Mahindra Lifespace Developers reports 165% Net Income growth and 54.0% Revenue growth
30-04-2015 • About Mahindra Lifespace Developers (
$MAHLIFE) • By InTwits
Mahindra Lifespace Developers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mahindra Lifespace Developers has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 1.5%.
- CAPEX is quite volatile: 494 in FY2015, 301 in FY2014, 265 in FY2013, 67.7 in FY2012, 281 in FY2011
- The company has highly profitable business model: ROIC is at 14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mahindra Lifespace Developers ($MAHLIFE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,119 | 7,013 | 7,383 | 7,053 | 10,861 | 54.0% |
| EBITDA | 1,767 | 1,916 | 2,427 | 1,714 | 4,243 | 147.5% |
| Net Income | 1,082 | 1,191 | 1,414 | 1,006 | 2,662 | 164.5% |
Balance Sheet
|
|---|
| Cash | 2,283 | 1,323 | 1,228 | 571 | 672 | 17.5% |
| Short Term Debt | 371 | 136 | 2,033 | 505 | 1,204 | 138.3% |
| Long Term Debt | 5,070 | 4,916 | 5,749 | 11,972 | 11,171 | -6.7% |
Cash flow
|
|---|
| Capex | 281 | 68 | 265 | 301 | 494 | 64.3% |
Ratios
|
|---|
| Revenue growth | -51.5% | 14.6% | 5.3% | -4.5% | 54.0% | |
| EBITDA growth | 57.9% | 8.4% | 26.7% | -29.4% | 147.5% | |
| EBITDA Margin | 28.9% | 27.3% | 32.9% | 24.3% | 39.1% | 14.8% |
| Net Income Margin | 17.7% | 17.0% | 19.1% | 14.3% | 24.5% | 10.2% |
| CAPEX, % of revenue | 4.6% | 1.0% | 3.6% | 4.3% | 4.5% | 0.3% |
| ROIC | 10.5% | 10.4% | 11.7% | 6.6% | 14.9% | 8.3% |
| ROE | 10.5% | 10.7% | 11.5% | 7.9% | 19.5% | 11.6% |
| Net Debt/EBITDA | 1.8x | 1.9x | 2.7x | 6.9x | 2.8x | -4.2x |
Revenue and profitability
The company's Revenue surged on 54.0% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.8 pp from 24.3% to 39.1% in FY2015.
Net Income marign jumped on 10.2 pp from 14.3% to 24.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 4.5%. Mahindra Lifespace Developers's CAPEX/Revenue increased on 3.6 pp from 0.97% in FY2012 to 4.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at good ROIC (14.92%) and ROE (19.45%). ROIC increased on 8.3 pp from 6.6% to 14.9% in FY2015. ROE surged on 11.6 pp from 7.9% to 19.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 4.2x from 6.9x to 2.8x in FY2015. Debt decreased slightly on 0.82% in FY2015 while cash jumped on 17.5% in FY2015.
Management team
Anita Arjundas is a Mahindra Lifespace Developers's CEO. Anita Arjundas has spent 9 years at the company.
Appendix 1: Peers in Realty
Below you can find Mahindra Lifespace Developers benchmarking vs. other companies in Realty industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($LANCORHOL) | 16.6% | -47.4% | -23.9% | 74.0% | |
| |
|---|
| Median (33 companies) | -11.2% | -1.6% | 3.6% | -1.8% | 35.2% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | | 14.6% | 5.3% | -4.5% | 54.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($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) | 23.3% | 19.4% | 13.4% | 19.8% | 35.2% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 28.9% | 27.3% | 32.9% | 24.3% | 39.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($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% | 2.3% | 3.5% | 0.3% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 4.6% | 1.0% | 3.6% | 4.3% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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) | 9.2% | 5.7% | 4.6% | 5.6% | 7.1% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 10.5% | 10.4% | 11.7% | 6.6% | 14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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) | 4.2x | 5.3x | 5.1x | 4.9x | 6.0x |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 1.8x | 1.9x | 2.7x | 6.9x | 2.8x |
