Peninsula Land LtdQ2 FY17
Peninsula Land Ltd Q2 FY17 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹15.4Market Cap: ₹549 CrSector: Realty
Management growth scorecard
Revenue
Category 4
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
No
1 of 4 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 4- Sales momentum is positive, with strong bookings seen at the Hinjewadi project post-possession (Page 8).
- New sales of Rs. 235 crores recorded in Q2 FY17 versus Rs. 165 crores in the previous quarter, indicating healthy demand (Page 3).
- The company plans to launch new phases in existing projects like Nepean Sea Road and Sewri Phase-II upon regulatory approvals, expecting development progress to support future sales (Page 8-9).
- Some projects like Mahadevpura in Bangalore have been deferred and may be subject to exit options (Page 8).
- Demonetization impact is expected to be short-term; management anticipates normalcy and recovery in sales trends across markets including South Mumbai and Pune (Pages 7-9).
- Land monetization and refinancing efforts (Rs. 450 crores from Brookfield) provide financial support for growth (Pages 4-5).
- Overall, growth in sales and revenue is anticipated as new launches come online and demonetization effects subside.
See what Peninsula Land Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- During the quarter, Peninsula Land concluded a transaction with Brookfield Investment Group, raising Rs. 450 crores of equity-like money with a tenure of 6 years.
- This infusion helped refinance some existing debt and elongate the maturity profile of the company's borrowings.
- There was no specific mention of any upcoming or future fundraising through new debt or equity beyond this transaction.
- The company is focused on progressing ongoing projects and selectively considering options such as exiting certain deals (e.g., Mahadevpura in Bangalore).
- Debt status: Net debt around Rs. 1822 crores with a reduced weighted average cost of borrowing at 12.9%.
- No immediate plans to develop further in some projects until better market uptake is seen.
In summary, the latest funding activity involved the Brookfield equity infusion aimed at refinancing, with no explicit announcements of new fundraising planned ahead.
See what Peninsula Land Ltd management said on order book — free account, 30 seconds.
Capex plans
No- Peninsula Land is moving forward with the submission of plans for IOD (Intimation of Disapproval) for the Nepean Sea Road project, indicating ongoing development efforts.
- The Nepean Sea Road project is out of the heritage precinct and MHADA approvals have been received, facilitating progress.
- Mahadevpura (Bangalore) project launch is deferred as the company is exploring options, including possibly exiting the deal.
- Ashok Astoria, Nirvaan, Beleza phases are currently not being further developed until improved market demand signs are visible.
- No immediate launches detailed for Celestia Spaces or Sewri Phase-II; Nepean Sea Road updates expected next quarter.
- No mention of new strategic investments beyond the recent Rs. 450 crore equity infusion from Brookfield Group aimed at refinancing and elongating debt maturity.
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Margin guidance
Category 3- Peninsula Land showed good sales growth in Q2 FY17 with new sales of Rs. 235 crores vs Rs. 165 crores in the prior quarter.
- EBITDA improved from Rs. 30 crores to Rs. 37 crores, indicating operational improvement.
- PAT was negative at Rs. (-9.5) crores due to IndAS accounting changes but the company expects improvement.
- Positive momentum from projects like Carmichael (50% sales completed with 75% construction) and Hinjewadi (project well received).
- Debt refinancing via Rs. 450 crores equity infusion from Brookfield Group improved liquidity and reduced borrowing cost (12.9% weighted average).
- Real estate sales in key micro-markets expected to normalize post short-term demonetization impact.
- New launches (Nepean Sea Road, Sewri Phase-II) progressing, with updates expected next quarter.
- Management expects impact of demonetization to be short-term and earnings recovery in upcoming quarters as market demand stabilizes.
Order book
The transcript does not explicitly mention the current or expected orderbook/pending orders for Peninsula Land. However, some relevant points related to project developments and sales pipeline include:
- Nepean Sea Road project: Plans for IOD submission in progress, updates expected next quarter.
- Hinjewadi project: Completed Phase-I handed over, strong sales observed post-completion.
- South Bombay projects (Bishop, Carmichael Residences): Good sales momentum, temporary short-term impact expected only.
- Salsette (Byculla) project: Decent pre-sales achieved; partnership issues resolved; sales currently muted post demonetization but footfalls increasing.
- Mahadevpura (Bangalore) project: Launch deferred, exploring exit options.
- Phase-II and III of Ashok Meadows: Work in progress with alternative plans; launch pending.
- Land monetization initiatives ongoing (Hyderabad land sold for Rs. 25 crores; office in Pune sold for Rs. 12 crores).
- Positive outlook on launch pipeline, subject to market conditions and demand.
No explicit orderbook value given.
How does Peninsula Land Ltd rank vs peers in Realty?
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