Arihant Superstructures reports 674% Net Income growth and 2.8 pp EBITDA Margin growth from 20.1% to 22.9%
28-05-2015 • About Arihant Superstructures (
$ASL) • By InTwits
Arihant Superstructures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.9% in FY2015, 20.1% in FY2014, 11.1% in FY2013, 19.6% in FY2012, 10.1% in FY2011
- Arihant Superstructures has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 10.2 in FY2015, 15.2 in FY2014, 66.2 in FY2013, 2.3 in FY2012, 20.9 in FY2011
- The company has business model with average profitability: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arihant Superstructures ($ASL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,017 | 646 | 704 | 1,001 | 1,079 | 7.8% |
| EBITDA | 103 | 127 | 78 | 201 | 247 | 22.6% |
| Net Income | 73 | 53 | -29 | 13 | 101 | 673.6% |
Balance Sheet
|
|---|
| Cash | 7 | 212 | 32 | 55 | 31 | -43.8% |
| Short Term Debt | 381 | 719 | 918 | 995 | 469 | -52.8% |
| Long Term Debt | 86 | 3 | 335 | 291 | 991 | 241.0% |
Cash flow
|
|---|
| Capex | 21 | 2 | 66 | 15 | 10 | -33.0% |
Ratios
|
|---|
| Revenue growth | -13.9% | -36.5% | 9.1% | 42.0% | 7.8% | |
| EBITDA growth | 244.1% | 23.7% | -38.2% | 157.0% | 22.6% | |
| EBITDA Margin | 10.1% | 19.6% | 11.1% | 20.1% | 22.9% | 2.8% |
| Net Income Margin | 7.1% | 8.3% | -4.2% | 1.3% | 9.4% | 8.1% |
| CAPEX, % of revenue | 2.1% | 0.4% | 9.4% | 1.5% | 0.9% | -0.6% |
| ROIC | 20.2% | 12.2% | 4.9% | 10.6% | 12.0% | 1.4% |
| ROE | 27.9% | 14.0% | -6.4% | 2.5% | 17.6% | 15.2% |
| Net Debt/EBITDA | 4.5x | 4.0x | 15.6x | 6.1x | 5.8x | -0.3x |
Revenue and profitability
Arihant Superstructures's Revenue increased on 7.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 24.2% to 19.8% in FY2015.
Net Income marign increased on 8.1 pp from 1.3% to 9.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Arihant Superstructures had CAPEX/Revenue of 0.95%. Arihant Superstructures's CAPEX/Revenue increased slightly on 0.59 pp from 0.35% in FY2012 to 0.95% in FY2015. It's average CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at good ROE (17.65%) while ROIC is low (11.97%). ROIC increased slightly on 1.4 pp from 10.6% to 12.0% in FY2015. ROE surged on 15.2 pp from 2.5% to 17.6% in FY2015.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 6.1x to 5.8x in FY2015. Debt surged on 13.6% in FY2015 while cash dropped on 43.8% in FY2015.
Valuation
Arihant Superstructures's trades at EV/EBITDA 13.7x and P/E 19.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 14.3x with the industry average at 4.7x.
Appendix 1: Peers in Realty
Below we provide Arihant Superstructures benchmarking against other companies in Realty 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 |
|---|
| Sunteck Realty ($SUNTECK) | | -16.0% | 77.7% | 2,963.6% | -67.3% |
| Nitesh Estates ($NITESHEST) | | -6.3% | -28.7% | 259.1% | -3.4% |
| The Phoenix Mills ($PHOENIXLTD) | | 87.7% | 19.1% | 208.3% | 14.1% |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Lancor Holdings ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -23.4% | 0.6% | 3.4% | -4.5% | 13.2% |
|---|
| Arihant Superstructures ($ASL) | | -36.5% | 9.1% | 42.0% | 7.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | 78.9% |
| Tci Developers ($TCIDEVELOP) | | | | | 75.9% |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% |
| Sunteck Realty ($SUNTECK) | 33.7% | 32.8% | 18.1% | 30.3% | 44.2% |
| |
|---|
| Median (27 companies) | 24.3% | 19.9% | 18.1% | 19.8% | 25.3% |
|---|
| Arihant Superstructures ($ASL) | 10.1% | 19.6% | 11.1% | 20.1% | 22.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | 7.3% |
| |
|---|
| Median (23 companies) | 5.5% | 4.9% | 2.3% | 3.7% | 2.6% |
|---|
| Arihant Superstructures ($ASL) | 2.1% | 0.4% | 9.4% | 1.5% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | 6.8% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
| |
|---|
| Median (50 companies) | 9.2% | 5.7% | 4.8% | 5.6% | 7.6% |
|---|
| Arihant Superstructures ($ASL) | 20.2% | 12.2% | 4.9% | 10.6% | 12.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| |
|---|
| Median (39 companies) | 3.8x | 5.3x | 4.8x | 4.9x | 4.0x |
|---|
| Arihant Superstructures ($ASL) | 4.5x | 4.0x | 15.6x | 6.1x | 5.8x |
