D B Realty Net Debt / EBITDA dropped on 3.7x from 54.8x to 51.1x in 2016 and Revenue dropped on 17.2%
28-05-2016 • About D B Realty (
$DBREALTY) • By InTwits
D B Realty reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- D B Realty is a company in decline: FY2016 revenue growth was -17.2%, 5 years revenue CAGR was -29.7%
- EBITDA Margin is quite volatile: 12.4% in FY2016, 8.2% in FY2015, 14.1% in FY2014, 1.3% in FY2013, 3.5% in FY2012
- D B Realty has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's in pair with industry average of 11.3%
- CAPEX is quite volatile: ₹100m in FY2016, ₹111m in FY2015, ₹228m in FY2014, ₹30m in FY2013, ₹894m in FY2012
- The company has potentially unprofitable business model: ROIC is 0.2%
- It operates with high leverage: Net Debt/EBITDA is 51.1x while industry average is 10.4x
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 17.2%. During the last 5 years Revenue growth topped in FY2014 at -6.6% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.1 pp from 8.2% to 12.4% in FY2016.
Net Income margin dropped on 11.6 pp from 0.22% to -11.4% in FY2016. Net Income margin declined at -5.3 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 D B Realty had CAPEX/Revenue of 4.6%. The company showed CAPEX/Revenue growth of 3.7 pp from 0.87% in FY2013 to 4.6% in FY2016. Average CAPEX/Revenue for the last three years was 5.3%.
Return on investment
The company operates at low but positive ROIC (0.2%) and negative ROE (-0.7%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.75 pp from 0.017% to -0.73% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 51.1x and Debt / EBITDA is 52.2x. Net Debt / EBITDA dropped on 3.7x from 54.8x to 51.1x in FY2016. Debt surged on 17.6% while cash jumped on 211%.
D B Realty has short term refinancing risk: cash is only 8.6% of short term debt.
Financial and operational results
D B Realty ($DBREALTY) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,909 | 3,408 | 3,182 | 2,634 | 2,180 | -17.2% |
| EBITDA | 207 | 44 | 448 | 216 | 269 | 24.5% |
| Net Income | 864 | 33 | 115 | 6 | -249 | -4,483.8% |
Balance Sheet
|
|---|
| Cash | 311 | 277 | 313 | 90 | 281 | 210.5% |
| Short Term Debt | 1,541 | 2,860 | 3,567 | 5,500 | 3,284 | -40.3% |
| Long Term Debt | 1,515 | 3,312 | 3,009 | 6,454 | 10,769 | 66.9% |
Cash flow
|
|---|
| Capex | 894 | 30 | 228 | 111 | 100 | -9.4% |
Ratios
|
|---|
| Revenue growth | -53.4% | -42.3% | -6.6% | -17.2% | -17.2% | |
| EBITDA growth | -94.4% | -79.0% | 928.8% | -51.7% | 24.5% | |
|
|---|
| EBITDA Margin | 3.5% | 1.3% | 14.1% | 8.2% | 12.4% | 4.1% |
| Net Income Margin | 14.6% | 1.0% | 3.6% | 0.2% | -11.4% | -11.6% |
| CAPEX, % of revenue | 15.1% | 0.9% | 7.2% | 4.2% | 4.6% | 0.4% |
|
|---|
| ROIC | 0.3% | -0.2% | 0.9% | 0.2% | 0.2% | 0.0% |
| ROE | 2.6% | 0.1% | 0.3% | 0.0% | -0.7% | -0.8% |
| Net Debt/EBITDA | 13.2x | 135.4x | 14.0x | 54.8x | 51.1x | -3.7x |
Peers in Realty
Below we provide D B Realty 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 ($SSPDL) | - | -11.8% | -43.4% | 326.1% | -48.8% |
| Orbit Corporation ($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 ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -16.0% | 5.6% | -1.8% | 13.2% | 3.1% |
|---|
| D B Realty ($DBREALTY) | - | -42.3% | -6.6% | -17.2% | -17.2% |
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 ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | 68.4% |
| Tci Developers ($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% | 22.6% | 20.1% |
|---|
| D B Realty ($DBREALTY) | 3.5% | 1.3% | 14.1% | 8.2% | 12.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($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% | 15.6% |
| |
|---|
| Median (30 companies) | 4.7% | 2.6% | 3.5% | 2.3% | 2.8% |
|---|
| D B Realty ($DBREALTY) | 15.1% | 0.9% | 7.2% | 4.2% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($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) | 5.9% | 5.1% | 5.7% | 6.8% | 7.2% |
|---|
| D B Realty ($DBREALTY) | 0.3% | -0.2% | 0.9% | 0.2% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | 8.2x | 5.8x | 12.7x | 40.1x | 3.3x |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | - |
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | 13.3x |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| Prozone Intu Properties ($PROZONINTU) | - | 8.6x | 13.0x | 11.9x | 8.7x |
| |
|---|
| Median (37 companies) | 5.1x | 4.8x | 4.9x | 4.0x | 4.1x |
|---|
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | 51.1x |
