D B Realty - Not Rated - Motilal oswal

D B REALTY 3QFY11: Well below guidance; Strong contribution from TDR sales; Sales volume down in residential vertical

DB Realty has reported 50.7% YoY increase in its 3QFY11 revenue to Rs2.7b vs Rs1.8b in 3QFY10.

While sale of TDR has contributed to ~Rs1.9b (~69% of the revenue, vs ~44% in 2QFY11), the rest is contributed by key residential projects.

EBIDTA jumped 80.9% YoY to Rs1.2b; EBITDA margin stood at 43.6% (vs 36.3% in 3QFY10 and 41.3% in 2QFY11). EBITDA for 9MFY11 stood at Rs3.5b.

Net profit increased by a sharp 103% YoY to Rs1.1b. Net profit for 9MFY11 stood at Rs2.9b (vs management guidance of Rs8.3b for FY11)

As on Dec-10, DBRL's gross debt declined to Rs4.7b (vs Rs7b in 2QFY11), while DER stood at 0.15x (vs 0.21x in 2QFY11).

During 3QFY11, the company sold ~1.2msf (Rs9.7b) including TDR sales of 0.65msf (Rs1.9b) and residential sales of ~0.52msf (sales value of Rs9.7b), leading to total 9MFY11 sales volume of 3.1msf (sales value of Rs28.9b). DBRL trades at 1.2x its FY11 BV of Rs150/share and 7x FY11E EPS of Rs21.7/share. Not rated.

Source : Equity Bulls

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