Asian Hotels (North) Net Debt / EBITDA jumped on 9.3x from 15.4x to 24.8x in 2015 while EBITDA dropped on 29.9%
28-05-2015 • About Asian Hotels (North) (
$ASIANHOTNR) • By InTwits
Asian Hotels (North) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asian Hotels (North) doesn't have a profitable business model yet: FY2015 ROIC is 0.9%
- EBITDA Margin is quite volatile: 18.5% in FY2015, 26.9% in FY2014, 22.9% in FY2013, 10.8% in FY2012, 36.6% in FY2011
- Asian Hotels (North) has high CAPEX intensity: 5 year average CAPEX/Revenue was 44.9%. At the same time it's a lot of higher than industry average of 11.5%.
- CAPEX is quite volatile: 840 in FY2015, 847 in FY2014, 1,931 in FY2013, 1,089 in FY2012, 1,843 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
- It operates with high leverage: Net Debt/EBITDA is 24.8x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asian Hotels (North) ($ASIANHOTNR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,054 | 3,535 | 3,208 | 2,278 | 2,325 | 2.1% |
| EBITDA | 1,118 | 382 | 734 | 614 | 430 | -29.9% |
| Net Income | 311 | -271 | 597 | -322 | -507 | |
Balance Sheet
|
|---|
| Cash | 55 | 119 | 74 | 333 | 49 | -85.4% |
| Short Term Debt | 1,729 | 962 | 1,515 | 2,269 | 1,963 | -13.5% |
| Long Term Debt | 8,514 | 10,025 | 6,621 | 7,534 | 8,746 | 16.1% |
Cash flow
|
|---|
| Capex | 1,843 | 1,089 | 1,931 | 847 | 840 | -0.8% |
Ratios
|
|---|
| Revenue growth | 14.8% | 15.7% | -9.2% | -29.0% | 2.1% | |
| EBITDA growth | | -65.8% | 91.9% | -16.4% | -29.9% | |
| EBITDA Margin | 36.6% | 10.8% | 22.9% | 26.9% | 18.5% | -8.4% |
| Net Income Margin | 10.2% | -7.7% | 18.6% | -14.1% | -21.8% | -7.7% |
| CAPEX, % of revenue | 60.3% | 30.8% | 60.2% | 37.2% | 36.1% | -1.0% |
| ROIC | | 0.2% | 2.2% | 2.8% | 0.9% | -1.9% |
| ROE | | -3.5% | 7.4% | -3.9% | -6.5% | -2.6% |
| Net Debt/EBITDA | 9.1x | 28.4x | 11.0x | 15.4x | 24.8x | 9.3x |
Revenue and profitability
Asian Hotels (North)'s Revenue increased on 2.1% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 26.9% to 18.5% in FY2015.
Net Income marign decreased on 7.7 pp from -14.1% to -21.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 36.1% in FY2015. The company showed CAPEX/Revenue growth of 5.3 pp from 30.8% in FY2012 to 36.1% in FY2015. For the last three years the average CAPEX/Revenue was 44.5%.The company investments to CAPEX were large: 195% of EBITDA.
Return on investment
The company operates at low but positive ROIC (0.89%) and negative ROE (-6.51%). ROIC decreased slightly on 1.9 pp from 2.8% to 0.89% in FY2015. ROE decreased on 2.6 pp from -3.9% to -6.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 24.8x and Debt / EBITDA is 24.9x. Net Debt / EBITDA surged on 9.3x from 15.4x to 24.8x in FY2015. Debt increased on 9.2% in FY2015 while cash dropped on 85.4% in FY2015.
Appendix 1: Peers in Hotels
Below you can find Asian Hotels (North) 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 ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
| |
|---|
| Median (15 companies) | -27.7% | 14.9% | 12.7% | 5.9% | 3.1% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | | 15.7% | -9.2% | -29.0% | 2.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Hotels ($JINDHOT) | | | | | 37.6% |
| Benares Hotels ($BENARAS) | | | | | 33.6% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | | | | | 25.9% |
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
| The Byke Hospitality ($THEBYKE) | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% |
| |
|---|
| Median (11 companies) | 25.3% | 21.9% | 22.6% | 20.0% | 16.9% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 36.6% | 10.8% | 22.9% | 26.9% | 18.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Country Club (India) ($COUNCLB) | 53.8% | 58.7% | 36.6% | 49.6% | |
| Sterling Holiday Resorts (India) ($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% |
| Sayaji Hotels ($SAYAJIHOTL) | 7.5% | 18.9% | 17.5% | 12.4% | |
| |
|---|
| Median (12 companies) | 20.4% | 26.0% | 17.6% | 8.8% | 4.8% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | 36.1% |
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% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| |
|---|
| Median (29 companies) | 7.8% | 5.9% | 5.0% | 4.1% | 3.8% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | | 0.2% | 2.2% | 2.8% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x |
| Kamat Hotels (India) ($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 |
| Country Club (India) ($COUNCLB) | 1.4x | 2.0x | 1.8x | 3.2x | |
| |
|---|
| Median (19 companies) | 1.8x | 1.8x | 2.0x | 0.9x | 0.6x |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 9.1x | 28.4x | 11.0x | 15.4x | 24.8x |
