CONSTRUCTION INDUSTRY
                           COMPANY COMPARISON



                   FINANCIAL ACCOUNTING
           ...
CONSTRUCTION INDUSTRY
                           COMPANY COMPARISON




samedi 28 novembre 2009
CONSTRUCTION INDUSTRY
                           COMPANY COMPARISON




                SINCE 1971. LAND BANK    STARTED A...
CONSTRUCTION INDUSTRY
                           COMPANY COMPARISON




                SINCE 1971. LAND BANK    STARTED A...
samedi 28 novembre 2009
INDIA’S LARGEST REAL ESTATE DEVELOPMENT COMPANY - 39,369 CRORE
                 RUPEES TOTAL ASSETS (2009)

              ...
samedi 28 novembre 2009
CLAIMS TO BE INDIA’S SECOND LARGEST REAL-ESTATE
                   INVESMENT COMPANY - 10,538 CRORE RUPEES TOTAL ASSETS
  ...
ECONOMIC ANALYSIS

                  In recent years the Indian economy has been, and expects to
                  continu...
SECTOR ANALYSIS

                  The Real Estate sector was amongst the worst hit by the
                  global slowdo...
Net	
  Profit	
  Margin	
  (PAT/Sales)	
  (%)

                          60


                                             ...
Net	
  Profit	
  Margin	
  2009	
  (%)


                                   0      10                    20      30        ...
Gross	
  Profit	
  Margin	
  (%)


                                                                                        ...
Opera8ng	
  Ra8o	
  (Total	
  Opera8ng	
  Expenses/Sales)


                          100

                               ...
Cash	
  Opera8ng	
  Profit	
  Ra8o


                          65
                                                         ...
Opera8ng	
  Ra8o	
  (%)(Total	
  Opera8ng	
  Profit/Sales)


                          50


                               ...
Return	
  On	
  Equity
                                                                                                   ...
Return	
  On	
  Investment


                                                                  0,3




                   ...
Earnings	
  Per	
  Share


                          16




                          12




                             ...
Dividend	
  Per	
  Share                                  2007
                                                           ...
Dividend	
  Payout	
  Ra8o


                                                                                             ...
Liquid	
  Ra8o


                                                                                                         ...
Super	
  Quick	
  Ra8o


           0,500




             0,375



               0,250



                0,125



     ...
Debt-­‐Equity	
  Ra8o


            11,0

              9,9

              8,8

              7,7

              6,6

    ...
Interest	
  Coverage	
  Ra8o


                     9,0

                     8,0

                     7,0

             ...
Debtors	
  /	
  Turnover	
  Ra8o	
  (Sales/Sundry	
  Debtors)


           30


            25


             20


       ...
Working Capital Turnover Ratio


                          0,6




                           0,5




                    ...
Fixed	
  Assets	
  Turnover	
  Ra8o


                   40




                   30




                   20




      ...
Average	
  Collec8on	
  Period


           200




             150




               100



                   50



  ...
Total	
  Assets	
  Turnover	
  Ra8o


           0,6




             0,5



              0,3



                 0,2



...
Inventory	
  Turnover	
  Ra8o



          1,0


           0,9


            0,7


             0,6


                0,4...
Inventory	
  Holding	
  Period


      2000


       1600


        1200


          800


          400


               ...
INVENTORY EVALUATION
                                ANALYSIS

             Unitech:

             Materials etc are value...
INVENTORY EVALUATION
                                ANALYSIS


             DLF:

             Land and plots at the comm...
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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

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DLF Unitech Comparative Financial Analysis

  1. 1. CONSTRUCTION INDUSTRY COMPANY COMPARISON FINANCIAL ACCOUNTING GROUP TWO samedi 28 novembre 2009
  2. 2. CONSTRUCTION INDUSTRY COMPANY COMPARISON samedi 28 novembre 2009
  3. 3. 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
  4. 4. 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
  5. 5. samedi 28 novembre 2009
  6. 6. 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
  7. 7. samedi 28 novembre 2009
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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

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