The Phoenix Mills CAPEX dropped on 92.3% in 2015 while Revenue jumped on 14.1%
28-05-2015 • About The Phoenix Mills (
$PHOENIXLTD) • By InTwits
The Phoenix Mills reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The Phoenix Mills has high CAPEX intensity: 5 year average CAPEX/Revenue was 105.8%. At the same time it's a lot of higher than industry average of 7.7%.
- CAPEX is quite volatile: 1,200 in FY2015, 15,515 in FY2014, 5,077 in FY2013, 6,640 in FY2012, 2,907 in FY2011
- The company has business model with average profitability: ROIC is at 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
The Phoenix Mills ($PHOENIXLTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,102 | 3,945 | 4,699 | 14,485 | 16,533 | 14.1% |
| EBITDA | 1,509 | 2,159 | 2,643 | 6,792 | 7,632 | 12.4% |
| Net Income | 842 | 1,056 | 842 | 1,285 | 354 | -72.4% |
Balance Sheet
|
|---|
| Cash | 809 | 988 | 286 | 543 | 904 | 66.4% |
| Short Term Debt | 487 | 2,546 | 5,215 | 5,733 | 5,833 | 1.7% |
| Long Term Debt | 9,131 | 14,138 | 16,741 | 28,328 | 28,190 | -0.5% |
Cash flow
|
|---|
| Capex | 2,907 | 6,640 | 5,077 | 15,515 | 1,200 | -92.3% |
Ratios
|
|---|
| Revenue growth | -89.4% | 87.7% | 19.1% | 208.3% | 14.1% | |
| EBITDA growth | 93.7% | 43.0% | 22.4% | 157.0% | 12.4% | |
| EBITDA Margin | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% | -0.7% |
| Net Income Margin | 40.1% | 26.8% | 17.9% | 8.9% | 2.1% | -6.7% |
| CAPEX, % of revenue | 138.3% | 168.3% | 108.0% | 107.1% | 7.3% | -99.8% |
| ROIC | 4.5% | 4.9% | 5.4% | 11.1% | 10.0% | -1.0% |
| ROE | 5.1% | 6.2% | 4.8% | 7.4% | 2.1% | -5.3% |
| Net Debt/EBITDA | 5.8x | 7.3x | 8.2x | 4.9x | 4.3x | -0.6x |
Revenue and profitability
The Phoenix Mills's Revenue jumped on 14.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 20.4 pp from 58.3% to 78.8% in FY2015.
Net Income marign decreased on 6.7 pp from 8.9% to 2.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 The Phoenix Mills had CAPEX/Revenue of 7.3%. The Phoenix Mills's CAPEX/Revenue dropped on 161 pp from 168% in FY2012 to 7.3% in FY2015. It's average CAPEX/Revenue for the last three years was 74.1%.
Return on investment
The company operates at low ROIC (10.05%) and ROE (2.09%). ROIC decreased slightly on 1.0 pp from 11.1% to 10.0% in FY2015. ROE decreased on 5.3 pp from 7.4% to 2.1% in FY2015.
Leverage (Debt)
Debt level is 4.3x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 4.9x to 4.3x in FY2015. Debt showed almost no change in FY2015 while cash surged on 66.4% in FY2015.
Valuation
The Phoenix Mills's trades at EV/EBITDA 11.3x and P/E 149.4x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 13.4x with the industry average at 4.7x.
Appendix 1: Peers in Realty
Below you can find The Phoenix Mills benchmarking vs. other companies in Realty industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | | -16.0% | 77.7% | 2,963.6% | -67.3% |
| Nitesh Estates ($NITESHEST) | | -6.3% | -28.7% | 259.1% | -3.4% |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Lancor Holdings ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| Arihant Superstructures ($ASL) | | -36.5% | 9.1% | 42.0% | 7.8% |
| |
|---|
| Median (33 companies) | -23.4% | -1.6% | 3.4% | -4.5% | 11.4% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | | 87.7% | 19.1% | 208.3% | 14.1% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | 78.9% |
| Tci Developers ($TCIDEVELOP) | | | | | 75.9% |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| Sunteck Realty ($SUNTECK) | 33.7% | 32.8% | 18.1% | 30.3% | 44.2% |
| Parsvnath Developers ($PARSVNATH) | 50.3% | 47.0% | 68.0% | 37.3% | 42.6% |
| |
|---|
| Median (27 companies) | 23.3% | 19.4% | 13.4% | 19.8% | 24.1% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| Poddar Developers ($PODDARDEV) | 7.8% | 15.4% | 2.7% | 0.3% | 6.0% |
| |
|---|
| Median (23 companies) | 5.3% | 4.7% | 2.3% | 3.5% | 2.4% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | 6.8% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
| |
|---|
| Median (50 companies) | 9.4% | 5.9% | 4.6% | 5.6% | 7.6% |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 4.5% | 4.9% | 5.4% | 11.1% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 4.8x | 5.0x | 4.0x |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 5.8x | 7.3x | 8.2x | 4.9x | 4.3x |
