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Indiabulls’ Q2 FY12 numbers were marginally lower than
our estimates, earnings declining 26% yoy to Rs374m and
revenue growing 11% yoy to Rs3.3bn.
On the positive side, EBITDA margin improved qoq to 30%
vs 12-17% in the past two quarters. EBITDA grew 26% yoy
to Rs1.1bn, ahead of our estimates.
Residential sales were a modest 1.2m sq ft (vs 1.5m sq
ft/quarter in FY11). But in the commercial segment,
construction and leasing remained robust with lease
addition of 0.19m sq ft.
We maintain earnings and price target; reiterate
Outperform on discounted valuations and de-merger of
Indiabulls Power.
Revenue and earnings marginally lower than our
estimates. Q2 FY12 revenue of Rs3.3bn was up 11% yoy
while PAT declined 26% yoy to Rs374m, both marginally lower
than our estimates due to high interest expense. EBITDA
margin recovered to 30% after being <20% for the past two
quarters. EBITDA grew 26% yoy to Rs1.1bn, above our
estimate.
Sale momentum better. The company booked sales on of
1.2m sq ft in Q1 FY12 (vs 1.5m sq ft/quarter in FY11 and 0.78m
sq ft in Q1 FY12). It did not launch any new project during the
quarter and hence its area under construction remained flat at
14.6m sq ft. We believe that the launch of the company’s Worli
project may face delays due to difficult market conditions.
Lease momentum steady. On the other hand, its commercial
leasing performance remained robust, it added 0.19m sq ft to
its lease portfolio in Q2 FY12, taking the total leased area to
1.96m sq ft. We expect the strong lease momentum to
continue. The company added 0.31m sq ft to its area under
construction in the quarter. In all, the company has about
2.93m sq ft of commercial property under construction.
Other highlights. In the current quarter, the company added
the 1.7mn sq ft of projects to its construction portfolio. It has
fully repaid its optionally convertible debentures of Rs1.4bn and
reduced the overall consolidated debt by Rs1.7bn.
Valuation at steep discount. Following the recent under
performance, the stock trades at 0.33 NAV, 0.3x P/B and 12x
PE for FY12E. We expect earnings CAGR of 33% over FY12-
14E. We maintain OP and price target of Rs166/sh given the
discounted valuations and balance sheet clean-up post the
Indiabulls Power de-merger.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Indiabulls’ Q2 FY12 numbers were marginally lower than
our estimates, earnings declining 26% yoy to Rs374m and
revenue growing 11% yoy to Rs3.3bn.
On the positive side, EBITDA margin improved qoq to 30%
vs 12-17% in the past two quarters. EBITDA grew 26% yoy
to Rs1.1bn, ahead of our estimates.
Residential sales were a modest 1.2m sq ft (vs 1.5m sq
ft/quarter in FY11). But in the commercial segment,
construction and leasing remained robust with lease
addition of 0.19m sq ft.
We maintain earnings and price target; reiterate
Outperform on discounted valuations and de-merger of
Indiabulls Power.
Revenue and earnings marginally lower than our
estimates. Q2 FY12 revenue of Rs3.3bn was up 11% yoy
while PAT declined 26% yoy to Rs374m, both marginally lower
than our estimates due to high interest expense. EBITDA
margin recovered to 30% after being <20% for the past two
quarters. EBITDA grew 26% yoy to Rs1.1bn, above our
estimate.
Sale momentum better. The company booked sales on of
1.2m sq ft in Q1 FY12 (vs 1.5m sq ft/quarter in FY11 and 0.78m
sq ft in Q1 FY12). It did not launch any new project during the
quarter and hence its area under construction remained flat at
14.6m sq ft. We believe that the launch of the company’s Worli
project may face delays due to difficult market conditions.
Lease momentum steady. On the other hand, its commercial
leasing performance remained robust, it added 0.19m sq ft to
its lease portfolio in Q2 FY12, taking the total leased area to
1.96m sq ft. We expect the strong lease momentum to
continue. The company added 0.31m sq ft to its area under
construction in the quarter. In all, the company has about
2.93m sq ft of commercial property under construction.
Other highlights. In the current quarter, the company added
the 1.7mn sq ft of projects to its construction portfolio. It has
fully repaid its optionally convertible debentures of Rs1.4bn and
reduced the overall consolidated debt by Rs1.7bn.
Valuation at steep discount. Following the recent under
performance, the stock trades at 0.33 NAV, 0.3x P/B and 12x
PE for FY12E. We expect earnings CAGR of 33% over FY12-
14E. We maintain OP and price target of Rs166/sh given the
discounted valuations and balance sheet clean-up post the
Indiabulls Power de-merger.
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