Indiabulls Real Estate Posts Mix Set Of Numbers For FY’14

Indiabulls real estate, one of the leading real estate companies in India, has posted its financial result of fourth quarter and year ended 31 March 2014. The company has posted mix set of numbers for FY'14. During the year company's total operating income recorded a strong yearly growth of 33% to Rs 1736.2 crore against Rs 1300.5 crore in FY13. EBITDA of the company went up by 15.3% to Rs 540.4 crore in FY'14 from Rs 468.5 crore in FY'13 and net profit (after adjusting minority interest) rose by 28% to Rs. 223.4 crore in said period.

The company has shown some disappointment on the margin front. EBITDA margin for the company fell to 31% in FY14 from 36% in FY13. Further its net profit margin came down to 12.8% in FY'14 from 13.4% same period of last year. Decrease in margin is mainly due to increase in expenditure. Cost of land, plots, construction properties and other expenses of the company went up to 52% of total operating income in FY'14 from 46.7% in FY'13.Other expenses which is also a major expense for the company grew to 14% of total operating revenue in FY'14 from 12.5% in last financial year.

As on March 31, 2014, Indiabulls Real Estate has 1009.7 acres of land bank out of which 966.6 acres of land is for residential development and 93.1 acres of land is for commercial development. If we look at region wise availability of land, 54% of above mentioned land bank belongs to NCR, 28% in Mumbai and rest 18% is in Chennai as the company mainly operates in these three regions. At present (as on 31st, March, 2014) the company has 247.8 lakh sq ft of saleable area and 30 ongoing projects out of which 9 projects is expected to done by FY15. 

Coming to project pipeline of the company for FY15, it has 86.56 lakh sq ft of saleable area from six upcoming projects, in both residential and commercial segment. At CMP of Rs 62.8 per share, it is trading at 12x of its trailing 12-month earning.