Tourism Finance Corporation Of India Net Debt / EBITDA surged on 0.5x from 5.2x to 5.8x in 2015 and Revenue increased slightly on 1.0%
08-05-2015 • About Tourism Finance Corporation Of India (
$TFCILTD) • By InTwits
Tourism Finance Corporation Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 89.2% in FY2015 vs. 88.8% in FY2014 vs. 89.9% in FY2011
- Tourism Finance Corporation Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.8x while industry average is 5.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tourism Finance Corporation Of India ($TFCILTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,095 | 1,303 | 1,803 | 1,846 | 1,865 | 1.0% |
| EBITDA | 984 | 1,180 | 1,606 | 1,639 | 1,663 | 1.4% |
| Net Income | 444 | 495 | 555 | 585 | 602 | 2.9% |
Balance Sheet
|
|---|
| Cash | 3 | 75 | 0 | 69 | 2 | -97.1% |
| Short Term Debt | 632 | 313 | 1,044 | 0 | 0 | |
| Long Term Debt | 4,584 | 7,586 | 8,065 | 8,615 | 9,565 | 11.0% |
Cash flow
|
|---|
| Capex | 7 | 1 | 60 | 3 | 3 | -4.8% |
Ratios
|
|---|
| Revenue growth | -49.1% | 19.0% | 38.4% | 2.3% | 1.0% | |
| EBITDA growth | 31.0% | 19.9% | 36.1% | 2.0% | 1.4% | |
| EBITDA Margin | 89.9% | 90.6% | 89.1% | 88.8% | 89.2% | 0.3% |
| Net Income Margin | 40.5% | 38.0% | 30.8% | 31.7% | 32.3% | 0.6% |
| CAPEX, % of revenue | 0.7% | 0.1% | 3.3% | 0.2% | 0.1% | -0.0% |
| ROIC | | 6.2% | 5.6% | 6.1% | 5.7% | -0.4% |
| ROE | 13.7% | 13.8% | 13.9% | 13.7% | 13.1% | -0.5% |
| Net Debt/EBITDA | 5.3x | 6.6x | 5.7x | 5.2x | 5.8x | 0.5x |
Revenue and profitability
Tourism Finance Corporation Of India's Revenue increased slightly on 1.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 66.7% to 65.1% in FY2015.
Net Income marign increased slightly on 0.58 pp from 31.7% to 32.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.15% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at good ROE (13.15%) while ROIC is low (5.68%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.51 pp from 13.7% to 13.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.8x and Debt / EBITDA is 5.8x. Net Debt / EBITDA surged on 0.5x from 5.2x to 5.8x in FY2015. Debt jumped on 11.0% in FY2015 while cash dropped on 97.1% in FY2015.
Valuation
The company's trades at EV/EBITDA 8.6x and P/E 7.9x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Financial Institutions
Below you can find Tourism Finance Corporation Of India benchmarking vs. other companies in Financial Institutions 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 ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat State Financial Corporation ($GUJSTATFIN) | | | | | |
| |
|---|
| Median (1 company) | | | | | |
|---|
| Tourism Finance Corporation Of India ($TFCILTD) | | 6.2% | 5.6% | 6.1% | 5.7% |
