Announcement

Collapse
No announcement yet.

Debt and RE Players

Collapse
X
Collapse

Debt and RE Players

Last updated: July 19 2011
15 | Posts
3282 | Views
  • Time
  • Show
Clear All
new posts

  • Debt and RE Players

    Debt Equity Ratio(Lower the Better) - A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

    Interest Coverage Ratio (Higher the Better) - A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period:

    DLF - It has a very large debt on its book. Even the Debt Equity ratio is very high. Highest among all the players

    Unitech - The debt of 6000 cr may seem high but see the Debt equity ratio of 0.6 shows that it is very manageable. It is infact less than Vipul, shobha and DLF and Godrej. Even the interest coverage ratio of over 3 is very comfortable
    Attached Files
  • #2

    #2

    Re : Debt and RE Players

    All figures are in INR crores. Have a look at DLF debt

    Comment

    • #3

      #3

      Re : Debt and RE Players

      No comments

      I had put in good amount of time in collecting all this

      Comment

      • #4

        #4

        Re : Debt and RE Players

        Nice data Amit...
        I knew about DLF but not others...
        AnantRaj seems to be good.... Would be good to see more builders on this list...

        My take on this: This should be just an indication and not the ultimate builder stability of financial health factor. The reason is black money. Believe it or not, almost every RE builder in India has got 60-80% of its wealth in black money. That is the reason why not a single builder in the world didnt got bankrupt in recession which was triggered by RE...

        Good work..!!

        Comment

        • #5

          #5

          Re : Debt and RE Players

          Originally posted by amit001 View Post
          Debt Equity Ratio(Lower the Better) - A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

          Interest Coverage Ratio (Higher the Better) - A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period:

          DLF - It has a very large debt on its book. Even the Debt Equity ratio is very high. Highest among all the players

          Unitech - The debt of 6000 cr may seem high but see the Debt equity ratio of 0.6 shows that it is very manageable. It is infact less than Vipul, shobha and DLF and Godrej. Even the interest coverage ratio of over 3 is very comfortable
          Hi Amit,

          Have a Little doubt over the figures

          Unitech Ltd total Equity is only
          523.26 Cr, if they have debt of 6K Cr, Then D/E ration comes out to be 11!


          Comment

          • #6

            #6

            Re : Debt and RE Players

            See Unitech D/E as 0.62 on Moneycontrol.....

            Unitech Key Financial Ratios, Unitech Financial Statement & Accounts


            A company can never have his D/E as high as 11....one will not get any funding from any source if its D/E goes beyond 5-6


            Originally posted by DivyanshuG View Post
            Hi Amit,

            Have a Little doubt over the figures

            Unitech Ltd total Equity is only
            523.26 Cr, if they have debt of 6K Cr, Then D/E ration comes out to be 11!

            Attached Files

            Comment

            • #7

              #7

              Re : Debt and RE Players

              good job bro ..... would love to see emaar 's financials if those can be aranged for ??
              and ireo and m3m as well !!!but primarily emaar mgf first !!1

              Comment

              • #8

                #8

                Re : Debt and RE Players

                Bishan bhai, these companies are not listed in India....that the benefit these companies get, no body knows whats happening inside.....

                Emaar International (ME) numbers can be arrnaged....

                Comment

                • #9

                  #9

                  Re : Debt and RE Players

                  Emaar MGF filed a DRHP with SEBI for IPO in 2007 and then again in 2009. Both are available online.

                  2007 DRHP: http://www.moneycontrol.com/news_htm...emaardraft.pdf

                  2009 DRHP: http://www.moneycontrol.com/news_htm...2009/Emaar.pdf

                  If someone is having time then 851 pages of 2009 version contain every possible detail about the land bank (page-81 of DRHP), projects and financials of the company (page-441-442 of PDF file).

                  Comment

                  • #10

                    #10

                    Re : Debt and RE Players

                    D/e

                    Originally posted by amit001 View Post
                    See Unitech D/E as 0.62 on Moneycontrol.....

                    Unitech Key Financial Ratios, Unitech Financial Statement & Accounts


                    A company can never have his D/E as high as 11....one will not get any funding from any source if its D/E goes beyond 5-6
                    Hi
                    Greetings
                    Perhaps anything above 3 can be dangerous. Also need to correlate with the amount invested in construction projects and landbanks basically stock and wip.
                    Typically housing/commercial projects are medium/long gestation and therefore depending on no of projects, land banks -debt can be high for aggressive corporates with large no of projects initially. Those who have offloaded stock in market may have low debt and high cash. So not easy to interpret health of company without additional information.

                    BlessU

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X