DB REALTY 2017-18 Annual Report Analysis

Sat, 31 Mar

DB REALTY has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

DB REALTY Income Statement Analysis

• Operating income during the year fell 14.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 234.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 263.5% in FY18 as against 67.0% in FY17.
• Depreciation charges decreased by 45.4% and finance costs increased by 24.5% YoY, respectively.
• Other income grew by 14.0% YoY.
• Net profit for the year grew by 254.2% YoY.
• Net profit margins during the year declined from 57.0% in FY17 to 237.2% in FY18.

DB REALTY Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	1,409	1,199	-14.9%
Other income	Rs m	1,475	1,681	14.0%
Total Revenues	Rs m	2,884	2,880	-0.2%
Gross profit	Rs m	-944	-3,158	234.5%
Depreciation	Rs m	108	59	-45.4%
Interest	Rs m	956	1,190	24.5%
Profit before tax	Rs m	-533	-2,726	411.6%
Tax	Rs m	270	117	-56.8%
Profit after tax	Rs m	-803	-2,843	254.2%
Gross profit margin	%	-67.0	-263.5
Effective tax rate	%	-50.6	-4.3
Net profit margin	%	-57.0	-237.2

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DB REALTY Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 30 billion as compared to Rs 25 billion in FY17, thereby witnessing an increase of 18.2%.
• Long-term debt stood at Rs 12 billion as compared to Rs 11 billion during FY17, a growth of 6.5%.
• Current assets rose 6% and stood at Rs 42 billion, while fixed assets fell 4% and stood at Rs 22 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 65 billion as against Rs 63 billion during FY17, thereby witnessing a growth of 2%.

DB REALTY Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	27,743	25,031	-9.8
Current Liabilities	Rs m	25,239	29,841	18.2
Long-term Debt	Rs m	11,118	11,841	6.5
Total Liabilities	Rs m	63,114	64,563	2.3
Current assets	Rs m	39,808	42,175	5.9
Fixed Assets	Rs m	23,306	22,388	-3.9
Total Assets	Rs m	63,114	64,563	2.3

DB REALTY Cash Flow Statement Analysis

• DB REALTY's cash flow from operating activities (CFO) during FY18 stood at Rs -405 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 221 million from the Rs -1 billion net cash flows seen during FY17.

DB REALTY Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	5,546	-405	-
Cash Flow from Investing Activities	Rs m	-5,880	1,649	-
Cash Flow from Financing Activities	Rs m	-935	-1,024	-
Net Cash Flow	Rs m	-1,269	221	-

Current Valuations for DB REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.7, an decline from the EPS of Rs -3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 45.6, stands at -13.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at -5.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	5.8	4.9
TTM Earnings per share	Rs	-3.3	-11.7
Diluted earnings per share	Rs	-3.1	-11.0
Price to Cash Flow	x	-15.5	-5.2
TTM P/E ratio	x	753.4	-13.5
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	11,853	14,377
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for DB REALTY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 1.6x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -1.3x during FY18, from 0.4x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -11.4% during FY18, from -2.9% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -4.2% during FY18, from 1.1% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -2.6% during FY18, from 0.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.6	1.4
Debtors’ Days	Days	2,029	1,707
Interest coverage	x	0.4	-1.3
Debt to equity ratio	x	0.4	0.5
Return on assets	%	0.2	-2.6
Return on equity	%	-2.9	-11.4
Return on capital employed	%	1.1	-4.2

To see how DB REALTY has performed over the last 5 years, please visit here.

DB REALTY Share Price Performance

Over the last one year, DB REALTY share price has moved up from Rs 41.5 to Rs 45.6, registering a gain of Rs 4.1 or around 9.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for DB REALTY and quarterly results for DB REALTY)

Read: Latest Annual Report Analysis of DB REALTY