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Housing Development & Infrastructure EBITDA Margin dropped on 23.7 pp from 103% to 78.9% in 2015 while Revenue jumped on 17.2%

15-05-2015 • About Housing Development & Infrastructure ($HDIL) • By InTwits

Housing Development & Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Housing Development & Infrastructure has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 1.6%.
  • CAPEX is quite volatile: 0 in FY2015, 235 in FY2014, 26.7 in FY2013, 135 in FY2012, 1,222 in FY2011
  • The company has potentially unprofitable business model: ROIC is at 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Housing Development & Infrastructure ($HDIL) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue18,46719,92510,1288,72310,22517.2%
EBITDA15,46015,1014,1128,9438,063-9.8%
Net Income8,2188,0987331,7762,18723.1%
Balance Sheet
Cash2,29736710323127519.3%
Short Term Debt26,82328,49627,68623,84321,739-8.8%
Long Term Debt16,38012,46812,50311,27110,617-5.8%
Cash flow
Capex1,222135272350-100.0%
Ratios
Revenue growth59.1%7.9%-49.2%-13.9%17.2%
EBITDA growth28.3%-2.3%-72.8%117.5%-9.8%
EBITDA Margin83.7%75.8%40.6%102.5%78.9%-23.7%
Net Income Margin44.5%40.6%7.2%20.4%21.4%1.0%
CAPEX, % of revenue6.6%0.7%0.3%2.7%0.0%-2.7%
ROIC11.3%9.8%2.2%5.5%5.4%-0.1%
ROE9.9%8.2%0.7%1.7%2.0%0.4%
Net Debt/EBITDA2.6x2.7x9.7x3.9x4.0x0.1x

Revenue and profitability


The company's Revenue surged on 17.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.

Net Income marign increased slightly on 1.0 pp from 20.4% to 21.4% in FY2015.

Return on investment


The company operates at low ROIC (5.44%) and ROE (2.05%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.

Leverage (Debt)


Debt level is 4.0x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 3.9x to 4.0x in FY2015. Debt decreased on 7.9% in FY2015 while cash surged on 19.3% in FY2015.

Valuation


Housing Development & Infrastructure's trades at EV/EBITDA 9.6x and P/E 20.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 9.6x with the industry average at 4.7x.

Management team


Housing Development & Infrastructure's CEO is Sarang Wadhawan. Sarang Wadhawan has 12 years tenure at the company.

Appendix 1: Peers in Realty


Below you can find Housing Development & Infrastructure 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%-1.6%5.6%-1.8%14.1%
Housing Development & Infrastructure ($HDIL)7.9%-49.2%-13.9%17.2%


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
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%
Lancor Holdings ($LANCORHOL)28.4%31.1%35.1%38.6%35.2%
 
Median (33 companies)23.3%19.4%13.4%19.8%25.3%
Housing Development & Infrastructure ($HDIL)83.7%75.8%40.6%102.5%78.9%


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)5.3%4.9%2.6%3.7%2.1%
Housing Development & Infrastructure ($HDIL)6.6%0.7%0.3%2.7%0.0%


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%9.7%
 
Median (50 companies)9.2%5.7%5.1%5.7%9.7%
Housing Development & Infrastructure ($HDIL)11.3%9.8%2.2%5.5%5.4%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Unitech ($UNITECH)5.5x13.1x14.4x28.0x
Vascon Engineers ($VASCONEQ)2.8x8.4x11.2x25.9x
Peninsula Land ($PENINLAND)2.2x5.5x24.0x
Parsvnath Developers ($PARSVNATH)4.5x5.1x4.7x14.6x
D B Realty ($DBREALTY)1.1x13.2x135.4x14.0x
 
Median (39 companies)4.2x5.3x4.8x5.0x2.9x
Housing Development & Infrastructure ($HDIL)2.6x2.7x9.7x3.9x4.0x


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