Valor Estate (533160) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue fell 18% YoY to ₹2,861 mn; profit after tax was ₹5.68 mn versus ₹115.48 mn, while basic and diluted EPS declined to ₹0.02 from ₹0.47.

• Construction commenced or advanced across key Mumbai projects; DB Woods received its full Occupation Certificate and handovers were substantially completed.

• Sales momentum was expected to strengthen in FY16 as construction progressed and new projects launched.

Financial highlights

• Consolidated revenue from operations was ₹2,634 mn, down 17% YoY; project revenue fell 36% to ₹1,728 mn, while TDR sales rose 95% to ₹862 mn.

• Consolidated PBT was a loss of ₹213.47 mn versus profit of ₹220.91 mn; net profit was ₹5.68 mn versus ₹115.48 mn.

• Standalone revenue was ₹359.82 mn versus ₹195.67 mn; standalone loss widened to ₹244.38 mn from ₹411.18 mn?

• Consolidated total assets increased 17% to ₹64,702 mn; current assets rose 47% to ₹33,211 mn, including inventories of ₹23,048 mn.

Outlook and guidance

• FY16 plans included continued delivery of high-quality projects and new project launches; sales were expected to gain momentum as construction advanced.

• The outlook cited expected Indian GDP growth of 7.0%–7.5% in FY16, lower interest rates, Mumbai’s proposed Development Plan and the proposed Real Estate Bill as potential demand supports.