The Byke Hospitality EBITDA jumped on 30.3% in 2015 and Revenue jumped on 16.5%
27-05-2015 • About The Byke Hospitality (
$THEBYKE) • By InTwits
The Byke Hospitality reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 20.5% in FY2015 vs. 18.3% in FY2014 vs. 11.7% in FY2011
- The Byke Hospitality has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.2%. At the same time it's a lot of higher than industry average of 11.5%.
- CAPEX is quite volatile: 88.2 in FY2015, 89.8 in FY2014, 158 in FY2013, 164 in FY2012, 254 in FY2011
- The company has highly profitable business model: ROIC is at 24.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
The Byke Hospitality ($THEBYKE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 332 | 491 | 1,009 | 1,557 | 1,814 | 16.5% |
| EBITDA | 39 | 51 | 175 | 286 | 372 | 30.3% |
| Net Income | 22 | 24 | 78 | 159 | 200 | 26.1% |
Balance Sheet
|
|---|
| Cash | 4 | 20 | 10 | 19 | 22 | 15.5% |
| Short Term Debt | 2 | 62 | 115 | 85 | 87 | 1.6% |
| Long Term Debt | 0 | 96 | 83 | 60 | 38 | -37.7% |
Cash flow
|
|---|
| Capex | 254 | 164 | 158 | 90 | 88 | -1.7% |
Ratios
|
|---|
| Revenue growth | -83.8% | 47.6% | 105.7% | 54.3% | 16.5% | |
| EBITDA growth | 67.0% | 32.2% | 241.4% | 62.8% | 30.3% | |
| EBITDA Margin | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% | 2.2% |
| Net Income Margin | 6.7% | 4.9% | 7.7% | 10.2% | 11.0% | 0.8% |
| CAPEX, % of revenue | 76.4% | 33.3% | 15.7% | 5.8% | 4.9% | -0.9% |
| ROIC | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% | 1.5% |
| ROE | 4.6% | 3.7% | 11.1% | 20.2% | 21.7% | 1.5% |
| Net Debt/EBITDA | -0.1x | 2.7x | 1.1x | 0.4x | 0.3x | -0.2x |
Revenue and profitability
The company's Revenue jumped on 16.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 3.8% to 5.6% in FY2015.
Net Income marign increased slightly on 0.84 pp from 10.2% to 11.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.9% in FY2015. The Byke Hospitality's CAPEX/Revenue dropped on 28.5 pp from 33.3% in FY2012 to 4.9% in FY2015. For the last three years the average CAPEX/Revenue was 8.8%.
Return on investment
The company operates at high and attractive ROIC (24.10%) and ROE (21.67%). ROIC increased slightly on 1.5 pp from 22.6% to 24.1% in FY2015. ROE increased slightly on 1.5 pp from 20.2% to 21.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.2x from 0.4x to 0.3x in FY2015. Debt dropped on 14.7% in FY2015 while cash jumped on 15.5% in FY2015.
Valuation
The Byke Hospitality's trades at EV/EBITDA 18.1x and P/E 33.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 23.8x with the industry average at 4.7x.
Appendix 1: Peers in Hotels
Below you can find The Byke Hospitality 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 |
|---|
| 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% |
| Mahindra Holidays & Resorts India ($MHRIL) | | 15.5% | 27.8% | 10.5% | -8.0% |
| |
|---|
| Median (15 companies) | -22.5% | 14.9% | 8.6% | 5.5% | -2.5% |
|---|
| The Byke Hospitality ($THEBYKE) | | 47.6% | 105.7% | 54.3% | 16.5% |
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 ($RAYALEMA) | 24.1% | 36.3% | 23.5% | 23.2% | |
| |
|---|
| Median (14 companies) | 25.3% | 21.9% | 22.9% | 21.0% | 16.8% |
|---|
| The Byke Hospitality ($THEBYKE) | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% |
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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 20.4% | 26.0% | 22.1% | 11.4% | 4.8% |
|---|
| The Byke Hospitality ($THEBYKE) | 76.4% | 33.3% | 15.7% | 5.8% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Eih ($EIHOTEL) | 4.5% | 5.5% | 4.5% | 5.8% | |
| |
|---|
| Median (29 companies) | 7.9% | 5.9% | 4.7% | 2.8% | 3.5% |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
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 ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| |
|---|
| Median (19 companies) | 2.2x | 1.8x | 2.3x | 1.0x | 0.9x |
|---|
| The Byke Hospitality ($THEBYKE) | -0.1x | 2.7x | 1.1x | 0.4x | 0.3x |
