Oberoi Realty EBITDA surged on 18.2% in 2015 and EBITDA Margin increased slightly on 2.0 pp from 54.5% to 56.4%
30-04-2015 • About Oberoi Realty (
$OBEROIRLTY) • By InTwits
Oberoi Realty reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Oberoi Realty has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.7%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 0 in FY2015, 482 in FY2014, 1,181 in FY2013, 2,659 in FY2012, 1,827 in FY2011
- The company has business model with low profitability: ROIC is at 9.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Oberoi Realty ($OBEROIRLTY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,843 | 8,184 | 10,417 | 7,985 | 9,109 | 14.1% |
| EBITDA | 5,775 | 4,853 | 6,133 | 4,348 | 5,138 | 18.2% |
| Net Income | 5,172 | 4,628 | 5,048 | 3,111 | 3,171 | 1.9% |
Balance Sheet
|
|---|
| Cash | 13,739 | 3 | 2,975 | 4,997 | 2,656 | -46.9% |
| Short Term Debt | 0 | 0 | 0 | 11 | 1,716 | 16,066.7% |
| Long Term Debt | 0 | 0 | 0 | 750 | 7,299 | 873.2% |
Cash flow
|
|---|
| Capex | 1,827 | 2,659 | 1,181 | 482 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -9.1% | -16.9% | 27.3% | -23.4% | 14.1% | |
| EBITDA growth | 21.9% | -16.0% | 26.4% | -29.1% | 18.2% | |
| EBITDA Margin | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% | 2.0% |
| Net Income Margin | 52.5% | 56.6% | 48.5% | 39.0% | 34.8% | -4.1% |
| CAPEX, % of revenue | 18.6% | 32.5% | 11.3% | 6.0% | 0.0% | -6.0% |
| ROIC | 21.3% | 12.9% | 14.8% | 9.4% | 9.4% | 0.0% |
| ROE | 20.1% | 13.1% | 12.8% | 7.3% | 7.0% | -0.2% |
| Net Debt/EBITDA | -2.4x | -0.0x | -0.5x | -1.0x | 1.2x | 2.2x |
Revenue and profitability
Oberoi Realty's Revenue jumped on 14.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign decreased on 4.1 pp from 39.0% to 34.8% in FY2015.
Return on investment
The company operates at low ROIC (9.42%) and ROE (7.02%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from -1.0x to 1.2x in FY2015. Debt jumped on 1,085% in FY2015 while cash dropped on 46.9% in FY2015.
Valuation
Oberoi Realty's trades at EV/EBITDA 18.4x and P/E 27.8x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 18.4x with the industry average at 4.7x.
Management team
Vikas Oberoi is a the company's CEO. Vikas Oberoi has spent 8 years at the company. Oberoi Realty's CFO Saumil Daru has spent 11 years at the company.
Appendix 1: Peers in Realty
Below you can find Oberoi Realty 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 ($LANCORHOL) | 16.6% | -47.4% | -23.9% | 74.0% | |
| |
|---|
| Median (33 companies) | -11.2% | 0.6% | 3.4% | -1.8% | 55.1% |
|---|
| Oberoi Realty ($OBEROIRLTY) | | -16.9% | 27.3% | -23.4% | 14.1% |
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 ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | |
| Pvp Ventures ($PVP) | -644.3% | | 73.2% | 51.1% | |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | |
| Lancor Holdings ($LANCORHOL) | 28.4% | 31.1% | 35.1% | 38.6% | |
| |
|---|
| Median (33 companies) | 23.3% | 19.4% | 13.4% | 19.8% | 26.5% |
|---|
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($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) | 5.3% | 4.7% | 2.3% | 3.5% | 2.6% |
|---|
| Oberoi Realty ($OBEROIRLTY) | 18.6% | 32.5% | 11.3% | 6.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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% | 9.9% |
|---|
| Oberoi Realty ($OBEROIRLTY) | 21.3% | 12.9% | 14.8% | 9.4% | 9.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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 | 5.0x | 6.8x |
|---|
| Oberoi Realty ($OBEROIRLTY) | -2.4x | -0.0x | -0.5x | -1.0x | 1.2x |
