Puravankara Projects revenue surged on 27.8% in 2015 while EBITDA Margin dropped on 12.5 pp from 36.5% to 24.1%
15-05-2015 • About Puravankara Projects (
$PURVA) • By InTwits
Puravankara Projects reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 24.1% in FY2015 vs. 36.5% in FY2014 vs. 48.9% in FY2011
- Puravankara Projects has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 350 in FY2015, 141 in FY2014, 216 in FY2013, 149 in FY2012, 137 in FY2011
- The company has business model with low profitability: ROIC is at 9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Puravankara Projects ($PURVA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,935 | 8,097 | 12,320 | 12,981 | 16,586 | 27.8% |
| EBITDA | 2,900 | 3,904 | 5,796 | 4,740 | 3,989 | -15.8% |
| Net Income | 1,179 | 1,357 | 2,434 | 1,600 | 1,327 | -17.0% |
Balance Sheet
|
|---|
| Cash | 862 | 698 | 2,275 | 1,655 | 2,171 | 31.1% |
| Short Term Debt | 6,670 | 10,451 | 8,881 | 9,938 | 7,279 | -26.8% |
| Long Term Debt | 5,172 | 3,039 | 8,978 | 7,030 | 10,652 | 51.5% |
Cash flow
|
|---|
| Capex | 137 | 149 | 216 | 141 | 350 | 148.7% |
Ratios
|
|---|
| Revenue growth | -70.3% | 36.4% | 52.2% | 5.4% | 27.8% | |
| EBITDA growth | 71.3% | 34.6% | 48.5% | -18.2% | -15.8% | |
| EBITDA Margin | 48.9% | 48.2% | 47.1% | 36.5% | 24.1% | -12.5% |
| Net Income Margin | 19.9% | 16.8% | 19.8% | 12.3% | 8.0% | -4.3% |
| CAPEX, % of revenue | 2.3% | 1.8% | 1.8% | 1.1% | 2.1% | 1.0% |
| ROIC | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% | -2.6% |
| ROE | 7.7% | 8.3% | 13.6% | 7.9% | 6.0% | -1.9% |
| Net Debt/EBITDA | 3.8x | 3.3x | 2.7x | 3.2x | 4.0x | 0.7x |
Revenue and profitability
Puravankara Projects's Revenue surged on 27.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.9 pp from 3.9% to 7.8% in FY2015.
Net Income marign decreased on 4.3 pp from 12.3% to 8.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.1% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at low ROIC (9.69%) and ROE (5.99%). ROIC decreased on 2.6 pp from 12.3% to 9.7% in FY2015. ROE decreased slightly on 1.9 pp from 7.9% to 6.0% in FY2015.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 3.2x to 4.0x in FY2015. Debt increased on 5.7% in FY2015 while cash surged on 31.1% in FY2015.
Valuation
Puravankara Projects's trades at EV/EBITDA 8.3x and P/E 13.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 9.1x with the industry average at 4.7x.
Management team
Ashish Ravi Puravankara is a the company's CEO. Ashish Ravi Puravankara has spent 3 years at the company.
Appendix 1: Peers in Realty
Below you can find Puravankara Projects 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) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Lancor Holdings ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -12.6% | -1.6% | 3.4% | -4.5% | 14.1% |
|---|
| Puravankara Projects ($PURVA) | | 36.4% | 52.2% | 5.4% | 27.8% |
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% | 78.9% |
| 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% | 28.7% |
|---|
| Puravankara Projects ($PURVA) | 48.9% | 48.2% | 47.1% | 36.5% | 24.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($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% | 2.6% | 3.7% | 1.7% |
|---|
| Puravankara Projects ($PURVA) | 2.3% | 1.8% | 1.8% | 1.1% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| The Phoenix Mills ($PHOENIXLTD) | 4.5% | 4.9% | 5.4% | 11.1% | |
| |
|---|
| Median (50 companies) | 9.2% | 5.7% | 4.6% | 5.6% | 9.4% |
|---|
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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 | 2.9x |
|---|
| Puravankara Projects ($PURVA) | 3.8x | 3.3x | 2.7x | 3.2x | 4.0x |
