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Apr-Jun 2013 Earnings Preview
Prestige Estate Projects
Rating
Accumulate
Price (Rs) 152
Target Price (Rs) 200
M/Cap (Rs bn) 53.3
Shares o/s (m) 350.0
The company had four launches during the quarter which have done pretty well for
them. We expect sales in value and volume terms to witness strong sequential
growth and remain flat on YoY basis. Further, Prestige acquired two new projects;
one in Bengaluru and one in Hyderabad, both through the JD model. The company
remains confident of two large Chennai launches in the upcoming quarter. Revenue
recognition during the quarter is also expected to remain strong.
Key Figures (Rs m)
Y/e March FY13 FY14E FY15E
Net Sales 19,476 26,862 34,823
EBITDA 5,791 7,877 10,416
Margin (%) 29.7 29.3 29.9
PAT 2,860 3,892 5,569
EPS (Rs) 8.2 11.1 15.9
Growth (%) 224.6 36.1 43.1
RoE (%) 11.7 13.5 17.2
PE (x) 18.6 13.7 9.6
P / BV (x) 1.9 1.8 1.5
EV / E (x) 12.5 9.2 6.9
Quarterly Table (Rs m)
Y/e March
Q1
FY14E
Q1
FY13
YoY gr.
(%)
Q4
FY13
12M
FY14E
12M
FY13
YoY gr.
(%)
Net Sales 5,560 2,192 153.7 5,597 26,862 19,476 37.9
EBITDA 1,585 704 125.2 1,321 7,877 5,791 36.0
Margin (%) 28.5 32.1 (360)bps 23.6 29.3 29.7 (41)bps
Reported PAT 1,090 493 121.1 890 3,892 2,860 36.1
PAT (Excl. Ex Items) 1,090 493 121.1 890 3,892 2,860 36.1
Operating Metrics
Sales (m sqft) 2.0 2.0 (0.7) 0.9 7.9 6.0 32.5
Sales Value (Rs m) 9,525 10,105 (5.7) 5,416 43,666 31,221 39.9
Avg Realization (Rs/sqft) 4,704 4,953 (5.0) 6,085 5,503 5,212 5.6
Sobha Developers
Rating
Accumulate
Price (Rs) 342
Target Price (Rs) 418
M/Cap (Rs bn) 33.5
Shares o/s (m) 98.1
On a sequential basis, we expect sales to be subdued, being a seasonally weak
quarter. However, on a YoY basis, we expect the numbers to display growth. The
company had one plotted launch in Bengaluru, ‘Sobha Landscape’ which is the
second phase of the previously launched project, ‘Sobha Canvas’. It has also
commenced construction of its commercial property at St. Marks Road, Bengaluru.
The ‘Indraprastha’ project, that was launched in Mar 2013, is also expected to
contribute to sales in Q1.
Key Figures (Rs m)
Y/e March FY13 FY14E FY15E
Net Sales 18,645 26,369 27,528
EBITDA 5,483 7,719 8,305
Margin (%) 29.4 29.3 30.2
PAT 2,172 3,803 4,125
EPS (Rs) 22.1 38.8 42.1
Growth (%) 5.4 75.1 8.5
RoE (%) 10.5 16.5 15.7
PE (x) 15.4 8.8 8.1
P / BV (x) 1.6 1.4 1.2
EV / E (x) 8.4 5.8 5.3
Quarterly Table (Rs m)
Y/e March
Q1
FY14E
Q1
FY13
YoY gr.
(%)
Q4
FY13
12M
FY14E
12M
FY13
YoY gr.
(%)
Net Sales 5,350 4,332 23.5 5,867 26,369 18,645 41.4
EBITDA 1,470 1,198 22.7 1,626 7,719 5,483 40.8
Margin (%) 27.5 27.7 (18)bps 27.7 29.3 29.4 (13)bps
Reported PAT 578 450 28.4 696 3,803 2,172 75.1
PAT (Excl. Ex Items) 578 450 28.4 696 3,803 2,172 75.1
Operating Metrics
Sales (m sqft) 0.9 0.8 10.2 1.1 4.3 3.8 14.3
Sales Value ( Rs m) 6,029 4,794 25.8 6,743 24,240 22,145 9.5
Avg Realisation (Rs/sqft) 6,548 5,737 14.1 6,294 5,649 5,897 (4.2)
July 8, 2013 172