B.L.Kashyap And Sons Net Debt / EBITDA surged on 27.4x from 12.7x to 40.1x in 2015 while Revenue dropped on 38.2%
28-05-2015 • About B.L.Kashyap And Sons (
$BLKASHYAP) • By InTwits
B.L.Kashyap And Sons reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- B.L.Kashyap And Sons is a company in decline: FY2015 revenue growth was -38.2%, 5 years revenue CAGR was -3.0%
- EBITDA Margin is quite volatile: 2.2% in FY2015, 3.9% in FY2014, 6.9% in FY2013, 3.9% in FY2012, 7.6% in FY2011
- B.L.Kashyap And Sons has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 197 in FY2015, 221 in FY2014, 228 in FY2013, 1,007 in FY2012, 1,726 in FY2011
- The company has unprofitable business model: ROIC is at -2.6%
- It operates with high leverage: Net Debt/EBITDA is 40.1x while industry average is 7.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
B.L.Kashyap And Sons ($BLKASHYAP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,852 | 19,378 | 15,433 | 13,491 | 8,343 | -38.2% |
| EBITDA | 1,208 | 763 | 1,072 | 527 | 186 | -64.7% |
| Net Income | 488 | -55 | 84 | -850 | -579 | |
Balance Sheet
|
|---|
| Cash | 294 | 119 | 144 | 128 | 148 | 15.5% |
| Short Term Debt | 2,654 | 4,087 | 4,985 | 4,811 | 4,584 | -4.7% |
| Long Term Debt | 2,225 | 2,256 | 1,396 | 2,005 | 3,032 | 51.2% |
Cash flow
|
|---|
| Capex | 1,726 | 1,007 | 228 | 221 | 197 | -10.7% |
Ratios
|
|---|
| Revenue growth | 63.3% | 22.2% | -20.4% | -12.6% | -38.2% | |
| EBITDA growth | 34.4% | -36.9% | 40.5% | -50.8% | -64.7% | |
| EBITDA Margin | 7.6% | 3.9% | 6.9% | 3.9% | 2.2% | -1.7% |
| Net Income Margin | 3.1% | -0.3% | 0.5% | -6.3% | -6.9% | -0.6% |
| CAPEX, % of revenue | 10.9% | 5.2% | 1.5% | 1.6% | 2.4% | 0.7% |
| ROIC | 9.6% | 4.4% | 6.9% | 2.6% | -2.6% | -5.2% |
| ROE | 9.3% | -1.0% | 1.5% | -16.8% | -13.3% | 3.5% |
| Net Debt/EBITDA | 3.8x | 8.2x | 5.8x | 12.7x | 40.1x | 27.4x |
Revenue and profitability
The company's Revenue dropped on 38.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign decreased slightly on 0.64 pp from -6.3% to -6.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.4%. CAPEX/Revenue decreased on 2.8 pp from 5.2% in FY2012 to 2.4% in FY2015. It's average CAPEX/Revenue for the last three years was 1.8%.Battling declining revenue the company made large investments to CAPEX (106% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.60%) and ROE (-13.32%). ROIC decreased on 5.2 pp from 2.6% to -2.6% in FY2015. ROE increased on 3.5 pp from -16.8% to -13.3% in FY2015.
Leverage (Debt)
Debt level is 40.1x Net Debt / EBITDA and 40.9x Debt / EBITDA. Net Debt / EBITDA jumped on 27.4x from 12.7x to 40.1x in FY2015. Debt jumped on 11.7% in FY2015 while cash surged on 15.5% in FY2015.
Appendix 1: Peers in Realty
Below you can find B.L.Kashyap And Sons benchmarking vs. other companies in Realty 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 |
|---|
| 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 ($LANCORHOL) | | -47.4% | -23.9% | 74.0% | 10.5% |
| |
|---|
| Median (33 companies) | -23.4% | -1.6% | 5.6% | -1.8% | 13.2% |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | | 22.2% | -20.4% | -12.6% | -38.2% |
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% | 20.1% | 18.1% | 20.1% | 25.3% |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | 7.6% | 3.9% | 6.9% | 3.9% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($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) | 5.3% | 4.7% | 2.6% | 3.7% | 2.6% |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | 10.9% | 5.2% | 1.5% | 1.6% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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% | 5.9% | 4.6% | 5.7% | 8.4% |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | 9.6% | 4.4% | 6.9% | 2.6% | -2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($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) | 4.2x | 5.1x | 4.8x | 4.9x | 4.0x |
|---|
| B.L.Kashyap And Sons ($BLKASHYAP) | 3.8x | 8.2x | 5.8x | 12.7x | 40.1x |
