Indiabulls Real Estate has registered 599% jump in consolidated revenue for the quarter ended Dec 2017 to Rs 2100.13 crore. As operating profit margin expand by 130 bps to 11%, the operating profit jumped up by 696% to Rs 231.13 crore largely due to higher sales. But hit by lower other income (down 67% to Rs 64.31 crore), higher interest cost (up by 16% to Rs 162.14 crore) and higher depreciation (up 36% to Rs 24.68 crore), the growth at PBT moderated and stood at 71% to Rs 108.63 crore. Eventually the PAT was up by 109% to Rs 85.39 crore spurred by lower tax rate. Eventually the fall at net profit (after minority interest) was just 39% (to Rs 81.10 crore) hit by lower share of profit from associates and higher share of loss in minority interest. After accounting for other comprehensive income of Rs 27.28 crore (compared to an expense of Rs 65.97 crore) the total comprehensive income attributable to owners of parent company was a profit of Rs 108.38 crore compared to a loss of Rs 7.44 crore in the corresponding previous period.
- Jump in revenue for the quarter was largely as the revenue from real estate development jump by whopping 1011% to Rs 1940.18 crore. The share of rental business for the quarter was up by 27% to Rs 170.50 crore. Jump in real estate development seems largely on account of sale of large land/plotted sales than developed housing stocks.
- EBIT was up by 45% to Rs 124.06 crore and the upside was largely due to higher segment profit from both business. Despite sharp jump in segment revenue of RE development business, it segment profit was up by just 72% to Rs 60.48 crore as its segment margin contract sharply. Segment margin of RE development was down by 1700 bps to 3.1%. However the segment profit of rental was up by 26% to Rs 63.58 crore with its segment margin down by marginal 10 bps to 37.3%.
- Just an 130 bps expansion in OPM for the quarter despite jump in revenue seems largely on account of significant change in product mix as well as project contributing to the top-line. Cost of land plots as proportion to sales jumped by 2500 bps to 83.6%. But that of employee cost and other expenses was down by 790 bps (to 1.6%) and 500 bps (to 1.2%) respectively.
YTD Performance
Sales more than doubled (up 107%) to Rs 3898.53 crore. But a 350 bps contraction in OPM restricted the growth at operating profit at 80% to Rs 903.92 crore. However the growth at PBT moderated and stood at 13% (to Rs 498.15 crore) hurt by lower other income, higher interest and higher depreciation. Hit further by higher tax incidence the PAT was up by 13% to Rs 331.87 crore. After accounting for lower share of profit from associate, higher share of minority loss, higher OCI attributable to owners of parent company, the net profit (after minority interest and OCI) was up by 213% to Rs 422.27 crore.
Other developments
IBREL, through its wholly-owned subsidiary Yashita Buildcon Limited, has entered into a binding and definitive agreement to acquire a prime and newly constructed commercial building, having leasable area of around 2.5 lakh square feet in Gurgaon. With this acquisition, total annualised annuity revenue would be Rs 1513 crore in FY20-21.
Worli Commercial – Work started in full swing on the office development.
IBREL has become 100% owner of IPIT with the completion of compulsory acquisition, and IPIT is now delisted from the official list of the SGX-ST
IBREL has partnered with Mandarin Oriental Hotel Group for its integrated development, Hanover Bond. This is not only the first Mandarin Oriental hotel and residences in Mayfair, but also the first truly integrated hotel and residences to be delivered in central London. Mandarin Oriental has guaranteed EBITDA, valuing hotel at £155mn @ 4% cap rate. During soft launch, Project has achieved sales of £45.3 Million @ £5,875 psf, including a Penthouse sale @ £7,750 psf, highest amongst under construction multi-unit development.
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