Poddar Developers EBITDA dropped on 42.6% and EBITDA Margin dropped on 16.5 pp from 28.7% to 12.1%
16-05-2016 • About Poddar Developers (
$PODDARDEV) • By InTwits
Poddar Developers reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Poddar Developers is a fast growth stock: FY2016 revenue growth was 35.7%, 5 year revenue CAGR was 48.2% at FY2016 ROIC 7.5%
- EBITDA Margin is quite volatile: 12.1% in FY2016, 28.7% in FY2015, 18.4% in FY2014, 11.2% in FY2013, 19.0% in FY2012
- Poddar Developers has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: ₹0m in FY2016, ₹64m in FY2015, ₹2m in FY2014, ₹7m in FY2013, ₹25m in FY2012
- The company has business model with low profitability: ROIC is 7.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 35.7%. During the last 5 years Revenue growth topped in FY2014 at 153% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.6 pp from 8.6% to 14.1% in FY2016.
Net Income margin decreased on 8.8 pp from 20.4% to 11.5% in FY2016.
Return on investment
The company operates at low ROIC (7.5%) and ROE (7.7%). ROIC dropped on 11.7 pp from 19.1% to 7.5% in FY2016. ROE decreased on 8.0 pp from 15.7% to 7.7% in FY2016.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.1x to 0.033x in FY2016. Debt dropped on 61.6% while cash dropped on 34.7%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 4.4x and was declining since that time.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
The company's trades at EV/EBITDA 34.8x and P/E 36.5x while industy averages are 17.8x and 21.9x. Poddar Developers's EV/(EBITDA-CAPEX) is 34.8x with the industry average at 22.8x.
Financial and operational results
Poddar Developers ($PODDARDEV) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 164 | 270 | 682 | 1,063 | 1,443 | 35.7% |
| EBITDA | 31 | 30 | 126 | 305 | 175 | -42.6% |
| Net Income | -8 | 77 | 79 | 217 | 167 | -23.1% |
Balance Sheet
|
|---|
| Cash | 226 | 208 | 121 | 36 | 24 | -34.7% |
| Short Term Debt | 138 | 229 | 43 | 3 | 0 | -100.0% |
| Long Term Debt | 7 | 112 | 202 | 74 | 29 | -60.0% |
Cash flow
|
|---|
| Capex | 25 | 7 | 2 | 64 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -18.4% | 63.9% | 152.9% | 56.0% | 35.7% | |
| EBITDA growth | 24.2% | -3.7% | 316.4% | 142.6% | -42.6% | |
|
|---|
| EBITDA Margin | 19.0% | 11.2% | 18.4% | 28.7% | 12.1% | -16.5% |
| Net Income Margin | -5.0% | 28.4% | 11.6% | 20.4% | 11.5% | -8.8% |
| CAPEX, % of revenue | 15.4% | 2.7% | 0.3% | 6.0% | 0.0% | |
|
|---|
| ROIC | 3.9% | 2.6% | 12.9% | 19.1% | 7.5% | -11.7% |
| ROE | -1.5% | 13.6% | 12.5% | 15.7% | 7.7% | -8.0% |
| Net Debt/EBITDA | -2.6x | 4.4x | 1.0x | 0.1x | 0.0x | -0.1x |
Peers in Realty
Below you can find Poddar Developers 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($AJMERA) | 21.3% | -61.7% | -1.8% | 109.9% | - |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -3.6% | 3.4% | -4.5% | 11.4% | 29.7% |
|---|
| Poddar Developers ($PODDARDEV) | - | 63.9% | 152.9% | 56.0% | 35.7% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | - |
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | - |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| |
|---|
| Median (43 companies) | 20.1% | 18.1% | 20.1% | 19.4% | 25.8% |
|---|
| Poddar Developers ($PODDARDEV) | 19.0% | 11.2% | 18.4% | 28.7% | 12.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | - |
| |
|---|
| Median (30 companies) | 4.7% | 2.3% | 3.7% | 2.3% | 3.1% |
|---|
| Poddar Developers ($PODDARDEV) | 15.4% | 2.7% | 0.3% | 6.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | - |
| Lancor Holdings ($LANCORHOL) | 18.0% | 11.6% | 19.5% | 17.7% | - |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% |
| Sobha Developers ($SOBHA) | 18.8% | 16.7% | 14.6% | 12.7% | - |
| Arihant Superstructures ($ASL) | 12.2% | 4.9% | 10.6% | 12.0% | - |
| |
|---|
| Median (50 companies) | 5.9% | 5.1% | 5.6% | 6.8% | 8.1% |
|---|
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | 7.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | - |
| B.L.Kashyap And Sons ($BLKASHYAP) | 8.2x | 5.8x | 12.7x | 40.1x | - |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | - |
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | - |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| |
|---|
| Median (37 companies) | 5.3x | 5.1x | 5.0x | 4.0x | 4.7x |
|---|
| Poddar Developers ($PODDARDEV) | -2.6x | 4.4x | 1.0x | 0.1x | 0.0x |
