Sterling Holiday Resorts (India) reports 26.2% revenue growth in FY2015 and 5.7 pp EBITDA Margin growth from -6.0% to -0.31%
29-04-2015 • About Sterling Holiday Resorts (India) (
$STERLINH) • By InTwits
Sterling Holiday Resorts (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sterling Holiday Resorts (India) doesn't have a profitable business model yet: FY2015 ROIC is -4.2%
- The company operates at negative EBITDA Margin: -0.3%
- Sterling Holiday Resorts (India) motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -13.4% for the sames years0
- The company has unprofitable business model: ROIC is at -4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sterling Holiday Resorts (India) ($STERLINH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 425 | 722 | 1,087 | 1,319 | 1,665 | 26.2% |
| EBITDA | -220 | -175 | -221 | -79 | -5 | |
| Net Income | -328 | -413 | -213 | -160 | 5 | |
Balance Sheet
|
|---|
| Cash | 24 | 26 | 15 | 91 | 61 | -33.1% |
| Short Term Debt | 311 | 0 | 89 | 14 | 0 | -100.0% |
| Long Term Debt | 4 | 6 | 211 | 1 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 52 | 352 | 548 | 246 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -78.1% | 69.9% | 50.6% | 21.3% | 26.2% | |
| EBITDA growth | -783.6% | -20.6% | 26.4% | -64.3% | -93.6% | |
| EBITDA Margin | -51.8% | -24.2% | -20.3% | -6.0% | -0.3% | 5.7% |
| Net Income Margin | -77.3% | -57.2% | -19.6% | -12.1% | 0.3% | 12.4% |
| CAPEX, % of revenue | 12.2% | 48.8% | 50.4% | 18.7% | | -18.7% |
| ROIC | -18.1% | -111.1% | -38.3% | -9.6% | -4.2% | 5.3% |
| ROE | | | -39.8% | -10.2% | 0.2% | 10.4% |
Revenue and profitability
The company's Revenue surged on 26.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 3.8% to 5.6% in FY2015.
Net Income marign surged on 12.4 pp from -12.1% to 0.31% in FY2015.
Return on investment
The company operates at negative ROIC (-4.22%) and low but positive ROE (0.21%). ROIC increased on 5.3 pp from -9.6% to -4.2% in FY2015. ROE jumped on 10.4 pp from -10.2% to 0.21% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash dropped on 33.1% in FY2015.
Appendix 1: Peers in Hotels
Below we provide Sterling Holiday Resorts (India) benchmarking against other companies in Hotels 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Byke Hospitality ($THEBYKE) | -83.8% | 47.6% | 105.7% | 54.3% | |
| Sayaji Hotels ($SAYAJIHOTL) | 26.3% | 18.2% | 24.5% | 29.4% | |
| Asian Hotels (East) ($AHLEAST) | -62.1% | 3.4% | 76.9% | 18.9% | |
| Hotel Leelaventure ($HOTELEELA) | -39.6% | 23.2% | 12.7% | 11.4% | |
| Mahindra Holidays & Resorts India ($MHRIL) | -43.2% | 15.5% | 27.8% | 10.5% | |
| |
|---|
| Median (15 companies) | -33.4% | 14.9% | 8.6% | 5.5% | |
|---|
| Sterling Holiday Resorts (India) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 36.6% | 10.8% | 22.9% | 26.9% | |
| Kamat Hotels (India) ($KAMATHOTEL) | 31.9% | 29.7% | 22.1% | 26.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | |
| Country Club (India) ($COUNCLB) | 31.8% | 34.2% | 32.3% | 24.2% | |
| Royale Manor Hotels & Industries ($RAYALEMA) | 24.1% | 36.3% | 23.5% | 23.2% | |
| |
|---|
| Median (14 companies) | 25.3% | 21.9% | 22.9% | 21.0% | |
|---|
| Sterling Holiday Resorts (India) ($STERLINH) | -51.8% | -24.2% | -20.3% | -6.0% | -0.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Country Club (India) ($COUNCLB) | 53.8% | 58.7% | 36.6% | 49.6% | |
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.4% | 26.0% | 26.5% | 15.4% | |
| Oriental Hotels ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | |
| Sayaji Hotels ($SAYAJIHOTL) | 7.5% | 18.9% | 17.5% | 12.4% | |
| |
|---|
| Median (12 companies) | 27.3% | 26.0% | 17.6% | 8.8% | |
|---|
| Sterling Holiday Resorts (India) ($STERLINH) | 12.2% | 48.8% | 50.4% | 18.7% | |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.1% | 13.4% | 22.2% | 16.3% | |
| Sayaji Hotels ($SAYAJIHOTL) | 10.2% | 13.1% | 9.4% | 14.2% | |
| Fomento Resorts & Hotels ($FOMEHOT) | 13.6% | 10.6% | 13.8% | 11.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | |
| |
|---|
| Median (29 companies) | 7.9% | 5.9% | 5.0% | 4.1% | |
|---|
| Sterling Holiday Resorts (India) ($STERLINH) | -18.1% | -111.1% | -38.3% | -9.6% | -4.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | |
| Asian Hotels (North) ($ASIANHOTNR) | 9.1x | 28.4x | 11.0x | 15.4x | |
| Kamat Hotels (India) ($KAMATHOTEL) | 15.0x | 13.6x | 17.8x | 15.1x | |
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | |
| |
|---|
| Median (20 companies) | 2.0x | 1.9x | 2.1x | 1.0x | |
|---|
