Adani Ports And Special Economic Zone CAPEX surged on 44.5% in 2015 and Revenue surged on 28.6%

02-05-2015 • About Adani Ports And Special Economic Zone ($ADANIPORTS) • By InTwits

Adani Ports And Special Economic Zone reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Adani Ports And Special Economic Zone has high CAPEX intensity: 5 year average CAPEX/Revenue was 87.4%. At the same time it's a lot of higher than industry average of 15.7%.
CAPEX is quite volatile: 18,010 in FY2015, 12,460 in FY2014, 38,367 in FY2013, 45,600 in FY2012, 18,613 in FY2011
The company has highly profitable business model: ROIC is at 12.1%
It operates with medium-size leverage: Net Debt/EBITDA is 4.3x while industry average is 4.6x

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

Adani Ports And Special Economic Zone ($ADANIPORTS) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	19,372	26,358	34,864	45,813	58,938	28.6%
EBITDA	12,994	17,931	23,835	29,767	39,746	33.5%
Net Income	9,181	11,021	16,232	17,396	23,143	33.0%
Balance Sheet
Cash	520	3,673	7,558	1,132	4,852	328.6%
Short Term Debt	18,756	21,187	13,283	16,456	38,815	135.9%
Long Term Debt	17,169	154,462	102,575	112,884	138,498	22.7%
Cash flow
Capex	18,613	45,600	38,367	12,460	18,010	44.5%
Ratios
Revenue growth	-73.8%	36.1%	32.3%	31.4%	28.6%
EBITDA growth	34.5%	38.0%	32.9%	24.9%	33.5%
EBITDA Margin	67.1%	68.0%	68.4%	65.0%	67.4%	2.5%
Net Income Margin	47.4%	41.8%	46.6%	38.0%	39.3%	1.3%
CAPEX, % of revenue	96.1%	173.0%	110.0%	27.2%	30.6%	3.4%
ROIC	13.7%	9.7%	9.7%	11.7%	12.1%	0.5%
ROE	24.0%	24.5%	29.0%	23.0%	23.7%	0.7%
Net Debt/EBITDA	2.7x	9.6x	4.5x	4.3x	4.3x	0.0x

Revenue and profitability

Adani Ports And Special Economic Zone's Revenue jumped on 28.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.2 pp from 28.9% to 33.1% in FY2015.

Net Income marign increased slightly on 1.3 pp from 38.0% to 39.3% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 the company had CAPEX/Revenue of 30.6%. Adani Ports And Special Economic Zone's CAPEX/Revenue dropped on 142 pp from 173% in FY2012 to 30.6% in FY2015. Average CAPEX/Revenue for the last three years was 55.9%.

Return on investment

The company operates at high and attractive ROE (23.70%) while ROIC is a bit lower (12.14%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.75 pp from 23.0% to 23.7% in FY2015.

Leverage (Debt)

Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 4.5x. Net Debt / EBITDA increased on 0.032x from 4.3x to 4.3x in FY2015. Debt surged on 37.1% in FY2015 while cash surged on 329% in FY2015.

Appendix 1: Peers in Marine Port & Services

Below we provide Adani Ports And Special Economic Zone benchmarking against other companies in Marine Port & Services 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
Essar Ports ($ESSARPORTS)	-4.1%	-42.0%	28.2%	49.4%
Median (1 company)	-4.1%	-42.0%	28.2%	49.4%
Adani Ports And Special Economic Zone ($ADANIPORTS)		36.1%	32.3%	31.4%	28.6%

Top companies by EBITDA margin, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Essar Ports ($ESSARPORTS)	39.4%	81.0%	80.3%	58.3%
Median (1 company)	39.4%	81.0%	80.3%	58.3%
Adani Ports And Special Economic Zone ($ADANIPORTS)	67.1%	68.0%	68.4%	65.0%	67.4%

Top companies by CAPEX/Revenue, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Essar Ports ($ESSARPORTS)	67.1%	66.3%	34.2%	0.9%
Median (1 company)	67.1%	66.3%	34.2%	0.9%
Adani Ports And Special Economic Zone ($ADANIPORTS)	96.1%	173.0%	110.0%	27.2%	30.6%

Top companies by ROIC, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Essar Ports ($ESSARPORTS)	3.8%	9.3%	10.9%	10.9%
Median (1 company)	3.8%	9.3%	10.9%	10.9%
Adani Ports And Special Economic Zone ($ADANIPORTS)	13.7%	9.7%	9.7%	11.7%	12.1%

Top companies by Net Debt / EBITDA


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Essar Ports ($ESSARPORTS)	5.8x	6.1x	5.0x	4.8x
Median (1 company)	5.8x	6.1x	5.0x	4.8x
Adani Ports And Special Economic Zone ($ADANIPORTS)	2.7x	9.6x	4.5x	4.3x	4.3x

Adani Ports And Special Economic Zone stock price chart

Adani Ports And Special Economic Zone financials

mln.	FY2010	FY2011	FY2012

Revenue	73,828	19,372	26,358
EBITDA	9,663	12,994	17,931
Net income	6,760	9,181	11,021
CAPEX	19,144	18,613	45,600
Debt	37,669	35,925	175,650
Cash	6,803	520.5	3,673

About Adani Ports And Special Economic Zone

Adani Ports and Special Economic Zone Limited, together with its subsidiaries, develops and operates ports and port based infrastructure in India. The company operates a port at Mundra, Gujarat; a dry bulk terminal located in Dahej, Gujarat; a bulk and container handling terminal at the port of Hazira, Gujarat; and coal handling terminals at the port of Mormugao, Goa and Visakhapatnam in Andhra Pradesh. It also operates 4 bulk terminals with 15 berths to handle dry and liquid bulk cargo, 3 container terminals with 6 berths, and 2 offshore single point mooring facilities for handling crude cargo at the port of Mundra; a dry bulk cargo terminal with 2 berths at the port of Dahej; and 1 bulk terminal with 3 berths to handle dry and liquid bulk cargo, and 1 container terminal with 2 berths to handle container cargo at the port of Hazira. In addition, the company is developing a bulk terminal located in Kandla, Gujarat; a rail corridor; and road and highway projects. Further, it offers port services, including marine, handling intra-port transport, storage, other value-added, and evacuation services for terminal operators, shipping lines and agents, exporters, importers, and other port users; and infrastructure leasing and logistics services at the Mundra Port through its surrounding infrastructure. Additionally, the company provides multi-modal cargo storage-cum-logistics services; and non scheduled (passenger) services through its aircrafts. The company was formerly known as Mundra Port and Special Economic Zone Limited and changed its name to Adani Ports and Special Economic Zone Limited in January 2012. The company was incorporated in 1998 and is based in Ahmedabad, India. Adani Ports and Special Economic Zone Limited is a subsidiary of Adani Enterprises Limited.