Parsvnath Developers Net Debt / EBITDA jumped on 27.3x from 9.0x to 36.3x in 2016 while EBITDA dropped on 72.5%
24-05-2016 • About Parsvnath Developers (
$PARSVNATH) • By InTwits
Parsvnath Developers reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Parsvnath Developers is a company in decline: FY2016 revenue growth was -48.6%, 5 years revenue CAGR was -15.2%
- EBITDA Margin is quite volatile: 22.8% in FY2016, 42.6% in FY2015, 37.3% in FY2014, 68.0% in FY2013, 47.0% in FY2012
- The company has potentially unprofitable business model: ROIC is 1.0%
- It operates with high leverage: Net Debt/EBITDA is 36.3x while industry average is 7.8x
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 dropped on 48.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.8 pp from 42.6% to 22.8% in FY2016.
Net Income margin increased on 5.0 pp from -14.1% to -9.1% in FY2016.
Investments (CAPEX, working capital and M&A)
Parsvnath Developers's CAPEX/Revenue was 15.6% in FY2016. Parsvnath Developers's CAPEX/Revenue surged on 15.6 pp from in FY2013 to 15.6% in FY2016. It's average CAPEX/Revenue for the last three years was 12.6%. The company invested a big chunk of EBITDA (68.6%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (1.0%) and negative ROE (-1.3%). ROIC decreased on 4.3 pp from 5.3% to 1.0% in FY2016. ROE increased on 2.6 pp from -4.0% to -1.3% in FY2016. ROIC declined at -1.7 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 36.3x and Debt / EBITDA is 36.6x. Net Debt / EBITDA jumped on 27.3x from 9.0x to 36.3x in FY2016. Debt increased on 5.6% while cash dropped on 83.1%.
Parsvnath Developers has short term refinancing risk: cash is only 4.7% of short term debt.
Management team
Sanjeev Kumar Jain is a the company's CEO. Sanjeev Kumar Jain has spent 14 years with the company.
Financial and operational results
Parsvnath Developers ($PARSVNATH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,976 | 6,340 | 5,608 | 7,625 | 3,920 | -48.6% |
| EBITDA | 4,219 | 4,312 | 2,091 | 3,247 | 892 | -72.5% |
| Net Income | 561 | 712 | 162 | -1,077 | -356 | |
Balance Sheet
|
|---|
| Cash | 796 | 1,744 | 892 | 1,820 | 308 | -83.1% |
| Short Term Debt | 8,366 | 6,226 | 9,907 | 7,405 | 6,527 | -11.9% |
| Long Term Debt | 14,054 | 15,948 | 21,479 | 23,514 | 26,122 | 11.1% |
Cash flow
|
|---|
| Capex | 1,424 | | 653 | 811 | 612 | -24.6% |
Ratios
|
|---|
| Revenue growth | 0.3% | -29.4% | -11.5% | 36.0% | -48.6% | |
| EBITDA growth | -6.3% | 2.2% | -51.5% | 55.3% | -72.5% | |
|
|---|
| EBITDA Margin | 47.0% | 68.0% | 37.3% | 42.6% | 22.8% | -19.8% |
| Net Income Margin | 6.2% | 11.2% | 2.9% | -14.1% | -9.1% | 5.0% |
| CAPEX, % of revenue | 15.9% | | 11.6% | 10.6% | 15.6% | 5.0% |
|
|---|
| ROIC | 8.1% | 8.1% | 3.5% | 5.3% | 1.0% | -4.3% |
| ROE | 2.1% | 2.6% | 0.6% | -4.0% | -1.3% | 2.6% |
| Net Debt/EBITDA | 5.1x | 4.7x | 14.6x | 9.0x | 36.3x | 27.3x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sspdl ($SSPDL) | 16.2% | -11.8% | -43.4% | 326.1% | - |
| Orbit Corporation ($ORBITCORP) | - | -21.9% | -88.0% | 275.1% | -98.6% |
| Ajmera Realty & Infra India ($AJMERA) | - | -61.7% | -1.8% | 109.9% | 92.0% |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -5.0% | 5.6% | -1.8% | 11.4% | 17.9% |
|---|
| Parsvnath Developers ($PARSVNATH) | - | -29.4% | -11.5% | 36.0% | -48.6% |
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) | 19.4% | 13.4% | 19.8% | 19.4% | 22.0% |
|---|
| Parsvnath Developers ($PARSVNATH) | 47.0% | 68.0% | 37.3% | 42.6% | 22.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Vipul ($VIPUL) | 5.0% | 1.9% | 3.3% | 9.4% | - |
| |
|---|
| Median (30 companies) | 4.7% | 2.5% | 3.5% | 2.3% | 1.9% |
|---|
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | 15.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | 27.1% |
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | 7.5% |
| Lancor Holdings ($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% | 9.0% |
| |
|---|
| Median (50 companies) | 5.7% | 4.6% | 5.7% | 6.8% | 7.2% |
|---|
| Parsvnath Developers ($PARSVNATH) | 8.1% | 8.1% | 3.5% | 5.3% | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($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 | 4.9x | 4.0x | 4.2x |
|---|
| Parsvnath Developers ($PARSVNATH) | 5.1x | 4.7x | 14.6x | 9.0x | 36.3x |
