Parsvnath Developers Net Debt / EBITDA dropped on 5.6x from 14.6x to 9.0x in 2015 while EBITDA jumped on 55.3%
26-05-2015 • About Parsvnath Developers (
$PARSVNATH) • By InTwits
Parsvnath Developers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has potentially unprofitable business model: ROIC is at 5.3%
- It operates with high leverage: Net Debt/EBITDA is 9.0x while industry average is 7.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Parsvnath Developers ($PARSVNATH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,946 | 8,976 | 6,340 | 5,608 | 7,625 | 36.0% |
| EBITDA | 4,503 | 4,219 | 4,312 | 2,091 | 3,247 | 55.3% |
| Net Income | 1,411 | 561 | 712 | 162 | -1,077 | -763.5% |
Balance Sheet
|
|---|
| Cash | 495 | 796 | 1,744 | 892 | 1,820 | 104.0% |
| Short Term Debt | 8,728 | 8,366 | 6,226 | 9,907 | 7,405 | -25.3% |
| Long Term Debt | 11,845 | 14,054 | 15,948 | 21,479 | 23,514 | 9.5% |
Cash flow
|
|---|
| Capex | 1,784 | 1,424 | | 653 | 811 | 24.3% |
Ratios
|
|---|
| Revenue growth | 0.7% | 0.3% | -29.4% | -11.5% | 36.0% | |
| EBITDA growth | 79.2% | -6.3% | 2.2% | -51.5% | 55.3% | |
| EBITDA Margin | 50.3% | 47.0% | 68.0% | 37.3% | 42.6% | 5.3% |
| Net Income Margin | 15.8% | 6.2% | 11.2% | 2.9% | -14.1% | -17.0% |
| CAPEX, % of revenue | 19.9% | 15.9% | | 11.6% | 10.6% | -1.0% |
| ROIC | 9.7% | 8.1% | 8.1% | 3.5% | 5.3% | 1.9% |
| ROE | 5.7% | 2.1% | 2.6% | 0.6% | -4.0% | -4.5% |
| Net Debt/EBITDA | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x | -5.6x |
Revenue and profitability
Parsvnath Developers's Revenue jumped on 36.0% 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 dropped on 17.0 pp from 2.9% to -14.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Parsvnath Developers's CAPEX/Revenue was 10.6% in FY2015. The company's CAPEX/Revenue decreased on 5.2 pp from 15.9% in FY2012 to 10.6% in FY2015.
Return on investment
The company operates at low but positive ROIC (5.33%) and negative ROE (-3.95%). ROIC increased slightly on 1.9 pp from 3.5% to 5.3% in FY2015. ROE decreased on 4.5 pp from 0.59% to -4.0% in FY2015.
Leverage (Debt)
Debt level is 9.0x Net Debt / EBITDA and 9.5x Debt / EBITDA. Net Debt / EBITDA dropped on 5.6x from 14.6x to 9.0x in FY2015. Debt decreased slightly on 1.5% in FY2015 while cash jumped on 104% in FY2015.
Management team
Parsvnath Developers's CEO Sanjeev Kumar Jain has spent 12 years at the company.
Appendix 1: Peers in Realty
Below we provide Parsvnath Developers 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 ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -18.9% | -1.3% | 5.6% | -1.8% | 12.3% |
|---|
| Parsvnath Developers ($PARSVNATH) | | 0.3% | -29.4% | -11.5% | 36.0% |
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% | 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% | 25.3% |
|---|
| Parsvnath Developers ($PARSVNATH) | 50.3% | 47.0% | 68.0% | 37.3% | 42.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($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% |
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | |
| D B Realty ($DBREALTY) | 4.2% | 15.1% | 0.9% | 7.2% | 4.2% |
| |
|---|
| Median (29 companies) | 5.3% | 4.7% | 2.5% | 3.5% | 2.4% |
|---|
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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% | 5.7% | 4.6% | 5.7% | 8.5% |
|---|
| Parsvnath Developers ($PARSVNATH) | 9.7% | 8.1% | 8.1% | 3.5% | 5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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 | |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| Ajmera Realty & Infra India ($AJMERA) | 2.8x | 4.5x | 10.7x | 13.8x | |
| |
|---|
| Median (39 companies) | 3.8x | 5.3x | 5.1x | 4.9x | 4.0x |
|---|
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
