Jmc Projects (India) reports 41.6% EBITDA growth while 7.3% Revenue decline
28-05-2015 • About Jmc Projects (India) (
$JMCPROJECT) • By InTwits
Jmc Projects (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jmc Projects (India) is a company in decline: FY2015 revenue growth was -7.3%, 5 years revenue CAGR was -4.4%
- Jmc Projects (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 794 in FY2015, 5,025 in FY2014, 420 in FY2013, 921 in FY2012, 1,079 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.1%
- It operates with high leverage: Net Debt/EBITDA is 8.7x while industry average is 5.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jmc Projects (India) ($JMCPROJECT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,785 | 20,654 | 25,424 | 26,637 | 24,698 | -7.3% |
| EBITDA | 1,171 | 1,417 | 1,097 | 1,618 | 2,291 | 41.6% |
| Net Income | 355 | 452 | 86 | -106 | -243 | |
Balance Sheet
|
|---|
| Cash | 312 | 28 | 342 | 256 | 209 | -18.4% |
| Short Term Debt | 727 | 1,152 | 1,644 | 2,157 | 3,788 | 75.6% |
| Long Term Debt | 802 | 3,098 | 6,973 | 12,915 | 16,259 | 25.9% |
Cash flow
|
|---|
| Capex | 1,079 | 921 | 420 | 5,025 | 794 | -84.2% |
Ratios
|
|---|
| Revenue growth | -55.4% | 49.8% | 23.1% | 4.8% | -7.3% | |
| EBITDA growth | 11.4% | 21.0% | -22.6% | 47.5% | 41.6% | |
| EBITDA Margin | 8.5% | 6.9% | 4.3% | 6.1% | 9.3% | 3.2% |
| Net Income Margin | 2.6% | 2.2% | 0.3% | -0.4% | -1.0% | -0.6% |
| CAPEX, % of revenue | 7.8% | 4.5% | 1.7% | 18.9% | 3.2% | -15.6% |
| ROIC | 16.2% | 13.9% | 5.2% | 4.3% | 6.1% | 1.8% |
| ROE | 11.4% | 11.5% | 2.1% | -2.4% | -5.6% | -3.2% |
| Net Debt/EBITDA | 1.0x | 3.0x | 7.5x | 9.2x | 8.7x | -0.5x |
Revenue and profitability
The company's Revenue decreased on 7.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.2 pp from 6.1% to 9.3% in FY2015.
Net Income marign decreased slightly on 0.59 pp from -0.40% to -0.98% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Jmc Projects (India)'s CAPEX/Revenue was 3.2% in FY2015. CAPEX/Revenue decreased slightly on 1.2 pp from 4.5% in FY2012 to 3.2% in FY2015. It's average CAPEX/Revenue for the last three years was 7.9%.
Return on investment
The company operates at low but positive ROIC (6.07%) and negative ROE (-5.60%). ROIC increased slightly on 1.8 pp from 4.3% to 6.1% in FY2015. ROE decreased on 3.2 pp from -2.4% to -5.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.7x and Debt / EBITDA is 8.8x. Net Debt / EBITDA dropped on 0.5x from 9.2x to 8.7x in FY2015. Debt jumped on 33.0% in FY2015 while cash dropped on 18.4% in FY2015.
Appendix 1: Peers in Construction & Engineering
Below you can find Jmc Projects (India) benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| Madhucon Projects ($MADHUCON) | -72.3% | -19.5% | 61.7% | 81.2% | |
| C & C Constructions ($CANDC) | 7.1% | -11.6% | -12.2% | 31.7% | |
| Mbl Infrastructures ($MBLINFRA) | | 26.3% | 7.1% | 30.3% | 11.1% |
| Atlanta ($ATLANTA) | | -47.6% | 115.1% | 28.1% | 50.2% |
| Arss Infrastructure Projects ($ARSSINFRA) | | -5.3% | -34.8% | 17.8% | -27.8% |
| |
|---|
| Median (31 companies) | -15.4% | 8.7% | 6.6% | 7.1% | 7.6% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | | 49.8% | 23.1% | 4.8% | -7.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Associates ($JPASSOCIAT) | 44.0% | 36.9% | 35.9% | 32.4% | |
| Atlanta ($ATLANTA) | 44.1% | 28.5% | 34.6% | 30.8% | 21.4% |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 28.0% | 27.2% | 30.0% | 30.0% | |
| Madhucon Projects ($MADHUCON) | 11.6% | 8.4% | 31.9% | 22.1% | |
| Arss Infrastructure Projects ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | 31.3% |
| |
|---|
| Median (29 companies) | 12.4% | 12.4% | 11.3% | 10.7% | 10.8% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 8.5% | 6.9% | 4.3% | 6.1% | 9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Madhucon Projects ($MADHUCON) | 149.8% | 234.5% | 155.1% | 76.0% | |
| Jaiprakash Associates ($JPASSOCIAT) | 114.7% | 97.0% | 65.5% | 45.0% | |
| Supreme Infrastructure India ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | |
| Man Infraconstruction ($MANINFRA) | 11.5% | 7.8% | 1.6% | 25.0% | 18.6% |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 6.8% | 0.0% | 11.2% | 14.1% | |
| |
|---|
| Median (23 companies) | 5.5% | 7.7% | 8.6% | 4.0% | 2.6% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipper ($SKIPPER) | 10.6% | 10.4% | 13.5% | 14.7% | 27.4% |
| Mbl Infrastructures ($MBLINFRA) | 24.3% | 21.3% | 13.4% | 14.0% | 13.6% |
| Voltas ($VOLTAS) | 32.9% | 19.6% | 11.7% | 11.8% | 19.3% |
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | |
| Reliance Industrial Infrastructure ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.5% | 8.6% | 7.5% | 6.3% | 7.4% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 16.2% | 13.9% | 5.2% | 4.3% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel Engineering Company ($COROENGG) | 7.1x | | 14.4x | 54.6x | 3.2x |
| Welspun Projects ($WELPROJ) | 71.3x | 6.0x | 2.6x | 20.8x | |
| Punj Lloyd ($PUNJLLOYD) | 6.5x | 6.7x | 6.8x | 16.5x | |
| Madhucon Projects ($MADHUCON) | 40.1x | 96.8x | 19.0x | 16.4x | |
| Hindustan Construction Co ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | 9.3x |
| |
|---|
| Median (32 companies) | 3.7x | 4.7x | 5.3x | 5.9x | 2.3x |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 1.0x | 3.0x | 7.5x | 9.2x | 8.7x |
