Orient Green Power Company CAPEX dropped on 79.2% in 2015 and Revenue dropped on 16.9%
27-05-2015 • About Orient Green Power Company (
$GREENPOWER) • By InTwits
Orient Green Power Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Orient Green Power Company is a company in decline: FY2015 revenue growth was -16.9%, 5 years revenue CAGR was -3.3%
- EBITDA Margin is expanding: 82.8% in FY2015 vs. 57.8% in FY2014 vs. 42.7% in FY2011
- EBITDA Margin is quite volatile: 82.8% in FY2015, 57.8% in FY2014, 53.3% in FY2013, 24.4% in FY2012, 42.7% in FY2011
- Orient Green Power Company has high CAPEX intensity: 5 year average CAPEX/Revenue was 205.9%. At the same time it's a lot of higher than industry average of 48.4%.
- CAPEX is quite volatile: 576 in FY2015, 2,769 in FY2014, 6,033 in FY2013, 10,581 in FY2012, 7,116 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 8.7x while industry average is 8.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Orient Green Power Company ($GREENPOWER) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,088 | 2,504 | 3,548 | 3,595 | 2,989 | -16.9% |
| EBITDA | 891 | 612 | 1,893 | 2,078 | 2,475 | 19.1% |
| Net Income | 108 | -693 | -699 | -1,876 | -2,330 | |
Balance Sheet
|
|---|
| Cash | 594 | 303 | 483 | 255 | 87 | -65.7% |
| Short Term Debt | 1,331 | 3,445 | 3,560 | 3,449 | 2,890 | -16.2% |
| Long Term Debt | 6,767 | 10,012 | 15,872 | 18,818 | 18,692 | -0.7% |
Cash flow
|
|---|
| Capex | 7,116 | 10,581 | 6,033 | 2,769 | 576 | -79.2% |
Ratios
|
|---|
| Revenue growth | -41.1% | 20.0% | 41.7% | 1.3% | -16.9% | |
| EBITDA growth | -19,133.1% | -31.3% | 209.3% | 9.8% | 19.1% | |
| EBITDA Margin | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% | 25.0% |
| Net Income Margin | 5.2% | -27.7% | -19.7% | -52.2% | -77.9% | -25.8% |
| CAPEX, % of revenue | 340.9% | 422.5% | 170.0% | 77.0% | 19.3% | -57.7% |
| ROIC | 3.2% | -0.2% | 2.7% | 2.0% | 2.2% | 0.2% |
| ROE | 1.3% | -5.7% | -5.8% | -16.3% | -24.8% | -8.4% |
| Net Debt/EBITDA | 8.4x | 21.5x | 10.0x | 10.6x | 8.7x | -1.9x |
Revenue and profitability
Orient Green Power Company's Revenue dropped on 16.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 25.0 pp from 57.8% to 82.8% in FY2015.
Net Income marign dropped on 25.8 pp from -52.2% to -77.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 19.3%. Orient Green Power Company showed big decline in CAPEX/Revenue of 403 pp from 422% in FY2012 to 19.3% in FY2015. It's average CAPEX/Revenue for the last three years was 88.8%.
Return on investment
The company operates at low but positive ROIC (2.16%) and negative ROE (-24.75%). ROIC showed almost no change in FY2015. ROE decreased on 8.4 pp from -16.3% to -24.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.7x and Debt / EBITDA is 8.7x. Net Debt / EBITDA dropped on 1.9x from 10.6x to 8.7x in FY2015. Debt decreased on 3.1% in FY2015 while cash dropped on 65.7% in FY2015.
Appendix 1: Peers in Electric Utilities
Below we provide Orient Green Power Company benchmarking against other companies in Electric Utilities 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 |
|---|
| Adani Power ($ADANIPOWER) | | 91.5% | 65.7% | 128.0% | 21.7% |
| Nava Bharat Ventures ($NBVENTURES) | -50.8% | -10.4% | 15.3% | 51.6% | |
| Ptc India ($PTC) | -53.9% | -12.1% | 14.2% | 31.5% | |
| Bf Utilities ($BFUTILITIE) | -79.1% | 41.4% | 9.2% | 20.6% | |
| Power Grid Corporation Of India ($POWERGRID) | -63.7% | 19.7% | 27.2% | 18.9% | |
| |
|---|
| Median (16 companies) | -53.9% | 32.0% | 14.2% | 8.8% | 6.8% |
|---|
| Orient Green Power Company ($GREENPOWER) | | 20.0% | 41.7% | 1.3% | -16.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 85.4% | 83.7% | 85.6% | 84.9% | |
| Bf Utilities ($BFUTILITIE) | 36.4% | 43.9% | 55.1% | 61.2% | |
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | |
| Nhpc ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | |
| Gvk Power & Infrastructure ($GVKPIL) | 27.4% | 28.3% | 27.4% | 37.2% | 38.2% |
| |
|---|
| Median (17 companies) | 27.9% | 28.3% | 24.7% | 25.0% | 19.6% |
|---|
| Orient Green Power Company ($GREENPOWER) | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | |
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | |
| Gvk Power & Infrastructure ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| Nava Bharat Ventures ($NBVENTURES) | 39.1% | 69.0% | 30.5% | 70.6% | |
| Ksk Energy Ventures ($KSK) | 132.8% | 161.9% | 80.3% | 57.0% | |
| |
|---|
| Median (15 companies) | 67.4% | 67.4% | 39.8% | 30.3% | 13.3% |
|---|
| Orient Green Power Company ($GREENPOWER) | 340.9% | 422.5% | 170.0% | 77.0% | 19.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom T&D India ($ALSTOMT&D) | 11.2% | 0.0% | 15.7% | 14.6% | 16.1% |
| Ptc India ($PTC) | 8.1% | 11.2% | 10.4% | 13.6% | |
| Nava Bharat Ventures ($NBVENTURES) | 11.7% | 5.3% | 6.3% | 9.2% | |
| Ntpc ($NTPC) | 8.7% | 9.0% | 9.6% | 9.1% | |
| Tata Power Co ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| |
|---|
| Median (19 companies) | 4.5% | 5.6% | 5.8% | 5.5% | 6.8% |
|---|
| Orient Green Power Company ($GREENPOWER) | 3.2% | -0.2% | 2.7% | 2.0% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | |
| Gvk Power & Infrastructure ($GVKPIL) | 9.6x | 19.1x | 23.9x | 20.1x | 20.2x |
| Lanco Infratech ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | |
| Gmr Infrastructure ($GMRINFRA) | 7.9x | 19.5x | 15.1x | 16.7x | |
| |
|---|
| Median (19 companies) | 6.1x | 8.6x | 6.6x | 6.2x | 7.2x |
|---|
| Orient Green Power Company ($GREENPOWER) | 8.4x | 21.5x | 10.0x | 10.6x | 8.7x |
