Godrej Properties revenue jumped on 56.3% in 2015 while EBITDA Margin dropped on 10.0 pp from 24.0% to 14.0%
30-04-2015 • About Godrej Properties (
$GODREJPROP) • By InTwits
Godrej Properties reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Godrej Properties has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: 121 in FY2015, 609 in FY2014, 210 in FY2013, 217 in FY2012, 238 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is 6.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Godrej Properties ($GODREJPROP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,515 | 7,701 | 10,371 | 11,792 | 18,431 | 56.3% |
| Gross Profit | 1,275 | 1,917 | 3,456 | 3,411 | 3,567 | 4.6% |
| EBITDA | 1,051 | 1,580 | 2,858 | 2,827 | 2,572 | -9.0% |
| Net Income | 1,309 | 979 | 1,384 | 1,594 | 1,909 | 19.7% |
Balance Sheet
|
|---|
| Cash | 179 | 721 | 573 | 8,710 | 6,954 | -20.2% |
| Short Term Debt | 7,320 | 9,587 | 13,023 | 22,878 | 29,194 | 27.6% |
| Long Term Debt | 1,849 | 9,746 | 3,757 | 2,861 | 5,671 | 98.2% |
Cash flow
|
|---|
| Capex | 238 | 217 | 210 | 609 | 121 | -80.1% |
Ratios
|
|---|
| Revenue growth | -80.4% | 70.6% | 34.7% | 13.7% | 56.3% | |
| EBITDA growth | 18.7% | 50.3% | 80.9% | -1.1% | -9.0% | |
| Gross Margin | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% | -9.6% |
| EBITDA Margin | 23.3% | 20.5% | 27.6% | 24.0% | 14.0% | -10.0% |
| Net Income Margin | 29.0% | 12.7% | 13.3% | 13.5% | 10.4% | -3.2% |
| CAPEX, % of revenue | 5.3% | 2.8% | 2.0% | 5.2% | 0.7% | -4.5% |
| ROIC | 6.0% | 5.9% | 8.5% | 7.1% | 4.9% | -2.2% |
| ROE | 15.1% | 8.3% | 9.6% | 9.9% | 10.5% | 0.6% |
| Net Debt/EBITDA | 8.6x | 11.8x | 5.7x | 6.0x | 10.9x | 4.8x |
Revenue and profitability
Godrej Properties's Revenue surged on 56.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 2.0 pp from 14.3% to 12.4% in FY2015.
Gross Margin decreased on 9.6 pp from 28.9% to 19.4% in FY2015.
Net Income marign decreased on 3.2 pp from 13.5% to 10.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.66% in FY2015. The company's CAPEX/Revenue decreased on 2.2 pp from 2.8% in FY2012 to 0.66% in FY2015. It's average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (4.87%) and ROE (10.49%). ROIC decreased on 2.2 pp from 7.1% to 4.9% in FY2015. ROE increased slightly on 0.59 pp from 9.9% to 10.5% in FY2015.
Leverage (Debt)
Debt level is 10.9x Net Debt / EBITDA and 13.6x Debt / EBITDA. Net Debt / EBITDA jumped on 4.8x from 6.0x to 10.9x in FY2015. Debt surged on 35.5% in FY2015 while cash dropped on 20.2% in FY2015.
Valuation
The company's trades at EV/EBITDA 29.6x and P/E 25.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 31.0x with the industry average at 4.7x.
Management team
Godrej Properties's CEO is Pirojsha Adi Godrej. Pirojsha Adi Godrej has 6 years tenure at the company.
Appendix 1: Peers in Realty
Below we provide Godrej Properties benchmarking against other companies in Realty industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | -94.4% | -16.0% | 77.7% | 2,963.6% | |
| Nitesh Estates ($NITESHEST) | -63.3% | -6.3% | -28.7% | 259.1% | |
| The Phoenix Mills ($PHOENIXLTD) | -89.4% | 87.7% | 19.1% | 208.3% | |
| Poddar Developers ($PODDARDEV) | -82.6% | -18.4% | 63.9% | 152.9% | |
| Lancor Holdings ($LANCORHOL) | 16.6% | -47.4% | -23.9% | 74.0% | |
| |
|---|
| Median (33 companies) | -11.2% | -1.6% | 3.4% | -4.5% | 34.0% |
|---|
| Godrej Properties ($GODREJPROP) | | 70.6% | 34.7% | 13.7% | 56.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | |
| Hubtown ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| Pvp Ventures ($PVP) | -644.3% | | 73.2% | 51.1% | |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | |
| |
|---|
| Median (33 companies) | 24.3% | 19.4% | 13.4% | 19.8% | 47.7% |
|---|
| Godrej Properties ($GODREJPROP) | 23.3% | 20.5% | 27.6% | 24.0% | 14.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | |
| Prestige Estates Projects ($PRESTIGE) | 23.3% | 37.7% | 30.2% | 18.8% | |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | |
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | |
| |
|---|
| Median (29 companies) | 5.5% | 4.9% | 2.6% | 3.5% | 2.3% |
|---|
| Godrej Properties ($GODREJPROP) | 5.3% | 2.8% | 2.0% | 5.2% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | |
| |
|---|
| Median (50 companies) | 9.4% | 5.7% | 4.6% | 5.6% | 12.2% |
|---|
| Godrej Properties ($GODREJPROP) | 6.0% | 5.9% | 8.5% | 7.1% | 4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 4.8x | 4.9x | 2.0x |
|---|
| Godrej Properties ($GODREJPROP) | 8.6x | 11.8x | 5.7x | 6.0x | 10.9x |
