq ft this quarter; occupancy in high-90s% range.
Growth Strategy and Capex
- 4-pronged growth: 5% rent escalations; embedded MTM opportunities.
- Large-format parks: 25 mn sq ft more to develop; approvals in place.
- In-city expansion: 6 mn sq ft over 3 years; rentals 2.5x–3x big-format.
- Value-added services to contribute 5–10% of revenue in 5 years.
- Fully paid land bank enabling ~30 mn sq ft of further development.
Balance Sheet and Cash Flow
- IPO raised ₹4,250 crores primary; net debt ~₹2,500 crores as of 30 Jun.
- Debt-cost ~8.2%; expect 40–50 bps reduction post deleveraging.
- Rationalization of debt costs expected after ratings upgrade.
- Total assets: 46 assets across 9 states and 10 markets; land bank 2,300 acres.
Q&A Highlights
- 3–5 year demand path: growth from 5% escalations, large-format and in-city expansion, value-added services.
- In-city deliveries: end-FY delivery for the first assets; mid-mile rents ₹65–₹70 per sq ft; 2.4 mn pre-leased.
- Acquisition pipeline: continue to pursue opportunities; ~4–5 years of headroom; no quantified target.
- Delhi High Court case: sub judice; management remains confident on asset delivery.
- In-city rent premium: 2.5x–3x versus big-box; construction cost ~₹4,500 per sq ft.
Risks and Watchpoints
- Expiries: this year ~0.3 mn sq ft; next 9 months ~1.4 mn; next fiscal ~2.2 mn.
- Profitability timing: expect second/third quarters to show P&L turning black on pro forma basis.
- In-city project execution remains contingent on approvals and leasing traction.