Tgb Banquets And Hotels EBITDA dropped on 22.9% in 2015 and Revenue dropped on 10.7%
27-05-2015 • About Tgb Banquets And Hotels (
$TGBHOTELS) • By InTwits
Tgb Banquets And Hotels reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tgb Banquets And Hotels is a company in decline: FY2015 revenue growth was -10.7%, 5 years revenue CAGR was -2.5%
- Tgb Banquets And Hotels has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.1%. At the same time it's in pair with industry average of 11.5%.
- CAPEX is quite volatile: 44.6 in FY2015, 96.4 in FY2014, 142 in FY2013, 140 in FY2012, 468 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tgb Banquets And Hotels ($TGBHOTELS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,222 | 1,525 | 1,640 | 1,564 | 1,397 | -10.7% |
| EBITDA | 244 | 323 | 387 | 392 | 302 | -22.9% |
| Net Income | 86 | 3 | 30 | 18 | -112 | -705.8% |
Balance Sheet
|
|---|
| Cash | 22 | 86 | 152 | 260 | 51 | -80.6% |
| Short Term Debt | 91 | 336 | 333 | 286 | 368 | 28.7% |
| Long Term Debt | 1,060 | 959 | 978 | 1,043 | 901 | -13.6% |
Cash flow
|
|---|
| Capex | 468 | 140 | 142 | 96 | 45 | -53.7% |
Ratios
|
|---|
| Revenue growth | -22.8% | 24.9% | 7.5% | -4.6% | -10.7% | |
| EBITDA growth | 38.5% | 32.3% | 19.7% | 1.1% | -22.9% | |
| EBITDA Margin | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% | -3.4% |
| Net Income Margin | 7.0% | 0.2% | 1.8% | 1.2% | -8.0% | -9.2% |
| CAPEX, % of revenue | 38.3% | 9.2% | 8.7% | 6.2% | 3.2% | -3.0% |
| ROIC | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% | -5.7% |
| ROE | 6.3% | 0.2% | 2.1% | 1.3% | -8.2% | -9.5% |
| Net Debt/EBITDA | 4.6x | 3.7x | 3.0x | 2.7x | 4.0x | 1.3x |
Revenue and profitability
The company's Revenue dropped on 10.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 25.0% to 21.6% in FY2015.
Net Income marign decreased on 9.2 pp from 1.2% to -8.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.2% in FY2015. Tgb Banquets And Hotels showed decline in CAPEX/Revenue of 6.0 pp from 9.2% in FY2012 to 3.2% in FY2015. Average CAPEX/Revenue for the last three years was 6.0%.
Return on investment
The company operates at low but positive ROIC (3.19%) and negative ROE (-8.22%). ROIC decreased on 5.7 pp from 8.9% to 3.2% in FY2015. ROE decreased on 9.5 pp from 1.3% to -8.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.2x. Net Debt / EBITDA jumped on 1.3x from 2.7x to 4.0x in FY2015. Debt decreased on 4.5% in FY2015 while cash dropped on 80.6% in FY2015.
Appendix 1: Peers in Hotels
Below you can find Tgb Banquets And Hotels 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% | |
| Hotel Leelaventure ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
| |
|---|
| Median (15 companies) | -22.5% | 14.9% | 12.7% | 5.9% | 9.8% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | | 24.9% | 7.5% | -4.6% | -10.7% |
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% | |
| 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% | |
| Asian Hotels (East) ($AHLEAST) | 30.8% | 31.5% | 23.7% | 21.8% | |
| |
|---|
| Median (14 companies) | 25.3% | 21.9% | 22.6% | 20.0% | 16.8% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 20.4% | 30.8% | 22.1% | 11.4% | 4.9% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 38.3% | 9.2% | 8.7% | 6.2% | 3.2% |
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% | |
| Eih ($EIHOTEL) | 4.5% | 5.5% | 4.5% | 5.8% | |
| |
|---|
| Median (29 companies) | 7.9% | 5.4% | 4.7% | 2.8% | 5.0% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x |
| Asian Hotels (North) ($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 ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| |
|---|
| Median (19 companies) | 1.8x | 1.8x | 2.0x | 0.9x | 0.3x |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 4.6x | 3.7x | 3.0x | 2.7x | 4.0x |
