Housing Development Finance Corp revenue surged on 18.6% in 2015 while EBITDA Margin decreased on 2.4 pp from 61.9% to 59.4%
29-04-2015 • About Housing Development Finance Corp (
$HDFC) • By InTwits
Housing Development Finance Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Housing Development Finance Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is at 4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Housing Development Finance Corp ($HDFC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 257,926 | 303,029 | 359,869 | 408,146 | 483,900 | 18.6% |
| EBITDA | 130,066 | 174,736 | 215,547 | 252,498 | 287,531 | 13.9% |
| Net Income | 45,284 | 54,625 | 66,397 | 79,478 | 87,626 | 10.3% |
Balance Sheet
|
|---|
| Cash | 68,185 | 64,814 | 70,717 | 85,881 | 42,619 | -50.4% |
| Short Term Debt | 508,254 | 632,320 | 643,914 | 930,863 | 1,099,576 | 18.1% |
| Long Term Debt | 523,928 | 575,219 | 694,078 | 712,267 | 756,724 | 6.2% |
Cash flow
|
|---|
| Capex | 3,070 | 1,498 | 1,723 | 2,551 | 6,163 | 141.6% |
Ratios
|
|---|
| Revenue growth | 108.7% | 17.5% | 18.8% | 13.4% | 18.6% | |
| EBITDA growth | 16.4% | 34.3% | 23.4% | 17.1% | 13.9% | |
| EBITDA Margin | 50.4% | 57.7% | 59.9% | 61.9% | 59.4% | -2.4% |
| Net Income Margin | 17.6% | 18.0% | 18.5% | 19.5% | 18.1% | -1.4% |
| CAPEX, % of revenue | 1.2% | 0.5% | 0.5% | 0.6% | 1.3% | 0.6% |
| ROIC | 4.8% | 4.6% | 4.8% | 4.8% | 4.6% | -0.1% |
| ROE | 23.0% | 24.1% | 23.7% | 22.9% | 21.2% | -1.7% |
| Net Debt/EBITDA | 7.4x | 6.5x | 5.9x | 6.2x | 6.3x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 18.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 61.9% to 59.4% in FY2015.
Net Income marign decreased slightly on 1.4 pp from 19.5% to 18.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.3% in FY2015. Housing Development Finance Corp showed small growth in CAPEX/Revenue of 0.78 pp from 0.49% in FY2012 to 1.3% in FY2015. Average CAPEX/Revenue for the last three years was 0.79%.
Return on investment
The company operates at good ROE (21.21%) while ROIC is low (4.64%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.7 pp from 22.9% to 21.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.3x and Debt / EBITDA is 6.5x. Net Debt / EBITDA jumped on 0.1x from 6.2x to 6.3x in FY2015. Debt jumped on 13.0% in FY2015 while cash dropped on 50.4% in FY2015.
Valuation
The company's trades at EV/EBITDA 12.9x and P/E 21.6x while industy averages are 10.5x and 26.1x.
Management team
The company's CEO is Keki M Mistry. Keki M Mistry has 8 years tenure at the company.
Appendix 1: Peers in Housing Finance
Below we provide Housing Development Finance Corp benchmarking against other companies in Housing Finance industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Can Fin Homes ($CANFINHOME) | -75.1% | 24.0% | 36.9% | 47.2% | |
| Lic Housing Finance ($LICHSGFIN) | | 28.1% | 23.9% | 20.7% | 15.8% |
| Gic Housing Finance ($GICHSGFIN) | -49.5% | 2.6% | 26.1% | 12.8% | |
| |
|---|
| Median (3 companies) | -62.3% | 24.0% | 26.1% | 20.7% | 15.8% |
|---|
| Housing Development Finance Corp ($HDFC) | | 17.5% | 18.8% | 13.4% | 18.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lic Housing Finance ($LICHSGFIN) | 90.1% | 93.4% | 94.9% | 96.2% | 96.4% |
| Can Fin Homes ($CANFINHOME) | 92.7% | 92.2% | 91.5% | 92.0% | |
| Gic Housing Finance ($GICHSGFIN) | 84.3% | 89.0% | 88.2% | 88.7% | |
| |
|---|
| Median (3 companies) | 90.1% | 92.2% | 91.5% | 92.0% | 96.4% |
|---|
| Housing Development Finance Corp ($HDFC) | 50.4% | 57.7% | 59.9% | 61.9% | 59.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Can Fin Homes ($CANFINHOME) | 0.1% | 0.5% | 1.2% | 0.6% | |
| Gic Housing Finance ($GICHSGFIN) | 0.2% | 0.4% | 0.3% | 0.1% | |
| Lic Housing Finance ($LICHSGFIN) | 0.4% | 0.6% | 0.1% | 0.1% | 0.2% |
| |
|---|
| Median (3 companies) | 0.2% | 0.5% | 0.3% | 0.1% | 0.2% |
|---|
| Housing Development Finance Corp ($HDFC) | 1.2% | 0.5% | 0.5% | 0.6% | 1.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Can Fin Homes ($CANFINHOME) | | 2.8% | 2.3% | 2.2% | |
| Gic Housing Finance ($GICHSGFIN) | | | | | |
| Lic Housing Finance ($LICHSGFIN) | | | | | |
| |
|---|
| Median (3 companies) | | 2.8% | 2.3% | 2.2% | |
|---|
| Housing Development Finance Corp ($HDFC) | 4.8% | 4.6% | 4.8% | 4.8% | 4.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Can Fin Homes ($CANFINHOME) | 8.8x | 8.7x | 9.8x | 9.9x | |
| Lic Housing Finance ($LICHSGFIN) | 10.5x | 9.6x | 9.4x | 9.0x | 9.3x |
| Gic Housing Finance ($GICHSGFIN) | 8.5x | 9.1x | 8.0x | 8.3x | |
| |
|---|
| Median (3 companies) | 8.8x | 9.1x | 9.4x | 9.0x | 9.3x |
|---|
| Housing Development Finance Corp ($HDFC) | 7.4x | 6.5x | 5.9x | 6.2x | 6.3x |
