Bharti Infratel reports 32.0% CAPEX growth and 7.8% Revenue growth
27-04-2015 • About Bharti Infratel (
$INFRATEL) • By InTwits
Bharti Infratel reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bharti Infratel has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.8%. At the same time it's a lot of higher than industry average of 14.8%.
- CAPEX is quite volatile: 5,994 in FY2015, 3,647 in FY2014, 4,762 in FY2013, 5,689 in FY2012, 1,518 in FY2011
- The company has highly profitable business model: ROIC is at 12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bharti Infratel ($INFRATEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 85,081 | 94,521 | 102,720 | 108,267 | 116,683 | 7.8% |
| EBITDA | 31,288 | 35,343 | 38,302 | 44,001 | 50,041 | 13.7% |
| Net Income | 5,515 | 7,491 | 10,025 | 15,179 | 19,924 | 31.3% |
Balance Sheet
|
|---|
| Cash | 125 | 468 | 520 | 1,640 | 285 | -82.6% |
| Short Term Debt | 5,469 | 11,117 | 2,935 | 7,579 | 10,159 | 34.0% |
| Long Term Debt | 37,170 | 23,889 | 32,296 | 25,844 | 15,663 | -39.4% |
Cash flow
|
|---|
| Capex | 24,309 | 15,713 | 16,784 | 15,742 | 20,781 | 32.0% |
Ratios
|
|---|
| Revenue growth | -42.6% | 11.1% | 8.7% | 5.4% | 7.8% | |
| EBITDA growth | 29.4% | 13.0% | 8.4% | 14.9% | 13.7% | |
| EBITDA Margin | 36.8% | 37.4% | 37.3% | 40.6% | 42.9% | 2.2% |
| Net Income Margin | 6.5% | 7.9% | 9.8% | 14.0% | 17.1% | 3.1% |
| CAPEX, % of revenue | 28.6% | 16.6% | 16.3% | 14.5% | 17.8% | 3.3% |
| ROIC | 5.9% | 7.3% | 7.9% | 10.3% | 12.9% | 2.7% |
| ROE | 4.0% | 5.3% | 6.3% | 8.6% | 11.4% | 2.7% |
| Net Debt/EBITDA | 1.4x | 1.0x | 0.9x | 0.7x | 0.5x | -0.2x |
Revenue and profitability
Bharti Infratel's Revenue increased on 7.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from 40.6% to 42.9% in FY2015.
Net Income marign increased on 3.1 pp from 14.0% to 17.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bharti Infratel's CAPEX/Revenue was 17.8% in FY2015. Bharti Infratel showed small growth in CAPEX/Revenue of 1.2 pp from 16.6% in FY2012 to 17.8% in FY2015. Average CAPEX/Revenue for the last three years was 16.2%.
Return on investment
The company operates at good ROIC (12.93%) while ROE is low (11.37%). ROIC increased on 2.7 pp from 10.3% to 12.9% in FY2015. ROE increased on 2.7 pp from 8.6% to 11.4% in FY2015.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.7x to 0.5x in FY2015. Debt dropped on 22.7% in FY2015 while cash dropped on 82.6% in FY2015.
Valuation
The company's trades at EV/EBITDA 15.5x and P/E 37.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 26.5x with the industry average at 4.7x.
Management team
Bharti Infratel's CEO Devender Singh Rawat has spent 8 years at the company. Bharti Infratel's CFO is Pankaj Miglani. Pankaj Miglani has 7 years tenure at the company.
Appendix 1: Peers in Other Telecom Services
Below you can find Bharti Infratel benchmarking vs. other companies in Other Telecom Services 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 |
|---|
| Onmobile Global ($ONMOBILE) | -46.9% | 18.8% | 13.7% | 19.3% | |
| Gtl ($GTL) | 43.4% | -40.5% | 39.5% | -37.8% | |
| |
|---|
| Median (2 companies) | -1.8% | -10.9% | 26.6% | -9.2% | |
|---|
| Bharti Infratel ($INFRATEL) | | 11.1% | 8.7% | 5.4% | 7.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Onmobile Global ($ONMOBILE) | 23.2% | 22.3% | 22.2% | 15.4% | |
| Gtl ($GTL) | | 6.2% | 5.8% | 12.3% | |
| |
|---|
| Median (2 companies) | 23.2% | 14.3% | 14.0% | 13.9% | |
|---|
| Bharti Infratel ($INFRATEL) | 36.8% | 37.4% | 37.3% | 40.6% | 42.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Onmobile Global ($ONMOBILE) | 14.5% | 15.7% | 8.6% | 24.3% | |
| Gtl ($GTL) | | 3.8% | 2.6% | 2.3% | |
| |
|---|
| Median (2 companies) | 14.5% | 9.8% | 5.6% | 13.3% | |
|---|
| Bharti Infratel ($INFRATEL) | 28.6% | 16.6% | 16.3% | 14.5% | 17.8% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gtl ($GTL) | | | -0.5% | 1.4% | |
| Onmobile Global ($ONMOBILE) | 8.3% | 6.3% | 6.4% | -0.3% | |
| |
|---|
| Median (2 companies) | 8.3% | 6.3% | 2.9% | 0.5% | |
|---|
| Bharti Infratel ($INFRATEL) | 5.9% | 7.3% | 7.9% | 10.3% | 12.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gtl ($GTL) | | 36.2x | 26.8x | 16.0x | |
| Onmobile Global ($ONMOBILE) | -0.2x | -0.6x | -0.7x | 0.1x | |
| |
|---|
| Median (2 companies) | -0.2x | 17.8x | 13.1x | 8.0x | |
|---|
| Bharti Infratel ($INFRATEL) | 1.4x | 1.0x | 0.9x | 0.7x | 0.5x |
