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Friday, May 23, 2008

CM ANALYSIS: HDIL - Excellent performance (22-May 14:34 Hrs IST)

 

 

HDIL

Excellent performance

HDIL reported net sales of Rs 975.08 crore. Excellent OPM of 88.6% helped the Company posting operating profit of Rs 863.93 crore. OI was reported at Rs 14.41 crore. And after providing for interest and depreciation, PBT was reported at Rs 809.34 crore. Finally, after paying tax expense of Rs 101.09 crore, net profit was accounted at Rs 708.25 crore.

Business Overview:

  • Total Land Reserve (including TDR) of 192.17 million sq ft as on 31st Mar'08. Of this, around 87% of land bank is in Mumbai Metropolitan Region
  • Currently doing one of the largest SRA projects for rehabilitation of around 85,000 slum dwellers under expansion & modernization of Mumbai airport.
  • HDIL Entertainment, a 100% subsidiary of HDIL, will develop and operate multiplexes with 17 screens in Mumbai region.

Annual Consolidated Result

Net sales grew by a whopping 98% to Rs 2380.37 crore. An improvement of 1610 bps in operating margins to 71.1% catapulted the operating profit to report a phenomenal growth of 156% at Rs 1692.13 crore. Other income was up by 157% to Rs 52.92 crore. After accounting for Interest cost, up by 151% to Rs 140.78 crore, and depreciation, up by 68% to Rs 2.23 crore, PBT was posted at Rs 1602.04 crore, a growth of 156% over the corresponding previous fiscal year. And as effective tax rate fell by 35 bps to 11.99%, net profit posted growth of 157% at Rs 1409.84 crore.

Standalone Performance

Quarter ended Mar'08

As the Company was an unlisted entity during the FY06-07, no financial result for the quarter ended March'07 is available. Hence, it is not possible to compare the results for the quarter ended Mar'08 with that of the corresponding previous quarter.

Net sales were reported at Rs 975.08 crore. Operating margins were at an impressive 88.6% and operating profit was registered at Rs 863.93 crore. Other income of Rs 14.41 crore led PBIDT to report at Rs 878.34 crore. The Company paid an interest cost of Rs 68.15 crore and provided depreciation of Rs 0.85 crore. Resultantly, PBT was at a low of Rs 809.34 crore. And after accounting for the effective tax rate of 12.49%, the Company reported net profit of Rs 708.25 crore.

FY2007-08

Net sales at Rs 2379.87 crore posted growth of 98% over the corresponding previous fiscal year. OPM improved by a whopping 1695 bps to 71%. Good growth in topline and margins improvement resulted into the Company posting 160% growth in the operating profit at Rs 1690.03 crore. Other income was up 302% to Rs 52.45 crore. Interest cost was reported at Rs 138.49 crore, growth of 211% on a y-o-y basis, and depreciation was 89% up at Rs 1.87 crore. PBT was reported at Rs 1602.12 crore, a growth of 159% over the corresponding previous fiscal year. Effective tax rate fell marginally by 40 bps to 11.96% resulting in the Company to post 160% growth in the bottomline at Rs 1410.50 crore.

Other information:

  • The Board has recommended issue of fully paid Bonus Shares in the proportion of 2 shares for every 7 shares held.
  • As on March 31, 2008, the borrowings of the company were Rs 3112.74 crore as against net worth of Rs 3635.68 crore.
  • The Company has fully utilized Rs 1698.60 crore raised through a combination of IPO (Rs 1485 crore) and Green Shoe Option (213.60 crore). The utilisation has been done as; Issue expenses (Rs 89.38 crore), Acquisition of land and land development rights (Rs 1188.18 crore) and construction of ongoing projects (Rs 421.04 crore).
  • Promoter's shareholding remains constant at 61.50%.
  • The scrip was trading at Rs 804 as on 22nd May 2008.

 

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