Il&Fs Transportation Networks Debt jumped on 25.0% in 2015 and EBITDA jumped on 13.1%
15-05-2015 • About Il&Fs Transportation Networks (
$IL&FSTRANS) • By InTwits
Il&Fs Transportation Networks reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 33.1% in FY2015 vs. 28.9% in FY2014 vs. 29.2% in FY2011
- Il&Fs Transportation Networks has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.6%. At the same time it's in pair with industry average of 38.6%.
- CAPEX is quite volatile: 2,272 in FY2015, 3,747 in FY2014, 3,885 in FY2013, 2,452 in FY2012, 1,452 in FY2011
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with high leverage: Net Debt/EBITDA is 10.6x while industry average is 5.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Il&Fs Transportation Networks ($IL&FSTRANS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 40,482 | 56,056 | 66,448 | 65,870 | 65,010 | -1.3% |
| SG&A | | | | | 5,219 | |
| EBITDA | 11,809 | 14,878 | 18,533 | 19,031 | 21,521 | 13.1% |
| Net Income | 4,329 | 4,970 | 5,202 | 4,630 | 4,436 | -4.2% |
Balance Sheet
|
|---|
| Cash | 4,360 | 1,388 | 3,578 | 6,112 | 6,892 | 12.8% |
| Short Term Debt | 10,235 | 32,522 | 21,742 | 25,498 | 49,218 | 93.0% |
| Long Term Debt | 35,990 | 69,738 | 121,849 | 162,668 | 185,917 | 14.3% |
Cash flow
|
|---|
| Capex | 14,149 | 19,354 | 30,621 | 31,979 | 28,526 | -10.8% |
Ratios
|
|---|
| Revenue growth | -49.9% | 38.5% | 18.5% | -0.9% | -1.3% | |
| EBITDA growth | 59.6% | 26.0% | 24.6% | 2.7% | 13.1% | |
| EBITDA Margin | 29.2% | 26.5% | 27.9% | 28.9% | 33.1% | 4.2% |
| Net Income Margin | 10.7% | 8.9% | 7.8% | 7.0% | 6.8% | -0.2% |
| SG&A, % of revenue | | | | | 8.0% | 8.0% |
| CAPEX, % of revenue | 35.0% | 34.5% | 46.1% | 48.5% | 43.9% | -4.7% |
| ROIC | 17.9% | 13.6% | 10.9% | 8.1% | 7.3% | -0.7% |
| ROE | 21.9% | 19.8% | 16.2% | 10.2% | 7.0% | -3.2% |
| Net Debt/EBITDA | 3.5x | 6.8x | 7.6x | 9.6x | 10.6x | 1.0x |
Revenue and profitability
The company's Revenue decreased slightly on 1.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 28.9% to 33.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Il&Fs Transportation Networks's CAPEX/Revenue was 43.9% in FY2015. The company showed CAPEX/Revenue growth of 9.4 pp from 34.5% in FY2012 to 43.9% in FY2015. Average CAPEX/Revenue for the last three years was 46.2%.Il&Fs Transportation Networks has spent a lot to CAPEX (133% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (7.34%) and ROE (6.97%). ROIC decreased slightly on 0.73 pp from 8.1% to 7.3% in FY2015. ROE decreased on 3.2 pp from 10.2% to 7.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.6x and Debt / EBITDA is 10.9x. Net Debt / EBITDA jumped on 1.0x from 9.6x to 10.6x in FY2015. Debt jumped on 25.0% in FY2015 while cash jumped on 12.8% in FY2015.
Valuation
Il&Fs Transportation Networks's trades at EV/EBITDA 12.5x and P/E 9.0x while industy averages are 10.5x and 26.1x.
Management team
Il&Fs Transportation Networks's CEO is Mittal S C. Mittal S C has 8 years tenure at the company.
Appendix 1: Peers in Roads & Highways
Below we provide Il&Fs Transportation Networks benchmarking against other companies in Roads & Highways industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | | 10.6% | 13.3% | 11.2% | 3.0% |
| Irb Infrastructure Developers ($IRB) | -49.7% | 28.5% | 17.7% | 1.2% | |
| |
|---|
| Median (2 companies) | -49.7% | 19.6% | 15.5% | 6.2% | 3.0% |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | | 38.5% | 18.5% | -0.9% | -1.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 71.6% | 71.7% | 68.3% | 73.0% | 70.4% |
| Irb Infrastructure Developers ($IRB) | 45.6% | 44.6% | 44.4% | 47.3% | |
| |
|---|
| Median (2 companies) | 58.6% | 58.1% | 56.3% | 60.2% | 70.4% |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 29.2% | 26.5% | 27.9% | 28.9% | 33.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Irb Infrastructure Developers ($IRB) | 72.0% | 77.2% | 67.2% | 71.1% | |
| Noida Toll Bridge Company ($NOIDATOLL) | 1.0% | 0.3% | 1.0% | 0.2% | 0.7% |
| |
|---|
| Median (2 companies) | 36.5% | 38.8% | 34.1% | 35.7% | 0.7% |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 35.0% | 34.5% | 46.1% | 48.5% | 43.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 9.6% | 10.9% | 12.8% | 15.0% | 14.4% |
| Irb Infrastructure Developers ($IRB) | 14.5% | 12.8% | 10.7% | 9.6% | |
| |
|---|
| Median (2 companies) | 12.0% | 11.8% | 11.8% | 12.3% | 14.4% |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 17.9% | 13.6% | 10.9% | 8.1% | 7.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Irb Infrastructure Developers ($IRB) | 3.1x | 4.8x | 5.2x | 6.0x | |
| Noida Toll Bridge Company ($NOIDATOLL) | 2.2x | 1.1x | 0.3x | 0.1x | 0.2x |
| |
|---|
| Median (2 companies) | 2.7x | 3.0x | 2.8x | 3.1x | 0.2x |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 3.5x | 6.8x | 7.6x | 9.6x | 10.6x |
