Independent Equity Research D.S. KULKARNI DEVELOPERS LTD REAL ESTATE INDUSTY BSE Scrip Code: 523890 CMP Rs.55 1 July 20, 2012 Update for Quarter and Year ended 31 st March, 2012 Decline in revenue D. S. Kulkarni Developers Ltd (DSKDL) reported a decline in net sales during the Q4FY12 (refers to the period April 1 to March 31) by 13.1 per cent y-o-y to Rs.49.2 crore in Q4FY12 as compared to Rs.56.6 crore in Q4FY11. This was on account of relatively lower demand in the real estate sector. Improvement in profits and margins during the quarter DSKDL reported improvement in PAT by 140.9 per cent y-o-y to Rs.5.4 crore in Q4FY12 as compared to Rs.2.8 crore in Q4FY11. The EBIDTA margins of the company improved to 18.37 per cent in Q4FY12 as compared to 16.70 per cent in Q4FY11. On annual basis, however margins were under pressure. The operating margins were down 443 bps at 6.3 per cent; adjusted net margins were lower by 78 bps at 2.7 per cent in FY12. DSKDL reported an EPS of Rs.2.1 per share in Q4FY12 as against Rs.0.9 per share in Q4FY11. Quarterly Performance Snapshot (standalone) (Rs Crore) Q4 FY12 Q4 FY11 Net sales 48.6 56.3-13.7% EBITDA 8.4 9.2-8.1% Adjusted PAT 6.2 2.8 126.1% EPS* (diluted) (Rs.) 2.1 0.9 141.4% EBITDA Margin (%) 17.3 16.2 Adjusted PAT Margins (%) 12.8 4.9 * Calculated on Current Face Value of Rs.10/- per share 1 Initiative of the BSE Investors Protection Fund
CARE Decline in revenue D. S. Kulkarni Developers Ltd (DSKDL) reported a decline in net sales during the Q4FY12 (refers to the period April 1 to March 31) by 13.1 per cent y-o-y to Rs.49.2 crore in Q4FY12 as compared to Rs.56.6 crore in Q4FY11. This was on account of relatively lower demand in the real estate sector. DSKDL: Snapshot of Interim Financial Performance (Rs Crore) Q4 FY12 Q4 FY11 FY12 FY11 Net sales 49.2 56.6-13.1% 206.5 218.0-5.2% EBITDA 9.0 9.5-4.4% 17.8 23.3-23.9% Adjusted PAT 5.4 2.3 140.9% (9.7) 7.5-228.4% EBITDA Margin (%) 18.4 16.7 8.6 10.7 Adjusted PAT Margins (%) 11.0 4.0 NM 3.5 Note: Q4FY12 financial analysis on standalone basis Improvement in revenue from education segment in Q4FY12 DSKDL reported improvement in revenue in the education segment by 24.9 per cent y-o-y to Rs.20.6 crore in FY12 as compared to Rs.16.5 crore in FY11. Higher intake of students in animation institute run by the DSK Global Education & Research (P) Ltd, subsidiary of the company resulted in improvement in segmental revenue. DSKDL: Segmental Performance (Rs Crore) FY12 FY11 Revenue Real Estate 183.6 204.2-10.1% Education 20.6 16.5 24.9% Contracting NM 8.9 NM PBIT Real Estate 25.2 30.8-18.0% Education (13.6) (3.0) NM Contracting NM 0.3 NM PBIT Margins (%) Real Estate 13.7% 15.1% Education NM NM Contracting NM 3.2% 2 Initiative of the BSE Investors Protection Fund
Improvement in profits and margins during the quarter DSKDL reported improvement in PAT by 140.9 per cent y-o-y to Rs.5.4 crore in Q4FY12 as compared to Rs.2.8 crore in Q4FY11. The EBIDTA margins of the company improved to 18.37 per cent in Q4FY12 as compared to 16.70 per cent in Q4FY11. On annual basis, however margins were under pressure. The operating margins were down 443 bps at 6.3 per cent in FY12. DSKDL s interest cost increased by 16.1 per cent y-o-y to Rs.13.4 crore in FY12 as compared to Rs.11.6 crore in FY11. Consequently, adjusted PAT was lower by 28.4 per cent in FY12 at Rs.5.4 crore as against Rs. 7.5 crores in FY11. DSKDL reported an EPS of Rs.2.1 per share in Q4FY12 as against Rs.0.9 per share in Q4FY11. 3 Initiative of the BSE Investors Protection Fund
CARE Quarterly financial performance (standalone) (Rs crore) Q4 FY12 Q4 FY11 Q3FY12 (q-o-q) Net Sales 48.6 56.3-13.7% 45.8 6.2% EBITDA 8.4 9.2-8.1% 4.2 98.3% Depreciation and amortization 0.4 0.9-61.1% 0.4-2.8% EBIT 8.1 8.3-2.3% 3.9 107.7% Interest 1.1 0.6 75.8% 1.3-16.8% PBT 8.2 8.3-0.2% 5.4 53.0% Adjusted PAT 6.2 2.8 126.1% 3.3 88.0% Fully Diluted Earnings Per Share* (Rs.) 2.1 0.87 EBITDA Margin (%) 17.3 16.2 9.3 Adjusted PAT Margin (%) 12.8 4.9 7.3 Consolidated annual financial performance # (Rs crore) FY12 FY11 Net sales 201.4 218.0-7.6% EBITDA 12.7 23.3-45.8% Depreciation and amortisation 6.1 5.2 17.1% EBIT 6.6 18.1-63.8% Interest 13.4 11.6 16.1% PBT 3.4 8.3-59.3% Adjusted PAT 5.4 7.5-28.4% Fully Diluted Earnings Per Share* (Rs.) 2.1 2.8 EBITDA margin 6.3% 10.7% Adjusted PAT margin 2.7% 3.5% # Based on abridged financials 4 Initiative of the BSE Investors Protection Fund
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