INDIABULLS REAL EST 2017-18 Annual Report Analysis

Sat, 31 Mar

INDIABULLS REAL EST 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.

INDIABULLS REAL EST Income Statement Analysis

• Operating income during the year rose 94.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 413.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 73.5% in FY18 as against 27.8% in FY17.
• Depreciation charges increased by 35.1% and finance costs increased by 32.7% YoY, respectively.
• Other income declined by 56.3% YoY.
• Net profit for the year grew by 567.0% YoY.
• Net profit margins during the year grew from 15.3% in FY17 to 52.5% in FY18.

INDIABULLS REAL EST Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	23,203	45,027	94.1%
Other income	Rs m	5,240	2,292	-56.3%
Total Revenues	Rs m	28,443	47,318	66.4%
Gross profit	Rs m	6,454	33,108	413.0%
Depreciation	Rs m	714	965	35.1%
Interest	Rs m	5,608	7,442	32.7%
Profit before tax	Rs m	5,371	26,992	402.6%
Tax	Rs m	1,826	3,348	83.4%
Profit after tax	Rs m	3,545	23,644	567.0%
Gross profit margin	%	27.8	73.5
Effective tax rate	%	34.0	12.4
Net profit margin	%	15.3	52.5

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INDIABULLS REAL EST Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 126 billion as compared to Rs 54 billion in FY17, thereby witnessing an increase of 132.5%.
• Long-term debt down at Rs 30 billion as compared to Rs 75 billion during FY17, a fall of 60.0%.
• Current assets rose 12% and stood at Rs 151 billion, while fixed assets fell 16% and stood at Rs 39 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 191 billion as against Rs 182 billion during FY17, thereby witnessing a growth of 5%.

INDIABULLS REAL EST Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	40,430	39,933	-1.2
Current Liabilities	Rs m	54,393	126,486	132.5
Long-term Debt	Rs m	74,917	30,000	-60.0
Total Liabilities	Rs m	181,896	190,836	4.9
Current assets	Rs m	134,807	151,391	12.3
Fixed Assets	Rs m	47,088	39,445	-16.2
Total Assets	Rs m	181,896	190,836	4.9

INDIABULLS REAL EST Cash Flow Statement Analysis

• INDIABULLS REAL EST's cash flow from operating activities (CFO) during FY18 stood at Rs -9 billion 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 21 billion, an improvement of 347% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 13 billion from the Rs -7 billion net cash flows seen during FY17.

INDIABULLS REAL EST 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	6,394	-8,905	-
Cash Flow from Investing Activities	Rs m	-8,748	2,218	-
Cash Flow from Financing Activities	Rs m	-8,337	20,573	-
Net Cash Flow	Rs m	-7,349	13,215	-

Current Valuations for INDIABULLS REAL EST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.8, an improvement from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 181.1, stands at 4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 3.4 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	48.5	94.9
TTM Earnings per share	Rs	7.4	49.8
Diluted earnings per share	Rs	6.5	43.6
Price to Cash Flow	x	11.1	3.4
TTM P/E ratio	x	11.9	4.9
Price / Book Value ratio	x	0.9	2.1
Market Cap	Rs m	37,735	84,563
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDIABULLS REAL EST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY18, from 2.5x 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 improved and stood at 4.6x during FY18, from 2.0x 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 improved and stood at 59.2% during FY18, from 8.8% 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 improved and stood at 49.2% during FY18, from 9.5% 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 improved and stood at 16.3% during FY18, from 5.0% 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	2.5	1.2
Debtors’ Days	Days	6,016	12
Interest coverage	x	2.0	4.6
Debt to equity ratio	x	1.9	0.8
Return on assets	%	5.0	16.3
Return on equity	%	8.8	59.2
Return on capital employed	%	9.5	49.2

To see how INDIABULLS REAL EST has performed over the last 5 years, please visit here.

INDIABULLS REAL EST Share Price Performance

Over the last one year, INDIABULLS REAL EST share price has moved up from Rs 87.4 to Rs 181.1, registering a gain of Rs 93.7 or around 107.2%.

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 INDIABULLS REAL EST and quarterly results for INDIABULLS REAL EST)

Read: Latest Annual Report Analysis of INDIABULLS REAL EST