Man Infraconstruction Net Income jumped on 64.0% in 2015 while Revenue dropped on 33.1%
27-05-2015 • About Man Infraconstruction (
$MANINFRA) • By InTwits
Man Infraconstruction reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Infraconstruction is a company in decline: FY2015 revenue growth was -33.1%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is quite volatile: 11.0% in FY2015, 5.9% in FY2014, 9.2% in FY2013, 20.0% in FY2012, 16.2% in FY2011
- Man Infraconstruction has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.9%. At the same time it's in pair with industry average of 11.7%.
- CAPEX is quite volatile: 495 in FY2015, 993 in FY2014, 71.1 in FY2013, 382 in FY2012, 694 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Man Infraconstruction ($MANINFRA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,046 | 4,890 | 4,471 | 3,973 | 2,659 | -33.1% |
| EBITDA | 977 | 979 | 412 | 235 | 292 | 24.4% |
| Net Income | 626 | 544 | 481 | 289 | 474 | 64.0% |
Balance Sheet
|
|---|
| Cash | 123 | 352 | 192 | 82 | 1,355 | 1,543.4% |
| Short Term Debt | 148 | 372 | 256 | 162 | 477 | 194.7% |
| Long Term Debt | 0 | 0 | 0 | 660 | 1,103 | 67.1% |
Cash flow
|
|---|
| Capex | 694 | 382 | 71 | 993 | 495 | -50.2% |
Ratios
|
|---|
| Revenue growth | 91.5% | -19.1% | -8.6% | -11.1% | -33.1% | |
| EBITDA growth | -36.0% | 0.2% | -57.9% | -43.0% | 24.4% | |
| EBITDA Margin | 16.2% | 20.0% | 9.2% | 5.9% | 11.0% | 5.1% |
| Net Income Margin | 10.4% | 11.1% | 10.8% | 7.3% | 17.8% | 10.6% |
| CAPEX, % of revenue | 11.5% | 7.8% | 1.6% | 25.0% | 18.6% | -6.4% |
| ROIC | 15.0% | 13.3% | 3.9% | 1.7% | 2.3% | 0.6% |
| ROE | 12.8% | 10.4% | 8.6% | 4.9% | 7.7% | 2.8% |
| Net Debt/EBITDA | 0.0x | 0.0x | 0.2x | 3.1x | 0.8x | -2.4x |
Revenue and profitability
Man Infraconstruction's Revenue dropped on 33.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.1 pp from 5.9% to 11.0% in FY2015.
Net Income marign jumped on 10.6 pp from 7.3% to 17.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 18.6%. CAPEX/Revenue surged on 10.8 pp from 7.8% in FY2012 to 18.6% in FY2015. It's average CAPEX/Revenue for the last three years was 15.1%.Battling declining revenue Man Infraconstruction made large investments to CAPEX (169% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (2.29%) and ROE (7.67%). ROIC increased slightly on 0.58 pp from 1.7% to 2.3% in FY2015. ROE increased on 2.8 pp from 4.9% to 7.7% in FY2015.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA dropped on 2.4x from 3.1x to 0.8x in FY2015. Debt surged on 92.2% in FY2015 while cash jumped on 1,543% in FY2015.
Valuation
Man Infraconstruction's trades at EV/EBITDA 43.6x and P/E 26.4x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Construction & Engineering
Below you can find Man Infraconstruction 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 ($MBLINFRA) | | 26.3% | 7.1% | 30.3% | 11.1% |
| Atlanta ($ATLANTA) | | -47.6% | 115.1% | 28.1% | 50.2% |
| Arss Infrastructure Projects ($ARSSINFRA) | | -5.3% | -34.8% | 17.8% | -27.8% |
| |
|---|
| Median (31 companies) | -15.4% | 11.4% | 6.9% | 7.1% | 10.5% |
|---|
| Man Infraconstruction ($MANINFRA) | | -19.1% | -8.6% | -11.1% | -33.1% |
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% | 21.4% |
| 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 ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | 31.3% |
| |
|---|
| Median (29 companies) | 12.0% | 11.9% | 11.3% | 10.7% | 12.0% |
|---|
| Man Infraconstruction ($MANINFRA) | 16.2% | 20.0% | 9.2% | 5.9% | 11.0% |
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 ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | |
| Jmc Projects (India) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 6.8% | 0.0% | 11.2% | 14.1% | |
| |
|---|
| Median (23 companies) | 5.5% | 7.3% | 8.6% | 4.0% | 2.6% |
|---|
| Man Infraconstruction ($MANINFRA) | 11.5% | 7.8% | 1.6% | 25.0% | 18.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipper ($SKIPPER) | 10.6% | 10.4% | 13.5% | 14.7% | 27.4% |
| Mbl Infrastructures ($MBLINFRA) | 24.3% | 21.3% | 13.4% | 14.0% | 13.6% |
| Voltas ($VOLTAS) | 32.9% | 19.6% | 11.7% | 11.8% | 19.3% |
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | |
| Reliance Industrial Infrastructure ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.5% | 8.6% | 7.5% | 6.3% | 8.8% |
|---|
| Man Infraconstruction ($MANINFRA) | 15.0% | 13.3% | 3.9% | 1.7% | 2.3% |
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 ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | 9.3x |
| |
|---|
| Median (32 companies) | 3.7x | 4.7x | 5.7x | 6.6x | 3.1x |
|---|
| Man Infraconstruction ($MANINFRA) | 0.0x | 0.0x | 0.2x | 3.1x | 0.8x |
