INDIABULLS REAL EST 2022-23 Annual Report Analysis

Thu, 21 Sep

INDIABULLS REAL EST has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

INDIABULLS REAL EST Income Statement Analysis

• Operating income during the year fell 59.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 99.6% in FY23 as against 0.1% in FY22.
• Depreciation charges decreased by 0.2% and finance costs decreased by 74.9% YoY, respectively.
• Other income declined by 36.1% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 9.5% in FY22 to 103.5% in FY23.

INDIABULLS REAL EST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,448	5,868	-59.4%
Other income	Rs m	966	617	-36.1%
Total Revenues	Rs m	15,414	6,485	-57.9%
Gross profit	Rs m	-15	-5,846	NA
Depreciation	Rs m	122	121	-0.2%
Interest	Rs m	1,099	276	-74.9%
Profit before tax	Rs m	-270	-5,627	NA
Tax	Rs m	1,103	449	-59.3%
Profit after tax	Rs m	-1,373	-6,076	NA
Gross profit margin	%	-0.1	-99.6
Effective tax rate	%	-408.6	-8.0
Net profit margin	%	-9.5	-103.5

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INDIABULLS REAL EST Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 25 billion as compared to Rs 38 billion in FY22, thereby witnessing an decrease of -34.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 52.6%.
• Current assets fell 14% and stood at Rs 61 billion, while fixed assets fell 41% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 64 billion as against Rs 76 billion during FY22, thereby witnessing a fall of 16%.

INDIABULLS REAL EST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	34,115	36,521	7.1
Current Liabilities	Rs m	37,857	24,939	-34.1
Long-term Debt	Rs m	3,451	1,635	-52.6
Total Liabilities	Rs m	76,458	64,351	-15.8
Current assets	Rs m	70,973	61,123	-13.9
Fixed Assets	Rs m	5,485	3,228	-41.2
Total Assets	Rs m	76,458	64,351	-15.8

INDIABULLS REAL EST Cash Flow Statement Analysis

• INDIABULLS REAL EST's cash flow from operating activities (CFO) during FY23 stood at Rs -3 billion, an improvement of 38.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 7 billion, an improvement of 135.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -133 million from the Rs -312 million net cash flows seen during FY22.

INDIABULLS REAL EST Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-2,477	-3,429	-
Cash Flow from Investing Activities	Rs m	2,804	6,608	135.7%
Cash Flow from Financing Activities	Rs m	-638	-3,311	-
Net Cash Flow	Rs m	-312	-133	-

Current Valuations for INDIABULLS REAL EST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.2, an decline from the EPS of Rs -3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.1, stands at -3.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 7.2 times.
• The company's price to cash flow (P/CF) ratio stood at -7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	31.9	10.8
TTM Earnings per share	Rs	-3.0	-11.2
Diluted earnings per share	Rs	-2.5	-11.2
Price to Cash Flow	x	-43.9	-7.6
TTM P/E ratio	x	-40.0	-3.4
Price / Book Value ratio	x	1.8	1.2
Market Cap	Rs m	60,848	45,123
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 2.5x during FY23, from 1.9x during FY22. 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 -19.4x during FY23, from 0.8x during FY22. 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 -16.6% during FY23, from -4.0% during FY23. 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 -14.0% during FY23, from 2.2% during FY22. 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 -9.0% during FY23, from -0.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	2.5
Debtors’ Days	Days	69	47
Interest coverage	x	0.8	-19.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-0.4	-9.0
Return on equity	%	-4.0	-16.6
Return on capital employed	%	2.2	-14.0

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 76.7 to Rs 78.1, registering a gain of Rs 1.5 or around 1.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,598.9 (up 0.5%). Over the last one year it has moved up from 3,597.7 to 4,598.9, a gain of 1,001 points (up 27.8%).

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for INDIABULLS REAL EST and quarterly results for INDIABULLS REAL EST)