Management sounded negative on the underlying real estate market with transactions having dried up, but thinks there is better news on the competition front wherein it has seen intensity of competition from companies like Commonfloor (unlisted) and Housing(unlisted) reduce, even though Magicbricks (unlisted) continues to be pretty aggressive. The company believes that funding has started to tighten for private players and the fact that the underlying real estate market is sluggish is not helping the cause.
99acres revenue growth has fallen from ~40-50% y-y four to eight quarters ago to ~12% y-y growth in 1QFY16 and the company made PBT losses of INR361mn in 1QFY16. Our current expectations build FY15-17F revenue CAGR of 18% and FY16/17F PBT losses of INR1bn/0.7bn
