Prajay Engineers Syndicate reports 62.8% revenue growth in FY2015 and 14.4 pp EBITDA Margin growth from -26.6% to -12.1%

31-05-2015 • About Prajay Engineers Syndicate ($PRAENG) • By InTwits

Prajay Engineers Syndicate reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

• The company operates at negative EBITDA Margin: -12.1%
• Prajay Engineers Syndicate motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -3.2% for the sames years0

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Prajay Engineers Syndicate ($PRAENG) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	856	675	958	670	1,091	62.8%
EBITDA	143	26	6	-178	-132
Net Income	-19	-91	-122	-122	-247
Balance Sheet
Cash	16	42	115
Short Term Debt	800	468	44
Long Term Debt	2,221	2,724	2,551
Cash flow
Capex	62	5
Ratios
Revenue growth	-27.9%	-21.1%	42.0%	-30.1%	62.8%
EBITDA growth	5.6%	-81.8%	-78.4%	-3,264.5%	-25.7%
EBITDA Margin	16.7%	3.9%	0.6%	-26.6%	-12.1%	14.4%
Net Income Margin	-2.3%	-13.5%	-12.7%	-18.1%	-22.6%	-4.5%
CAPEX, % of revenue	7.3%	0.8%				0.0%
ROIC	1.0%	-0.1%	-0.3%			0.0%
ROE	-0.3%	-1.3%	-1.8%			0.0%
Net Debt/EBITDA	21.0x	120.7x	440.5x			0.0x

Revenue and profitability

The company's Revenue surged on 62.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 20.7 pp from 17.4% to 38.1% in FY2015.

Net Income marign decreased on 4.5 pp from -18.1% to -22.6% in FY2015.

Appendix 1: Peers in Realty

Below you can find Prajay Engineers Syndicate 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
Sspdl ($SSPDL)		16.2%	-11.8%	-43.4%	326.1%
Orbit Corporation ($ORBITCORP)		-4.2%	-21.9%	-88.0%	275.1%
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 ($PODDARDEV)		-18.4%	63.9%	152.9%	56.0%
Median (34 companies)		0.6%	3.4%	-1.8%	11.4%
Prajay Engineers Syndicate ($PRAENG)		-21.1%	42.0%	-30.1%	62.8%

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
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 ($TCIDEVELOP)					75.9%
Orbit Corporation ($ORBITCORP)	54.1%	42.4%	53.3%	-127.2%	69.8%
Oberoi Realty ($OBEROIRLTY)	58.7%	59.3%	58.9%	54.5%	56.4%
Median (41 companies)	24.3%	20.1%	18.1%	20.1%	22.9%
Prajay Engineers Syndicate ($PRAENG)	16.7%	3.9%	0.6%	-26.6%	-12.1%

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 ($BRIGADE)	42.6%	45.7%	10.7%	17.0%	18.5%
Prestige Estates Projects ($PRESTIGE)	23.3%	37.7%	30.2%	18.8%	11.6%
Parsvnath Developers ($PARSVNATH)	19.9%	15.9%		11.6%	10.6%
Median (31 companies)	5.3%	4.9%	2.5%	3.6%	2.4%

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 ($SOBHA)	12.4%	18.8%	16.7%	14.6%	12.7%
Median (48 companies)	9.4%	5.9%	5.1%	5.6%	6.8%
Prajay Engineers Syndicate ($PRAENG)	1.0%	-0.1%	-0.3%

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 (36 companies)	3.8x	5.1x	4.8x	5.0x	4.0x

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