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Srei Infrastructure Finance CAPEX dropped on 56.0% in 2015 while Revenue increased on 2.3%

02-05-2015 • About Srei Infrastructure Finance ($SREINFRA) • By InTwits

Srei Infrastructure Finance reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Srei Infrastructure Finance has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 1.9%.
  • CAPEX is quite volatile: 1,737 in FY2015, 3,947 in FY2014, 2,592 in FY2013, 7,167 in FY2012, 5,699 in FY2011
  • It operates with high leverage: Net Debt/EBITDA is 8.0x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Srei Infrastructure Finance ($SREINFRA) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue16,38124,46331,10731,24631,9542.3%
EBITDA12,85119,72926,10126,14325,070-4.1%
Net Income1,7921,1142,6321,3851,302-6.0%
Balance Sheet
Cash8992,3051,5322,6352,8407.8%
Short Term Debt40,72183,08894,912126,636135,2166.8%
Long Term Debt42,36057,27667,54071,03768,042-4.2%
Cash flow
Capex5,6997,1672,5923,9471,737-56.0%
Ratios
Revenue growth77.1%49.3%27.2%0.4%2.3%
EBITDA growth72.1%53.5%32.3%0.2%-4.1%
EBITDA Margin78.5%80.6%83.9%83.7%78.5%-5.2%
Net Income Margin10.9%4.6%8.5%4.4%4.1%-0.4%
CAPEX, % of revenue34.8%29.3%8.3%12.6%5.4%-7.2%
ROE8.2%3.6%8.0%4.0%3.7%-0.3%
Net Debt/EBITDA6.4x7.0x6.2x7.5x8.0x0.5x

Revenue and profitability


The company's Revenue increased on 2.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 the company had CAPEX/Revenue of 5.4%. Srei Infrastructure Finance's CAPEX/Revenue dropped on 23.9 pp from 29.3% in FY2012 to 5.4% in FY2015. Average CAPEX/Revenue for the last three years was 8.8%.

Leverage (Debt)


Company's Net Debt / EBITDA is 8.0x and Debt / EBITDA is 8.1x. Net Debt / EBITDA jumped on 0.5x from 7.5x to 8.0x in FY2015. Debt increased on 2.8% in FY2015 while cash increased on 7.8% in FY2015.

Appendix 1: Peers in Finance (including NBFCs)


Below you can find Srei Infrastructure Finance benchmarking vs. other companies in Finance (including NBFCs) 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 5 FY2011 FY2012 FY2013 FY2014 FY2015
Advance Powerinfra Tech ($ADVPOWER)209.3%
Vishwamitra Financial Services ($VISHWAFIN)65.2%118.5%
Industrial Investment Trust ($IITL)-88.9%119.2%72.5%76.4%
Sks Microfinance ($SKSMICRO)36.7%-62.8%-25.6%55.0%
Muthoot Capital Services ($MUTHTFN)-83.3%81.1%59.3%48.1%
 
Median (23 companies)-51.4%23.2%24.4%20.8%11.9%
Srei Infrastructure Finance ($SREINFRA)49.3%27.2%0.4%2.3%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Rural Electrification Corporation ($RECLTD)97.1%97.2%97.3%96.7%
Pnb Gilts ($PNBGILTS)91.8%94.0%96.4%96.4%96.1%
Bajaj Holdings & Investment ($BAJAJHLDNG)98.7%96.2%95.5%94.4%
IDFC Limited ($IDFC)85.3%88.1%89.6%87.0%81.7%
Bajaj Finserv ($BAJAJFINSV)74.8%77.2%74.2%
 
Median (24 companies)68.2%64.8%65.4%65.5%68.4%
Srei Infrastructure Finance ($SREINFRA)78.5%80.6%83.9%83.7%78.5%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Clarus Finance & Securities ($CLARUS)6.9%
Industrial Investment Trust ($IITL)3.7%1.1%0.3%4.9%
Fortune Financial Services (India) ($FORTUNEF)5.5%1.0%1.3%4.5%
A.K.Capital Services ($AKCAPIT)1.9%0.3%2.9%4.1%
Reliance Capital ($RELCAPITAL)1.8%2.0%0.7%2.5%
 
Median (20 companies)1.7%0.6%0.7%0.9%0.7%
Srei Infrastructure Finance ($SREINFRA)34.8%29.3%8.3%12.6%5.4%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Motilal Oswal Financial Services ($MOTILALOFS)12.0%9.7%11.9%
Shriram City Union Finance ($SHRIRAMCIT)6.1%5.8%5.8%5.7%
Mahindra & Mahindra Financial Services ($M&MFIN)7.3%6.4%6.3%5.3%4.2%
Rural Electrification Corporation ($RECLTD)4.7%5.2%
IDFC Limited ($IDFC)4.8%4.8%5.0%4.3%3.4%
 
Median (52 companies)6.0%4.1%4.6%4.1%4.2%
Srei Infrastructure Finance ($SREINFRA)


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Pnb Gilts ($PNBGILTS)9.0x14.2x11.2x11.3x8.8x
Fortune Financial Services (India) ($FORTUNEF)4.7x9.0x10.8x
Vibrant Global Capital ($VGCL)7.8x23.1x32.8x10.7x
Rural Electrification Corporation ($RECLTD)8.1x8.3x8.0x7.5x
Cholamandalam Investment And Finance Company ($CHOLAFIN)9.4x9.0x7.9x7.4x7.2x
 
Median (39 companies)2.6x4.4x3.6x2.9x6.2x
Srei Infrastructure Finance ($SREINFRA)6.4x7.0x6.2x7.5x8.0x