Prestige Estates Projects EBITDA jumped on 36.6% in 2015 and Revenue surged on 34.2%
30-05-2015 • About Prestige Estates Projects (
$PRESTIGE) • By InTwits
Prestige Estates Projects reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Prestige Estates Projects has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.3%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 151 in FY2015, 3,126 in FY2014, 3,094 in FY2013, 1,110 in FY2012, 3,344 in FY2011
- The company has business model with average profitability: ROIC is at 11.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Prestige Estates Projects ($PRESTIGE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,431 | 10,523 | 19,476 | 25,492 | 34,198 | 34.2% |
| SG&A | | | | | 758 | |
| EBITDA | 3,745 | 2,992 | 5,811 | 7,277 | 9,939 | 36.6% |
| Net Income | 1,667 | 826 | 2,860 | 3,143 | 3,324 | 5.8% |
Balance Sheet
|
|---|
| Cash | 1,019 | 1,427 | 4,587 | 2,849 | 4,849 | 70.2% |
| Short Term Debt | 9,450 | 10,654 | 14,962 | 19,383 | 23,394 | 20.7% |
| Long Term Debt | 5,597 | 6,930 | 10,427 | 12,159 | 17,162 | 41.1% |
Cash flow
|
|---|
| Capex | 3,602 | 3,969 | 5,887 | 4,782 | 3,971 | -17.0% |
Ratios
|
|---|
| Revenue growth | -63.0% | -31.8% | 85.1% | 30.9% | 34.2% | |
| EBITDA growth | 49.3% | -20.1% | 94.2% | 25.2% | 36.6% | |
| EBITDA Margin | 24.3% | 28.4% | 29.8% | 28.5% | 29.1% | 0.5% |
| Net Income Margin | 10.8% | 7.8% | 14.7% | 12.3% | 9.7% | -2.6% |
| SG&A, % of revenue | | | | | 2.2% | 2.2% |
| CAPEX, % of revenue | 23.3% | 37.7% | 30.2% | 18.8% | 11.6% | -7.1% |
| ROIC | 9.6% | 5.9% | 10.5% | 10.6% | 11.5% | 0.9% |
| ROE | 11.6% | 3.9% | 11.7% | 11.0% | 9.8% | -1.2% |
| Net Debt/EBITDA | 3.7x | 5.4x | 3.6x | 3.9x | 3.6x | -0.4x |
Revenue and profitability
Prestige Estates Projects's Revenue jumped on 34.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign decreased on 2.6 pp from 12.3% to 9.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Prestige Estates Projects's CAPEX/Revenue was 11.6% in FY2015. Prestige Estates Projects showed big decline in CAPEX/Revenue of 26.1 pp from 37.7% in FY2012 to 11.6% in FY2015. It's average CAPEX/Revenue for the last three years was 20.2%.
Return on investment
The company operates at low ROIC (11.48%) and ROE (9.78%). ROIC increased slightly on 0.91 pp from 10.6% to 11.5% in FY2015. ROE decreased slightly on 1.2 pp from 11.0% to 9.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 4.1x. Net Debt / EBITDA dropped on 0.4x from 3.9x to 3.6x in FY2015. Debt surged on 28.6% in FY2015 while cash jumped on 70.2% in FY2015.
Appendix 1: Peers in Realty
Below you can find Prestige Estates 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 |
|---|
| Ajmera Realty & Infra India ($AJMERA) | | 21.3% | -61.7% | -1.8% | 109.9% |
| Godrej Properties ($GODREJPROP) | | 70.6% | 34.7% | 13.7% | 56.3% |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Mahindra Lifespace Developers ($MAHLIFE) | | 14.6% | 5.3% | -4.5% | 54.0% |
| Brigade Enterprises ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
| |
|---|
| Median (30 companies) | 36.4% | 0.6% | 3.4% | -4.5% | 10.4% |
|---|
| Prestige Estates Projects ($PRESTIGE) | | -31.8% | 85.1% | 30.9% | 34.2% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hubtown ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | 82.4% |
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | 78.9% |
| Tci Developers ($TCIDEVELOP) | | | | | 75.9% |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% |
| |
|---|
| Median (37 companies) | 23.3% | 19.4% | 13.4% | 19.8% | 22.9% |
|---|
| Prestige Estates Projects ($PRESTIGE) | 24.3% | 28.4% | 29.8% | 28.5% | 29.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| Vipul ($VIPUL) | 3.5% | 5.0% | 1.9% | 3.3% | 9.4% |
| |
|---|
| Median (30 companies) | 5.3% | 4.7% | 2.3% | 3.5% | 2.3% |
|---|
| Prestige Estates Projects ($PRESTIGE) | 23.3% | 37.7% | 30.2% | 18.8% | 11.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | 29.7% | -3.2% | -15.8% | 5.6% | 21.2% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.5% | 10.4% | 11.7% | 6.6% | 14.9% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| |
|---|
| Median (41 companies) | 9.2% | 5.7% | 4.6% | 5.6% | 6.8% |
|---|
| Prestige Estates Projects ($PRESTIGE) | 9.6% | 5.9% | 10.5% | 10.6% | 11.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| B.L.Kashyap And Sons ($BLKASHYAP) | 3.8x | 8.2x | 5.8x | 12.7x | 40.1x |
| Vipul ($VIPUL) | 50.6x | 0.7x | 3.0x | 10.8x | 26.0x |
| Ansal Properties & Infrastructure ($ANSALAPI) | 3.1x | 12.8x | 11.9x | 11.4x | 16.6x |
| Srs Real Infrastructure ($SRSREAL) | 20.3x | 11.7x | 10.0x | 12.9x | 14.7x |
| |
|---|
| Median (33 companies) | 4.2x | 5.1x | 5.1x | 5.0x | 4.2x |
|---|
| Prestige Estates Projects ($PRESTIGE) | 3.7x | 5.4x | 3.6x | 3.9x | 3.6x |
