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Puravankara Projects (PVKP)
Property
Better than expected. PVKP reported 1QFY12 revenues of Rs1.9 bn (+64% yoy, 10%
above estimates) and EBITDA of Rs455 mn (+16% yoy, 19% above estimates). PVKP
has sold 0.7 mn sq. ft in 1QFY12 versus 0.3 mn sq. ft in 1QFY11. Stock has corrected
40% in the past three months, underperformed the BSE Realty Index by 26% and is
now trading at 0.9X FY2011 BV and 0.8XFY12E BV. We will review our
recommendation, NAV and earnings estimates post the earnings call.
Financial performance better than expected
PVKP reported 1QFY12 revenues of Rs1.9 bn (+64% yoy, +23% qoq and 10% above KIE
estimates), EBITDA of Rs455 mn (+16% yoy, +65% qoq and 19% above KIE estimate) and PAT of
Rs311 mn (-15% yoy, +84% qoq and 9% above KIE estimate). EBITDA margin expanded 609 bps
qoq (though declined 970 bps yoy) led by (1) likely higher proportion of revenues from
Puravankara (versus Provident) which is higher margin and (2) some part of the 300 bps margin
decline in 4QFY11 was lumping together of cost over-runs. While PBT was up 10% yoy, PAT was
down 15% yoy as tax rate moved to a more sustainable 29.5% versus 8.6% on lack of 80-IB
projects which are tax exempt.
Sales remain flattish qoq; launches two new projects
Puravankara (along with Provident) sold 0.73 mn sq. ft in 1QFY12 versus 0.78 mn sq. ft in 4QFY11
and 0.34 mn sq. ft in 1QFY11. Key projects in Puravankara from which PVKP derived sales are (1)
Windermere (0.3 mn sq. ft), (2) Purva Venezia (0.08), (3) Purva Bluemont (0.08 mn sq. ft) and (4)
Purva Skywood (0.07 mn sq. ft) and Cosmo City contributed 0.17 mn sq. ft. Sales realizations
improved qoq in Puravankara (Rs3,922/sq. ft versus Rs3,437/sq. ft in 4QFY11) and also in
Provident (Rs2,388/sq. ft versus Rs2,027/sq. ft in 4QFY11) with overall realizations improving qoq
to Rs3,677/sq. ft from Rs2,945/sq. ft in 4QFY11. PVKP currently has 19.8 mn sq. ft of projects
under execution including 15 residential projects (14.9 mn sq. ft), two affordable housing projects
(4.5 mn sq. ft) and three commercial projects (0.5 mn sq. ft).
In 1QFY12, PVKP launched 1 mn sq. ft across two new projects - (1) Purva Bluemont (residential,
0.8 mn sq. ft) and (2) Gainz (commercial, 0.2 mn sq. ft) and launched additional area in (1) Purva
Eternity (0.16 mn sq. ft), (2) Cosmo City (0.55 mn sq. ft) and (3) Wellworth City (0.8 mn sq. ft).
The company is set to launch a new luxury project in CV Raman Nagar (1.08 mn sq. ft) from which
it expects to realize Rs5 bn. In total, PVKP plans to launch 4.6 mn sq. ft saleable area in
Puravankara and 11.3 mn sq. ft in Provident in FY2012E and another 2.1 mn sq. ft of saleable area
in Puravankara in FY2013E. PVKP’s land bank stands at 116.4 mn sq. ft of developable area (19.6
mn sq. ft in planned launches and 96.8 mn sq. in land) versus 118.2 mn sq. ft at end-4QFY11
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Puravankara Projects (PVKP)
Property
Better than expected. PVKP reported 1QFY12 revenues of Rs1.9 bn (+64% yoy, 10%
above estimates) and EBITDA of Rs455 mn (+16% yoy, 19% above estimates). PVKP
has sold 0.7 mn sq. ft in 1QFY12 versus 0.3 mn sq. ft in 1QFY11. Stock has corrected
40% in the past three months, underperformed the BSE Realty Index by 26% and is
now trading at 0.9X FY2011 BV and 0.8XFY12E BV. We will review our
recommendation, NAV and earnings estimates post the earnings call.
Financial performance better than expected
PVKP reported 1QFY12 revenues of Rs1.9 bn (+64% yoy, +23% qoq and 10% above KIE
estimates), EBITDA of Rs455 mn (+16% yoy, +65% qoq and 19% above KIE estimate) and PAT of
Rs311 mn (-15% yoy, +84% qoq and 9% above KIE estimate). EBITDA margin expanded 609 bps
qoq (though declined 970 bps yoy) led by (1) likely higher proportion of revenues from
Puravankara (versus Provident) which is higher margin and (2) some part of the 300 bps margin
decline in 4QFY11 was lumping together of cost over-runs. While PBT was up 10% yoy, PAT was
down 15% yoy as tax rate moved to a more sustainable 29.5% versus 8.6% on lack of 80-IB
projects which are tax exempt.
Sales remain flattish qoq; launches two new projects
Puravankara (along with Provident) sold 0.73 mn sq. ft in 1QFY12 versus 0.78 mn sq. ft in 4QFY11
and 0.34 mn sq. ft in 1QFY11. Key projects in Puravankara from which PVKP derived sales are (1)
Windermere (0.3 mn sq. ft), (2) Purva Venezia (0.08), (3) Purva Bluemont (0.08 mn sq. ft) and (4)
Purva Skywood (0.07 mn sq. ft) and Cosmo City contributed 0.17 mn sq. ft. Sales realizations
improved qoq in Puravankara (Rs3,922/sq. ft versus Rs3,437/sq. ft in 4QFY11) and also in
Provident (Rs2,388/sq. ft versus Rs2,027/sq. ft in 4QFY11) with overall realizations improving qoq
to Rs3,677/sq. ft from Rs2,945/sq. ft in 4QFY11. PVKP currently has 19.8 mn sq. ft of projects
under execution including 15 residential projects (14.9 mn sq. ft), two affordable housing projects
(4.5 mn sq. ft) and three commercial projects (0.5 mn sq. ft).
In 1QFY12, PVKP launched 1 mn sq. ft across two new projects - (1) Purva Bluemont (residential,
0.8 mn sq. ft) and (2) Gainz (commercial, 0.2 mn sq. ft) and launched additional area in (1) Purva
Eternity (0.16 mn sq. ft), (2) Cosmo City (0.55 mn sq. ft) and (3) Wellworth City (0.8 mn sq. ft).
The company is set to launch a new luxury project in CV Raman Nagar (1.08 mn sq. ft) from which
it expects to realize Rs5 bn. In total, PVKP plans to launch 4.6 mn sq. ft saleable area in
Puravankara and 11.3 mn sq. ft in Provident in FY2012E and another 2.1 mn sq. ft of saleable area
in Puravankara in FY2013E. PVKP’s land bank stands at 116.4 mn sq. ft of developable area (19.6
mn sq. ft in planned launches and 96.8 mn sq. in land) versus 118.2 mn sq. ft at end-4QFY11
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