Valor Estate (533160) Q4 16/17 earnings summary

Executive summary

• FY2016-17 consolidated revenue was ₹2,735.3m and net loss was ₹766.4m, versus ₹3,455.0m revenue and ₹229.6m net loss in FY2015-16; consolidated EPS was -₹2.55.

• Construction advanced across several Mumbai projects, while management expected stronger sales momentum in FY2017-18 as projects progressed.

Financial highlights

• Consolidated revenue from operations was ₹1,366.8m; total expenses were ₹3,290.8m, finance costs ₹956.0m, and loss before tax ₹496.6m.

• Consolidated other comprehensive loss was ₹421.2m; total comprehensive loss was ₹1,187.5m, versus ₹363.5m in FY2015-16.

• Standalone revenue from operations fell to ₹137.8m from ₹1,770.4m; PAT was ₹14.3m versus ₹527.6m, while OCI was a ₹395.3m loss.

• Consolidated current liabilities rose 39% to ₹25,239m; current assets increased 15% to ₹39,571m.

Outlook and guidance

• Management expected sales momentum to strengthen in FY2017-18 as construction advanced; it viewed 2017 as a transition year, with gradual sector improvement expected.

• The outlook cited stronger consumer confidence, improved affordability and affordable-housing infrastructure status as potential longer-term sector drivers.