Ncc reports 31.9% EBITDA growth and almost no change in EBITDA Margin of 10.5%
14-05-2015 • About Ncc (
$NCC) • By InTwits
Ncc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ncc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's in pair with industry average of 5.0%.
- CAPEX is quite volatile: 1,325 in FY2015, 1,573 in FY2014, 1,102 in FY2013, 7,481 in FY2012, 12,402 in FY2011
- The company has business model with average profitability: ROIC is at 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ncc ($NCC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 62,299 | 66,652 | 69,684 | 74,632 | 95,129 | 27.5% |
| EBITDA | 7,293 | 9,993 | 8,516 | 7,580 | 9,997 | 31.9% |
| Net Income | 2,222 | 549 | 564 | 33 | 539 | 1,542.4% |
Balance Sheet
|
|---|
| Cash | 1,563 | 2,268 | 2,381 | 1,179 | 2,520 | 113.8% |
| Short Term Debt | 22,859 | 22,813 | 23,088 | 27,459 | 21,234 | -22.7% |
| Long Term Debt | 20,660 | 27,366 | 13,298 | 11,685 | 12,662 | 8.4% |
Cash flow
|
|---|
| Capex | 12,402 | 7,481 | 1,102 | 1,573 | 1,325 | -15.8% |
Ratios
|
|---|
| Revenue growth | -46.6% | 7.0% | 4.5% | 7.1% | 27.5% | |
| EBITDA growth | 10.3% | 37.0% | -14.8% | -11.0% | 31.9% | |
| EBITDA Margin | 11.7% | 15.0% | 12.2% | 10.2% | 10.5% | 0.4% |
| Net Income Margin | 3.6% | 0.8% | 0.8% | 0.0% | 0.6% | 0.5% |
| CAPEX, % of revenue | 19.9% | 11.2% | 1.6% | 2.1% | 1.4% | -0.7% |
| ROIC | 9.2% | 9.5% | 8.4% | 7.7% | 10.2% | 2.5% |
| ROE | 9.1% | 2.1% | 2.1% | 0.1% | 1.7% | 1.6% |
| Net Debt/EBITDA | 5.8x | 4.8x | 4.0x | 5.0x | 3.1x | -1.9x |
Revenue and profitability
Ncc's Revenue surged on 27.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 10.3% to 13.4% in FY2015.
Net Income marign increased slightly on 0.52 pp from 0.044% to 0.57% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.4% in FY2015. Ncc's CAPEX/Revenue decreased on 9.8 pp from 11.2% in FY2012 to 1.4% in FY2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at low ROIC (10.20%) and ROE (1.75%). ROIC increased on 2.5 pp from 7.7% to 10.2% in FY2015. ROE increased slightly on 1.6 pp from 0.12% to 1.7% in FY2015.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.9x from 5.0x to 3.1x in FY2015. Debt dropped on 13.4% in FY2015 while cash surged on 114% in FY2015.
Appendix 1: Peers in Construction & Engineering
Below you can find Ncc benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| Madhucon Projects ($MADHUCON) | -72.3% | -19.5% | 61.7% | 81.2% | |
| C & C Constructions ($CANDC) | 7.1% | -11.6% | -12.2% | 31.7% | |
| Mbl Infrastructures ($MBLINFRA) | -58.2% | 26.3% | 7.1% | 30.3% | |
| Atlanta ($ATLANTA) | -61.5% | -47.6% | 115.1% | 28.1% | |
| Arss Infrastructure Projects ($ARSSINFRA) | | -5.3% | -34.8% | 17.8% | -27.8% |
| |
|---|
| Median (31 companies) | -20.9% | 11.4% | 6.9% | 6.6% | 7.4% |
|---|
| Ncc ($NCC) | | 7.0% | 4.5% | 7.1% | 27.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Associates ($JPASSOCIAT) | 44.0% | 36.9% | 35.9% | 32.4% | |
| Atlanta ($ATLANTA) | 44.1% | 28.5% | 34.6% | 30.8% | |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 28.0% | 27.2% | 30.0% | 30.0% | |
| Madhucon Projects ($MADHUCON) | 11.6% | 8.4% | 31.9% | 22.1% | |
| Arss Infrastructure Projects ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | 31.3% |
| |
|---|
| Median (29 companies) | 12.4% | 11.9% | 11.2% | 10.7% | 12.8% |
|---|
| Ncc ($NCC) | 11.7% | 15.0% | 12.2% | 10.2% | 10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Madhucon Projects ($MADHUCON) | 149.8% | 234.5% | 155.1% | 76.0% | |
| Jaiprakash Associates ($JPASSOCIAT) | 114.7% | 97.0% | 65.5% | 45.0% | |
| Supreme Infrastructure India ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | |
| Man Infraconstruction ($MANINFRA) | 11.5% | 7.8% | 1.6% | 25.0% | |
| Jmc Projects (India) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | |
| |
|---|
| Median (23 companies) | 5.5% | 7.3% | 8.6% | 6.6% | 4.2% |
|---|
| Ncc ($NCC) | 19.9% | 11.2% | 1.6% | 2.1% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipper ($SKIPPER) | 10.6% | 10.4% | 13.5% | 14.7% | |
| Mbl Infrastructures ($MBLINFRA) | 24.3% | 21.3% | 13.4% | 14.0% | |
| Voltas ($VOLTAS) | 32.9% | 19.6% | 11.7% | 11.8% | |
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | |
| Reliance Industrial Infrastructure ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.7% | 8.6% | 7.1% | 5.6% | 6.6% |
|---|
| Ncc ($NCC) | 9.2% | 9.5% | 8.4% | 7.7% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel Engineering Company ($COROENGG) | 7.1x | | 14.4x | 54.6x | 3.2x |
| Welspun Projects ($WELPROJ) | 71.3x | 6.0x | 2.6x | 20.8x | |
| Punj Lloyd ($PUNJLLOYD) | 6.5x | 6.7x | 6.8x | 16.5x | |
| Madhucon Projects ($MADHUCON) | 40.1x | 96.8x | 19.0x | 16.4x | |
| Hindustan Construction Co ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | 9.3x |
| |
|---|
| Median (32 companies) | 3.7x | 4.5x | 5.7x | 6.6x | 3.0x |
|---|
| Ncc ($NCC) | 5.8x | 4.8x | 4.0x | 5.0x | 3.1x |
