DLF Unitech Comparative Financial Analysis
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DLF Unitech Comparative Financial Analysis

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A financial comparison of Indian construction giants Unitech and DLF based on various financial ratios

A financial comparison of Indian construction giants Unitech and DLF based on various financial ratios

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    DLF Unitech Comparative Financial Analysis DLF Unitech Comparative Financial Analysis Presentation Transcript

    • CONSTRUCTION INDUSTRY COMPANY COMPARISON FINANCIAL ACCOUNTING GROUP TWO samedi 28 novembre 2009
    • CONSTRUCTION INDUSTRY COMPANY COMPARISON samedi 28 novembre 2009
    • CONSTRUCTION INDUSTRY COMPANY COMPARISON SINCE 1971. LAND BANK STARTED AS DELHI LAND OF OVER 14,500 ACRES. AND FINANCE IN 1946. PRIMARILY ACTIVE IN LAND BANK IN 32 CITIES. NCR (NOIDA) MOST ACTIVE IN NCR samedi 28 novembre 2009
    • CONSTRUCTION INDUSTRY COMPANY COMPARISON SINCE 1971. LAND BANK STARTED AS DELHI LAND OF OVER 14,500 ACRES. AND FINANCE IN 1946. PRIMARILY ACTIVE IN LAND BANK IN 32 CITIES. NCR (NOIDA) MOST ACTIVE IN NCR samedi 28 novembre 2009
    • samedi 28 novembre 2009
    • INDIA’S LARGEST REAL ESTATE DEVELOPMENT COMPANY - 39,369 CRORE RUPEES TOTAL ASSETS (2009) HEADED BY KUSHAL PAL SINGH DESCENDENT OF THE COMPANY’S FOUNDERS COMPANY HAS USED ASSETS OBTAINED IN DELHI AND GURGAON TO EXPAND TO OTHER INDIAN MARKETS INCLUDING MUMBAI, TAMIL NADU AND BANGALORE CREATING JOINT VENTURES WITH FIRMS SUCH AS LAING O’ROURKE (UK CONSTRUCTION COMPANY) FOR ALL LANDMARK PROJECTS, AND HILTON HOTELS FOR HOTEL VENTURES FOCUSING ON STRENGTHENING ITS LATERAL AND VERTICAL BUSINESS DRIVERS samedi 28 novembre 2009
    • samedi 28 novembre 2009
    • CLAIMS TO BE INDIA’S SECOND LARGEST REAL-ESTATE INVESMENT COMPANY - 10,538 CRORE RUPEES TOTAL ASSETS (MARCH 2009) FOUNDED IN 1971 BUT FOCUSED WHOLLY ON REAL-ESTATE SINCE 1986 DIVERSIFYING INTO TELECOMS IN COOPERATION WITH NORWAY’S TELENOR GROUP ENVISION FOR 50% GROWTH PER YEAR SINCE 2008 samedi 28 novembre 2009
    • ECONOMIC ANALYSIS In recent years the Indian economy has been, and expects to continue to grow at a rate of approx 8% until 2020. Deregulation and positive demographic trends combined with attractive economic investment opportunities have meant that the Indian economy has been growing amongst the fastest in the world, has experienced positive FDI (recently crossing $100bn since 2000). An increasing balance of payments gap, with current account deficit of $37.2 in 2008-9 (OECD figures) and a challenging macroeconomic environment (inflation of 13% at August 2008), 26% fall in value of Rupee, and major disruption to Real Estate sector. samedi 28 novembre 2009
    • SECTOR ANALYSIS The Real Estate sector was amongst the worst hit by the global slowdown started by Lehman Brothers’ collapse in 2008. Uncertainty and job losses inhibited many people from purchasing new homes, while uncertain and unfavourable trading conditions pushed companies to delay capital intensive projects. Real Estate requires both high capital investment and economic security, thus fell victim to current crisis. Economic indicators have improved (inflation back to 5% end 2008), while urbanisation and sector demand projection promise a rapid return to health in 2009. samedi 28 novembre 2009
    • Net  Profit  Margin  (PAT/Sales)  (%) 60 55 45 47 38 40 36 36 30 15 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 54,75 39,75 2008 46,53 35,71 2008 2007 35,95 38,42 2009 samedi 28 novembre 2009
    • Net  Profit  Margin  2009  (%) 0 10 20 30 40 50 60 UNITECH  Ltd. 39,75 DLF  Ltd. 54,75 DLF  Ltd. UNITECH  Ltd. Net  Profit  Margin 2009 54,75 39,75 samedi 28 novembre 2009
    • Gross  Profit  Margin  (%) 80 78 72 60 67 61 62 63 2007 2008 40 2009 20 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 72 66,8 2008 61 63,2 2007 77,8 62 samedi 28 novembre 2009
    • Opera8ng  Ra8o  (Total  Opera8ng  Expenses/Sales) 100 92,63 91,38 86,28 75 64,45 62,72 61,44 50 25 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 92,63 91,38 2008 64,45 62,72 2008 2007 86,28 61,44 2009 samedi 28 novembre 2009
    • Cash  Opera8ng  Profit  Ra8o 65 64,85 64,47 63,66 61,62 60,78 57,78 49 33 16 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 64,85 64,47 2008 2008 57,78 61,62 2009 2007 63,66 60,78 samedi 28 novembre 2009
    • Opera8ng  Ra8o  (%)(Total  Opera8ng  Profit/Sales) 50 44,65 40 42,216 42,19 41,53 39,130 39,51 30 20 10 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 39,51 41,53 2008 44,65 42,19 2007 39,13 42,216 samedi 28 novembre 2009
    • Return  On  Equity 2007 2008 2009 0,9 0,8 0,8471 0,7 0,6 0,6258 0,5 0,4 0,4807 0,3 0,2 0,2587 0,2284 0,1 0,1250 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 0,125 0,2587 2008 0,2284 0,4807 2007 0,6258 0,8471 samedi 28 novembre 2009
    • Return  On  Investment 0,3 0,3 2007 2008 0,2 2009 0,2 0,1 0,1 DLF  Ltd. 0 UNITECH  Ltd. samedi 28 novembre 2009
    • Earnings  Per  Share 16 12 8 4 2008 2009 UNITECH  Ltd. 0 DLF  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 9,09 7,37 2008 15,48 10,23 samedi 28 novembre 2009
    • Dividend  Per  Share 2007 2008 2009 2,0 1,5 1,0 0,5 0 DLF  Ltd. DLF  Ltd. UNITECH  Ltd. UNITECH  Ltd. 2009 Rs.  2 Rs.  0,10 2008 2 0,25 samedi 28 novembre 2009
    • Dividend  Payout  Ra8o 0,300 0,225 0,150 0,075 2008 2009 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 0,22 0,0136 2008 0,129 0,024 samedi 28 novembre 2009
    • Liquid  Ra8o 9,00 6,75 4,50 2,25 0 DLF  Ltd. UNITECH  Ltd. 2007 DLF  Ltd. UNITECH  Ltd. 2009 8,284 0,9665 2008 2008 3,308 1,263 2009 2007 1,372 0,939 samedi 28 novembre 2009
    • Super  Quick  Ra8o 0,500 0,375 0,250 0,125 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 0,2461 0,0156 2008 0,2651 0,0583 2008 2007 0,477 0,1876 2009 samedi 28 novembre 2009
    • Debt-­‐Equity  Ra8o 11,0 9,9 8,8 7,7 6,6 5,5 4,4 3,3 2,2 1,1 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 0,777 2,685 2008 0,744 3,878 2008 2007 10,369 3,107 2009 samedi 28 novembre 2009
    • Interest  Coverage  Ra8o 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 3,374 2,338 2008 2008 8,0224 4,493 2009 2007 0,449 7,965 samedi 28 novembre 2009
    • Debtors  /  Turnover  Ra8o  (Sales/Sundry  Debtors) 30 25 20 15 10 5 0 UNITECH  Ltd. DLF  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 13,283 2,3166 2008 2008 3,7811 3,791 2009 2007 6,544 25,668 samedi 28 novembre 2009
    • Working Capital Turnover Ratio 0,6 0,5 0,3 0,2 DLF Ltd. UNITECH Ltd. 2007 2008 2009 DLF  Ltd. UNITECH  Ltd. 2009 0,18106 0,2178 2008 0,379 0,3198 2007 0,189 0,599 samedi 28 novembre 2009
    • Fixed  Assets  Turnover  Ra8o 40 30 20 10 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 1,558 17,033 2008 3,752 29,185 2008 2007 3,45 35,961 2009 samedi 28 novembre 2009
    • Average  Collec8on  Period 200 150 100 50 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2009 27,479 157,5538 2007 2008 96,533 96,28 2008 2007 55,776 14,22 2009 samedi 28 novembre 2009
    • Total  Assets  Turnover  Ra8o 0,6 0,5 0,3 0,2 0 DLF  Ltd. UNITECH  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 0,1286 0,1743 2008 2008 0,28149 0,2732 2009 2007 0,1527 0,525 samedi 28 novembre 2009
    • Inventory  Turnover  Ra8o 1,0 0,9 0,7 0,6 0,4 0,3 0,1 0 UNITECH  Ltd. DLF  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 0,4267 0,2123 2008 0,933 0,3953 2008 2007 0,2647 0,5641 2009 samedi 28 novembre 2009
    • Inventory  Holding  Period 2000 1600 1200 800 400 0 UNITECH  Ltd. DLF  Ltd. DLF  Ltd. UNITECH  Ltd. 2007 2009 855,4 1719,265 2008 391,211 923,349 2008 2007 1378,919 647,048 2009 samedi 28 novembre 2009
    • INVENTORY EVALUATION ANALYSIS Unitech: Materials etc are valued at lower of cost or market value Scrap valued at Net realizable value Work in Progress valued at estimated cost. Shuttering and tools valued at amortized cost, spread over 3 years samedi 28 novembre 2009
    • INVENTORY EVALUATION ANALYSIS DLF: Land and plots at the commencement of construction are valued at lower of cost/ estimated cost and net realizable value. Constructed properties other than Special Economic Zone (SEZ) projects is valued at lower of cost/ estimated cost and net realizable value samedi 28 novembre 2009