INDIABULLS REAL EST 2018-19 Annual Report Analysis

Sun, 31 Mar

INDIABULLS REAL EST has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

INDIABULLS REAL EST Income Statement Analysis

• Operating income during the year rose 9.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 68.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.1% in FY19 as against 73.5% in FY18.
• Depreciation charges decreased by 81.9% and finance costs decreased by 37.6% YoY, respectively.
• Other income grew by 21.8% YoY.
• Net profit for the year declined by 78.8% YoY.
• Net profit margins during the year declined from 52.5% in FY18 to 10.1% in FY19.

INDIABULLS REAL EST Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	45,027	49,439	9.8%
Other income	Rs m	2,292	2,790	21.8%
Total Revenues	Rs m	47,318	52,229	10.4%
Gross profit	Rs m	33,108	10,425	-68.5%
Depreciation	Rs m	965	174	-81.9%
Interest	Rs m	7,442	4,643	-37.6%
Profit before tax	Rs m	26,992	8,398	-68.9%
Tax	Rs m	3,348	3,395	1.4%
Profit after tax	Rs m	23,644	5,003	-78.8%
Gross profit margin	%	73.5	21.1
Effective tax rate	%	12.4	40.4
Net profit margin	%	52.5	10.1

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INDIABULLS REAL EST Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 85 billion as compared to Rs 126 billion in FY18, thereby witnessing an decrease of -33.0%.
• Long-term debt stood at Rs 34 billion as compared to Rs 30 billion during FY18, a growth of 13.5%.
• Current assets fell 20% and stood at Rs 122 billion, while fixed assets fell 14% and stood at Rs 34 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 156 billion as against Rs 191 billion during FY18, thereby witnessing a fall of 18%.

INDIABULLS REAL EST Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	39,933	39,773	-0.4
Current Liabilities	Rs m	126,486	84,695	-33.0
Long-term Debt	Rs m	30,000	34,053	13.5
Total Liabilities	Rs m	190,836	155,781	-18.4
Current assets	Rs m	151,391	121,724	-19.6
Fixed Assets	Rs m	39,445	34,057	-13.7
Total Assets	Rs m	190,836	155,781	-18.4

INDIABULLS REAL EST Cash Flow Statement Analysis

• INDIABULLS REAL EST's cash flow from operating activities (CFO) during FY19 stood at Rs -12 billion, an improvement of 30.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 18 billion, an improvement of 704.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -17 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -11 billion from the Rs 13 billion net cash flows seen during FY18.

INDIABULLS REAL EST Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	-8,905	-11,593	-
Cash Flow from Investing Activities	Rs m	2,218	17,848	704.9%
Cash Flow from Financing Activities	Rs m	20,573	-16,954	-
Net Cash Flow	Rs m	13,215	-10,707	-

Current Valuations for INDIABULLS REAL EST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an decline from the EPS of Rs 49.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 92.2, stands at 10.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	94.9	109.7
TTM Earnings per share	Rs	49.8	11.1
Diluted earnings per share	Rs	43.6	9.2
Price to Cash Flow	x	4.0	12.5
TTM P/E ratio	x	4.9	10.0
Price / Book Value ratio	x	2.1	1.6
Market Cap	Rs m	84,563	64,661
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDIABULLS REAL EST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY19, from 1.2x during FY18. 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 2.8x during FY19, from 4.6x during FY18. 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 12.6% during FY19, from 59.2% during FY19. 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 17.7% during FY19, from 49.2% during FY18. 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 6.2% during FY19, from 16.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.2	1.4
Debtors’ Days	Days	12	199
Interest coverage	x	4.6	2.8
Debt to equity ratio	x	0.8	0.9
Return on assets	%	16.3	6.2
Return on equity	%	59.2	12.6
Return on capital employed	%	49.2	17.7

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 down from Rs 181.1 to Rs 92.2, registering a loss of Rs 88.9 or around 49.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

Overall, the S&P BSE SENSEX is up 16.3% 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