Brigade Enterprises CAPEX jumped on 57.5% in 2015 and Revenue surged on 44.6%
20-05-2015 • About Brigade Enterprises (
$BRIGADE) • By InTwits
Brigade Enterprises reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brigade Enterprises has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.9%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: 2,428 in FY2015, 1,541 in FY2014, 877 in FY2013, 2,804 in FY2012, 2,055 in FY2011
- The company has business model with average profitability: ROIC is at 10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brigade Enterprises ($BRIGADE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,820 | 6,130 | 8,227 | 9,065 | 13,108 | 44.6% |
| EBITDA | 1,697 | 1,466 | 2,128 | 2,988 | 3,837 | 28.4% |
| Net Income | 1,205 | 569 | 612 | 920 | 952 | 3.5% |
Balance Sheet
|
|---|
| Cash | 437 | 87 | 287 | 382 | 539 | 41.2% |
| Short Term Debt | 2,164 | 1,676 | 2,121 | 4,888 | 7,707 | 57.7% |
| Long Term Debt | 7,040 | 6,835 | 8,427 | 5,327 | 8,926 | 67.6% |
Cash flow
|
|---|
| Capex | 2,055 | 2,804 | 877 | 1,541 | 2,428 | 57.5% |
Ratios
|
|---|
| Revenue growth | -68.8% | 27.2% | 34.2% | 10.2% | 44.6% | |
| EBITDA growth | 307.1% | -13.6% | 45.2% | 40.4% | 28.4% | |
| EBITDA Margin | 35.2% | 23.9% | 25.9% | 33.0% | 29.3% | -3.7% |
| Net Income Margin | 25.0% | 9.3% | 7.4% | 10.1% | 7.3% | -2.9% |
| CAPEX, % of revenue | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% | 1.5% |
| ROIC | 7.3% | 4.5% | 6.2% | 9.3% | 10.5% | 1.2% |
| ROE | 11.2% | 5.0% | 5.1% | 7.4% | 7.2% | -0.2% |
| Net Debt/EBITDA | 5.2x | 5.7x | 4.8x | 3.3x | 4.2x | 0.9x |
Revenue and profitability
The company's Revenue surged on 44.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 33.0% to 29.3% in FY2015.
Net Income marign decreased on 2.9 pp from 10.1% to 7.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Brigade Enterprises's CAPEX/Revenue was 18.5% in FY2015. CAPEX/Revenue dropped on 27.2 pp from 45.7% in FY2012 to 18.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 15.4%.Brigade Enterprises invested a big chunk of EBITDA (63.3%) to CAPEX to secure its growth.
Return on investment
The company operates at low ROIC (10.51%) and ROE (7.22%). ROIC increased slightly on 1.2 pp from 9.3% to 10.5% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 4.3x. Net Debt / EBITDA jumped on 0.9x from 3.3x to 4.2x in FY2015. Debt jumped on 62.8% in FY2015 while cash surged on 41.2% in FY2015.
Valuation
Brigade Enterprises's trades at EV/EBITDA 8.8x and P/E 18.7x while industy averages are 10.5x and 26.1x. Brigade Enterprises's EV/(EBITDA-CAPEX) is 24.1x with the industry average at 4.7x.
Appendix 1: Peers in Realty
Below we provide Brigade Enterprises benchmarking against other companies in Realty 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 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 ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -13.9% | -1.6% | 3.4% | -4.5% | 13.2% |
|---|
| Brigade Enterprises ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
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% | 78.9% |
| 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) | 23.3% | 19.4% | 13.4% | 19.8% | 25.3% |
|---|
| Brigade Enterprises ($BRIGADE) | 35.2% | 23.9% | 25.9% | 33.0% | 29.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | |
| Prestige Estates Projects ($PRESTIGE) | 23.3% | 37.7% | 30.2% | 18.8% | |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | |
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | |
| D B Realty ($DBREALTY) | 4.2% | 15.1% | 0.9% | 7.2% | |
| |
|---|
| Median (29 companies) | 5.3% | 4.7% | 2.3% | 3.5% | 2.1% |
|---|
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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) | 9.4% | 5.9% | 4.6% | 5.6% | 7.4% |
|---|
| Brigade Enterprises ($BRIGADE) | 7.3% | 4.5% | 6.2% | 9.3% | 10.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($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 | |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 5.1x | 5.0x | 3.5x |
|---|
| Brigade Enterprises ($BRIGADE) | 5.2x | 5.7x | 4.8x | 3.3x | 4.2x |
