Hotel Leelaventure Net Debt / EBITDA surged on 13.2x from 33.5x to 46.7x in 2015 while Revenue dropped on 11.4%
27-05-2015 • About Hotel Leelaventure (
$HOTELEELA) • By InTwits
Hotel Leelaventure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hotel Leelaventure is a company in decline: FY2015 revenue growth was -11.4%, 5 years revenue CAGR was -3.7%
- EBITDA Margin is quite volatile: 16.9% in FY2015, 20.3% in FY2014, 17.9% in FY2013, 11.6% in FY2012, 33.8% in FY2011
- Hotel Leelaventure has high CAPEX intensity: 5 year average CAPEX/Revenue was 73.7%. At the same time it's a lot of higher than industry average of 11.5%.
- CAPEX is quite volatile: 0 in FY2015, 751 in FY2014, 2,773 in FY2013, 7,198 in FY2012, 8,789 in FY2011
- The company has unprofitable business model: ROIC is at -2.3%
- It operates with high leverage: Net Debt/EBITDA is 46.7x while industry average is 5.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hotel Leelaventure ($HOTELEELA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,640 | 5,718 | 6,447 | 7,184 | 6,365 | -11.4% |
| EBITDA | 1,570 | 666 | 1,152 | 1,460 | 1,073 | -26.5% |
| Net Income | 378 | 186 | -4,335 | -4,415 | -4,158 | |
Balance Sheet
|
|---|
| Cash | 499 | 125 | 268 | 188 | 227 | 21.1% |
| Short Term Debt | 3,170 | 6,199 | 19,450 | 23,262 | 389 | -98.3% |
| Long Term Debt | 34,862 | 35,557 | 27,143 | 25,789 | 49,949 | 93.7% |
Cash flow
|
|---|
| Capex | 8,789 | 7,198 | 2,773 | 751 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -39.6% | 23.2% | 12.7% | 11.4% | -11.4% | |
| EBITDA growth | 20.4% | -57.6% | 72.9% | 26.8% | -26.5% | |
| EBITDA Margin | 33.8% | 11.6% | 17.9% | 20.3% | 16.9% | -3.5% |
| Net Income Margin | 8.2% | 3.3% | -67.2% | -61.5% | -65.3% | -3.9% |
| CAPEX, % of revenue | 189.4% | 125.9% | 43.0% | 10.5% | 0.0% | -10.5% |
| ROIC | 1.6% | -0.6% | -0.4% | -0.6% | -2.3% | -1.8% |
| ROE | 1.8% | 1.0% | -30.8% | -42.2% | -64.6% | -22.4% |
| Net Debt/EBITDA | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x | 13.2x |
Revenue and profitability
The company's Revenue dropped on 11.4% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 20.3% to 16.9% in FY2015.
Net Income marign decreased on 3.9 pp from -61.5% to -65.3% in FY2015.
Return on investment
The company operates at negative ROIC (-2.35%) and ROE (-64.59%). ROIC decreased slightly on 1.8 pp from -0.58% to -2.3% in FY2015. ROE dropped on 22.4 pp from -42.2% to -64.6% in FY2015.
Leverage (Debt)
Debt level is 46.7x Net Debt / EBITDA and 46.9x Debt / EBITDA. Net Debt / EBITDA jumped on 13.2x from 33.5x to 46.7x in FY2015. Debt increased on 2.6% in FY2015 while cash jumped on 21.1% in FY2015.
Appendix 1: Peers in Hotels
Below you can find Hotel Leelaventure benchmarking vs. other companies in Hotels 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 |
|---|
| The Byke Hospitality ($THEBYKE) | | 47.6% | 105.7% | 54.3% | 16.5% |
| Sayaji Hotels ($SAYAJIHOTL) | 26.3% | 18.2% | 24.5% | 29.4% | |
| Sterling Holiday Resorts (India) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
| Asian Hotels (East) ($AHLEAST) | -62.1% | 3.4% | 76.9% | 18.9% | |
| Mahindra Holidays & Resorts India ($MHRIL) | | 15.5% | 27.8% | 10.5% | -8.0% |
| |
|---|
| Median (15 companies) | -22.5% | 14.9% | 8.6% | 5.5% | 9.8% |
|---|
| Hotel Leelaventure ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 36.6% | 10.8% | 22.9% | 26.9% | |
| Kamat Hotels (India) ($KAMATHOTEL) | 31.9% | 29.7% | 22.1% | 26.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
| Country Club (India) ($COUNCLB) | 31.8% | 34.2% | 32.3% | 24.2% | |
| Royale Manor Hotels & Industries ($RAYALEMA) | 24.1% | 36.3% | 23.5% | 23.2% | |
| |
|---|
| Median (14 companies) | 25.3% | 21.9% | 22.9% | 20.7% | 18.6% |
|---|
| Hotel Leelaventure ($HOTELEELA) | 33.8% | 11.6% | 17.9% | 20.3% | 16.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Country Club (India) ($COUNCLB) | 53.8% | 58.7% | 36.6% | 49.6% | |
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | |
| Sterling Holiday Resorts (India) ($STERLINH) | 12.2% | 48.8% | 50.4% | 18.7% | |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.4% | 26.0% | 26.5% | 15.4% | 18.0% |
| Oriental Hotels ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 20.4% | 26.0% | 17.6% | 9.7% | 4.9% |
|---|
| Hotel Leelaventure ($HOTELEELA) | 189.4% | 125.9% | 43.0% | 10.5% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.1% | 13.4% | 22.2% | 16.3% | 6.3% |
| Sayaji Hotels ($SAYAJIHOTL) | 10.2% | 13.1% | 9.4% | 14.2% | |
| Fomento Resorts & Hotels ($FOMEHOT) | 13.6% | 10.6% | 13.8% | 11.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| |
|---|
| Median (29 companies) | 7.9% | 5.9% | 5.0% | 4.1% | 5.0% |
|---|
| Hotel Leelaventure ($HOTELEELA) | 1.6% | -0.6% | -0.4% | -0.6% | -2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 9.1x | 28.4x | 11.0x | 15.4x | |
| Kamat Hotels (India) ($KAMATHOTEL) | 15.0x | 13.6x | 17.8x | 15.1x | |
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| Country Club (India) ($COUNCLB) | 1.4x | 2.0x | 1.8x | 3.2x | |
| |
|---|
| Median (19 companies) | 1.8x | 1.8x | 2.0x | 0.9x | 0.3x |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x |
