D B Realty Net Debt / EBITDA jumped on 40.8x from 14.0x to 54.8x in 2015 while Revenue dropped on 17.2%
26-05-2015 • About D B Realty (
$DBREALTY) • By InTwits
D B Realty reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- D B Realty is a company in decline: FY2015 revenue growth was -17.2%, 5 years revenue CAGR was -3.1%
- EBITDA Margin is quite volatile: 8.2% in FY2015, 14.1% in FY2014, 1.3% in FY2013, 3.5% in FY2012, 29.0% in FY2011
- D B Realty has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's in pair with industry average of 11.7%.
- CAPEX is quite volatile: 111 in FY2015, 228 in FY2014, 29.8 in FY2013, 894 in FY2012, 531 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 54.8x while industry average is 7.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
D B Realty ($DBREALTY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,684 | 5,909 | 3,408 | 3,182 | 2,634 | -17.2% |
| EBITDA | 3,673 | 207 | 44 | 448 | 216 | -51.7% |
| Net Income | 2,987 | 864 | 33 | 115 | 6 | -95.1% |
Balance Sheet
|
|---|
| Cash | 514 | 311 | 277 | 313 | 90 | -71.1% |
| Short Term Debt | 2,924 | 1,541 | 2,860 | 3,567 | 5,500 | 54.2% |
| Long Term Debt | 1,706 | 1,515 | 3,312 | 3,009 | 6,454 | 114.5% |
Cash flow
|
|---|
| Capex | 531 | 894 | 30 | 228 | 111 | -51.4% |
Ratios
|
|---|
| Revenue growth | 312.3% | -53.4% | -42.3% | -6.6% | -17.2% | |
| EBITDA growth | 0.0% | -94.4% | -79.0% | 928.8% | -51.7% | |
| EBITDA Margin | 29.0% | 3.5% | 1.3% | 14.1% | 8.2% | -5.9% |
| Net Income Margin | 23.5% | 14.6% | 1.0% | 3.6% | 0.2% | -3.4% |
| CAPEX, % of revenue | 4.2% | 15.1% | 0.9% | 7.2% | 4.2% | -3.0% |
| ROIC | 9.5% | 0.3% | -0.2% | 0.9% | 0.2% | -0.7% |
| ROE | 9.4% | 2.6% | 0.1% | 0.3% | 0.0% | -0.3% |
| Net Debt/EBITDA | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x | 40.8x |
Revenue and profitability
The company's Revenue dropped on 17.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 14.1% to 8.2% in FY2015.
Net Income marign decreased on 3.4 pp from 3.6% to 0.22% in FY2015.
Capital expenditures (CAPEX) and working capital investments
D B Realty's CAPEX/Revenue was 4.2% in FY2015. D B Realty showed big decline in CAPEX/Revenue of 10.9 pp from 15.1% in FY2012 to 4.2% in FY2015. Average CAPEX/Revenue for the last three years was 4.1%.Battling declining revenue the company invested a large share of EBITDA (51.1%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (0.19%) and ROE (0.02%). ROIC decreased slightly on 0.70 pp from 0.89% to 0.19% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 54.8x Net Debt / EBITDA and 55.2x Debt / EBITDA. Net Debt / EBITDA jumped on 40.8x from 14.0x to 54.8x in FY2015. Debt jumped on 81.8% in FY2015 while cash dropped on 71.1% in FY2015.
Valuation
The company's trades at EV/EBITDA 133.3x and P/E 2,992.8x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 272.8x with the industry average at 4.7x.
Appendix 1: Peers in Realty
Below we provide D B Realty 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 ($SUNTECK) | | -16.0% | 77.7% | 2,963.6% | -67.3% |
| Nitesh Estates ($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 ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -18.9% | 0.6% | 5.6% | -1.8% | 14.1% |
|---|
| D B Realty ($DBREALTY) | | -53.4% | -42.3% | -6.6% | -17.2% |
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% | 20.1% | 18.1% | 20.1% | 28.7% |
|---|
| D B Realty ($DBREALTY) | 29.0% | 3.5% | 1.3% | 14.1% | 8.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($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% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | |
| |
|---|
| Median (29 companies) | 5.5% | 4.7% | 2.6% | 3.5% | 2.4% |
|---|
| D B Realty ($DBREALTY) | 4.2% | 15.1% | 0.9% | 7.2% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | 6.8% |
| 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 ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
| |
|---|
| Median (50 companies) | 9.2% | 5.9% | 5.1% | 5.7% | 8.5% |
|---|
| D B Realty ($DBREALTY) | 9.5% | 0.3% | -0.2% | 0.9% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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 ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
| Ajmera Realty & Infra India ($AJMERA) | 2.8x | 4.5x | 10.7x | 13.8x | |
| |
|---|
| Median (39 companies) | 4.2x | 5.1x | 4.8x | 4.9x | 4.0x |
|---|
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
