Max Ventures posts its best ever financial performance

Max Ventures & Industries Limited (MaxVIL), a part of India’s leading multi-business conglomerate, Max Group, has announced its financial results. The company operates two core businesses, real estate and specialty packaging films. MaxVIL’s revenue in FY21 grew 14% to Rs 11,723-million, while its PAT rose over 6 times to Rs 571-million on adjusted basis.

14 Jun 2021 | By Rahul Kumar

The company continued to witness strong business momentum in the specialty films business recording its highest ever revenue and EBITDA for the quarter as well as for the year. Leasing revenue in commercial real estate business continued to build up throughout the year, except for March 2021 where new lease transactions were temporarily deferred due to the second covid wave induced lockdown.

Max Estates flagship office project, Max Towers has reached more than 90% occupancy levels. The company’s focus now will be on leasing Max House Okhla Phase 1 and smooth and timebound progress of its under construction commercial complex, Max Square and commencement of work on Phase 2 of Max House. Max Estates also continues to actively prospect new commercial land parcels in Delhi-NCR, with a positive bias for Gurgaon to achieve its intent of adding nearly 1-mn sqft per annum to the project pipeline in FY22 and onwards.

MaxVIL’s speciality packaging subsidiary, Max Speciality Films’ revenue crossed Rs 3-billion in Q4 FY21 and Rs 10-billion in FY21, both the highest ever in the firm’s history. This was accompanied by a strong improvement in profitability with EBITDA margin expansion of 730 bps in FY21.

The sustained momentum in revenue and profitability growth in MSFL is on the back of strong demand, improved realisations, better specialty product mix and stable raw material prices. With consistent efforts by the company, working with leading FMCG companies for their specialised packaging needs, MSFL has increased its volume contribution from specialty films to 45% in FY21, up from 42% in FY20.

MSFL recently announced a new CPP (cast polypropylene) line which will expand the total capacity by 7.2 KTPA of CPP. The company has also recently commercialised first of its two new metallizer lines to enhance its speciality product capabilities. With the expansion of the new CPP line, together with the increasing speciality product capabilities through metalliser lines, MSFL is well placed to capture the new growth opportunities, enhancing the scale of the business and sustainably improve its profitability through better product mix.

MSFL expects the strong business momentum to continue in FY22 on the back of strong demand, higher realisations, optimum capacity utilisation and increased contribution from specialty films. All these factors collectively will lead to significant revenue and EBITDA growth. The strong cash flows will be used to fund CPP & second metallizer lines and reduce MSFL’s debt by Rs 1 to 1.25-billion from Rs 3.25-billion.

Sahil Vachani, MD & CEO of MaxVIL, said, “Despite FY21 being a year chequered by pandemic induced uncertainties, both core businesses of real estate and packaging films coped exceptionally well. The specialty packaging films business has delivered superlative performance throughout FY21.”

He added, “Going into FY22, we believe the packaging films business will continue the robust performance on the back of sustained demand for specialty films while the lease rental income portfolio will continue to build up from improving occupancy levels at our projects in CRE business.”

MaxVIL Q4FY21 Financial Highlights (yoy) 

  • Consolidated revenue up 30% to Rs 3,286-million
  • Lease rental income up 41% to Rs 61-million
  • Revenue from packaging films business up 34% to Rs 3,142-million
  • Consolidated EBITDA up 39% to Rs 498-million
  • Consolidated PAT at Rs 336-million, grows over 9x