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Aug 29, 2012, 05.57 PM IST
CRISIL Research has come out with its report on Parsvnath Developers. The research firm has maintained the fundamental grade of 2/5 to the company in its August 22, 2012 report.
CRISIL Research has come out with its report on Parsvnath Developers . The research firm has maintained the fundamental grade of 2/5 to the company in its August 22, 2012 report.
Parsvnath Developers Ltd’s (Parsvnath’s) Q1FY13 results were below CRISIL Research’s expectations. Revenues declined 25% y-o-y to Rs 1,634 mn due to slow execution in some of the projects. EBITDA margin was 66% against 26% in Q1FY12 due to change in disclosure levels as per Schedule VI of the Companies Act. Project-specific interest costs, which were earlier part of cost of goods sold, are now reported under interest costs below EBITDA. On a like-to-like basis, EBITDA margin would have been 59% in Q1FY12. PAT declined 22% y-o-y to Rs 202 mn. Bookings were flat q-o-q at 0.8 mn sq ft in line with our expectations. However, lower-than-expected execution led to decline in revenues. This coupled with high interest cost impacted PAT. Net debt remained at Rs 14.6 bn. Though the company plans to reduce debt through sale of assets, it is a key monitorable. We lower our earnings estimates factoring in delays in some of the projects. We maintain our fundamental grade of 2/5.
Bookings remained flat; execution is key
Debt remains high; remain cautious on deleveraging plans
KG Marg land parcel received approvals, sell-off/ development plan is a monitorable
Earnings estimates lowered; fair value maintained at Rs 63 per share
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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