Vascon Engineers EBITDA dropped on 842% in 2015 and EBITDA Margin dropped on 17.3 pp from 2.0% to -15.2%
13-05-2015 • About Vascon Engineers (
$VASCONEQ) • By InTwits
Vascon Engineers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vascon Engineers doesn't have a profitable business model yet: FY2015 ROIC is -11.5%
- EBITDA Margin is declining: -15.2% in FY2015 vs. 2.0% in FY2014 vs. 10.1% in FY2011
- EBITDA Margin is quite volatile: -15.2% in FY2015, 2.0% in FY2014, 3.4% in FY2013, 4.4% in FY2012, 10.1% in FY2011
- Vascon Engineers has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 6.0%.
- CAPEX is quite volatile: 133 in FY2015, 232 in FY2014, 156 in FY2013, 87.0 in FY2012, 466 in FY2011
- The company has unprofitable business model: ROIC is at -11.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vascon Engineers ($VASCONEQ) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,230 | 7,121 | 7,076 | 6,239 | 6,227 | -0.2% |
| EBITDA | 1,030 | 315 | 244 | 128 | -949 | -842.2% |
| Net Income | 648 | 134 | -167 | -439 | -1,440 | |
Balance Sheet
|
|---|
| Cash | 830 | 301 | 308 | 296 | 555 | 87.7% |
| Short Term Debt | 1,770 | 2,349 | 2,576 | 2,833 | 3,044 | 7.5% |
| Long Term Debt | 1,934 | 582 | 460 | 770 | 301 | -60.9% |
Cash flow
|
|---|
| Capex | 466 | 87 | 156 | 232 | 133 | -42.5% |
Ratios
|
|---|
| Revenue growth | 36.2% | -30.4% | -0.6% | -11.8% | -0.2% | |
| EBITDA growth | 3.3% | -69.4% | -22.5% | -47.6% | -842.2% | |
| EBITDA Margin | 10.1% | 4.4% | 3.4% | 2.0% | -15.2% | -17.3% |
| Net Income Margin | 6.3% | 1.9% | -2.4% | -7.0% | -23.1% | -16.1% |
| CAPEX, % of revenue | 4.6% | 1.2% | 2.2% | 3.7% | 2.1% | -1.6% |
| ROIC | 9.0% | 1.2% | 0.4% | -0.5% | -11.5% | -10.9% |
| ROE | 9.4% | 1.9% | -2.3% | -6.4% | -24.5% | -18.1% |
| Net Debt/EBITDA | 2.8x | 8.4x | 11.2x | 25.9x | | -25.9x |
Revenue and profitability
Vascon Engineers's Revenue showed almost no change in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.3 pp from 2.0% to -15.2% in FY2015.
Net Income marign dropped on 16.1 pp from -7.0% to -23.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.1%. CAPEX/Revenue increased slightly on 0.92 pp from 1.2% in FY2012 to 2.1% in FY2015. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at negative ROIC (-11.48%) and ROE (-24.45%). ROIC dropped on 10.9 pp from -0.55% to -11.5% in FY2015. ROE dropped on 18.1 pp from -6.4% to -24.5% in FY2015.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 25.9x from 25.9x to in FY2015. Debt decreased on 7.2% in FY2015 while cash surged on 87.7% in FY2015.
Appendix 1: Peers in Realty
Below you can find Vascon Engineers benchmarking vs. other companies in Realty 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 |
|---|
| Sunteck Realty ($SUNTECK) | -94.4% | -16.0% | 77.7% | 2,963.6% | |
| Nitesh Estates ($NITESHEST) | -63.3% | -6.3% | -28.7% | 259.1% | |
| The Phoenix Mills ($PHOENIXLTD) | -89.4% | 87.7% | 19.1% | 208.3% | |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Lancor Holdings ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -12.6% | 0.6% | 5.6% | -1.8% | 14.1% |
|---|
| Vascon Engineers ($VASCONEQ) | | -30.4% | -0.6% | -11.8% | -0.2% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | |
| Hubtown ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| Pvp Ventures ($PVP) | -644.3% | | 73.2% | 51.1% | |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | |
| |
|---|
| Median (33 companies) | 24.3% | 20.1% | 18.1% | 20.1% | 28.7% |
|---|
| Vascon Engineers ($VASCONEQ) | 10.1% | 4.4% | 3.4% | 2.0% | -15.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | |
| Prestige Estates Projects ($PRESTIGE) | 23.3% | 37.7% | 30.2% | 18.8% | |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | |
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | |
| |
|---|
| Median (29 companies) | 5.5% | 4.9% | 2.6% | 3.5% | 1.9% |
|---|
| Vascon Engineers ($VASCONEQ) | 4.6% | 1.2% | 2.2% | 3.7% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | |
| |
|---|
| Median (50 companies) | 9.4% | 5.9% | 5.1% | 5.7% | 12.7% |
|---|
| Vascon Engineers ($VASCONEQ) | 9.0% | 1.2% | 0.4% | -0.5% | -11.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | |
| Ajmera Realty & Infra India ($AJMERA) | 2.8x | 4.5x | 10.7x | 13.8x | |
| |
|---|
| Median (39 companies) | 4.2x | 5.1x | 4.8x | 4.9x | 2.8x |
|---|
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
