Lic Housing Finance EBITDA surged on 16.0% in 2015 and Revenue surged on 15.8%

18-04-2015 • About Lic Housing Finance ($LICHSGFIN) • By InTwits

Lic Housing Finance reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Lic Housing Finance has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
It operates with medium-size leverage: Net Debt/EBITDA is 9.3x while industry average is 8.4x

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Lic Housing Finance ($LICHSGFIN) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	48,747	62,446	77,348	93,392	108,121	15.8%
EBITDA	43,944	58,338	73,389	89,823	104,224	16.0%
Net Income	9,519	9,199	10,475	13,182	13,956	5.9%
Balance Sheet
Cash	5,652	15,587	14,165	30,690	29,870	-2.7%
Short Term Debt	96,709	112,959	143,830	163,943	188,849	15.2%
Long Term Debt	372,140	461,113	562,679	677,123	805,186	18.9%
Cash flow
Capex	195	360	78	76	185	143.5%
Ratios
Revenue growth	-65.2%	28.1%	23.9%	20.7%	15.8%
EBITDA growth	32.7%	32.8%	25.8%	22.4%	16.0%
EBITDA Margin	90.1%	93.4%	94.9%	96.2%	96.4%	0.2%
Net Income Margin	19.5%	14.7%	13.5%	14.1%	12.9%	-1.2%
CAPEX, % of revenue	0.4%	0.6%	0.1%	0.1%	0.2%	0.1%
ROE	24.9%	18.6%	17.1%	18.7%	18.0%	-0.6%
Net Debt/EBITDA	10.5x	9.6x	9.4x	9.0x	9.3x	0.2x

Revenue and profitability

Lic Housing Finance's Revenue jumped on 15.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 14.2% to 15.2% in FY2015.

Net Income marign decreased slightly on 1.2 pp from 14.1% to 12.9% in FY2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 0.17% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.12%.

Leverage (Debt)

Debt level is 9.3x Net Debt / EBITDA and 9.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 9.0x to 9.3x in FY2015. Debt jumped on 18.2% in FY2015 while cash decreased on 2.7% in FY2015.

Management team

Sunita Sharma is a the company's CEO. Sunita Sharma has spent 5 years at the company. P Narayanan is a The company's CFO. P Narayanan has spent 3 years at the company.

Appendix 1: Peers in Housing Finance

Below you can find Lic Housing Finance benchmarking vs. other companies in Housing Finance 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	FY2011	FY2012	FY2013	FY2014	FY2015
Can Fin Homes ($CANFINHOME)	-75.1%	24.0%	36.9%	47.2%
Housing Development Finance Corp ($HDFC)	108.7%	17.5%	18.8%	13.4%
Gic Housing Finance ($GICHSGFIN)	-49.5%	2.6%	26.1%	12.8%
Median (3 companies)	-49.5%	17.5%	26.1%	13.4%
Lic Housing Finance ($LICHSGFIN)		28.1%	23.9%	20.7%	15.8%

Top companies by EBITDA margin, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Can Fin Homes ($CANFINHOME)	92.7%	92.2%	91.5%	92.0%
Gic Housing Finance ($GICHSGFIN)	84.3%	89.0%	88.2%	88.7%
Housing Development Finance Corp ($HDFC)	50.4%	57.7%	59.9%	61.9%
Median (3 companies)	84.3%	89.0%	88.2%	88.7%
Lic Housing Finance ($LICHSGFIN)	90.1%	93.4%	94.9%	96.2%	96.4%

Top companies by CAPEX/Revenue, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Housing Development Finance Corp ($HDFC)	1.2%	0.5%	0.5%	0.6%
Can Fin Homes ($CANFINHOME)	0.1%	0.5%	1.2%	0.6%
Gic Housing Finance ($GICHSGFIN)	0.2%	0.4%	0.3%	0.1%
Median (3 companies)	0.2%	0.5%	0.5%	0.6%
Lic Housing Finance ($LICHSGFIN)	0.4%	0.6%	0.1%	0.1%	0.2%

Top companies by ROIC, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Housing Development Finance Corp ($HDFC)	4.8%	4.6%	4.8%	4.8%
Can Fin Homes ($CANFINHOME)		2.8%	2.3%	2.2%
Gic Housing Finance ($GICHSGFIN)
Median (3 companies)	4.8%	3.7%	3.5%	3.5%
Lic Housing Finance ($LICHSGFIN)

Top companies by Net Debt / EBITDA


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Can Fin Homes ($CANFINHOME)	8.8x	8.7x	9.8x	9.9x
Gic Housing Finance ($GICHSGFIN)	8.5x	9.1x	8.0x	8.3x
Housing Development Finance Corp ($HDFC)	7.4x	6.5x	5.9x	6.2x
Median (3 companies)	8.5x	8.7x	8.0x	8.3x
Lic Housing Finance ($LICHSGFIN)	10.5x	9.6x	9.4x	9.0x	9.3x

Lic Housing Finance stock price chart

Lic Housing Finance financials

mln.	FY2010	FY2011	FY2012

Revenue	140,053	48,747	62,446
EBITDA	33,108	43,944	58,338
Net income	6,888	9,519	9,199
CAPEX	79.990	195.1	359.5
Debt	356,242	468,849	574,072
Cash	2,632	5,652	15,587

About Lic Housing Finance

LIC Housing Finance Limited provides loans for purchase, construction, repairs, and renovation etc., of houses/flats to individuals, corporate bodies, builders, and co-operative housing societies in India. It also provides finance on existing property for business/personal needs; loans to professionals for the purchase and construction of clinics, nursing homes, diagnostic centers, and office space, as well as for the purchase of equipment; and finance to individuals engaged in the business of construction of houses or flats for residential purpose and to be sold by them, as well as public deposit schemes. In addition, the company is involved in setting up, running, and maintaining assisted living community center/care homes for senior citizens; marketing various financial products and services; and managing, advising, and administering mutual funds, unit trusts, and investment trusts. Further, it operates as trustee to venture capital trusts and funds; and provides financial and investment advisory services. The company sells its products through home loan agents, direct sales agents, and customer relation associates. As of March 31, 2014, it operated a network of 204 offices in India, and representative offices in Dubai and Kuwait. LIC Housing Finance Limited was incorporated in 1989 and is based in Mumbai, India.