Asian Hotels (East) Net Debt / EBITDA dropped on 1.7x from 8.9x to 7.1x in 2015 and Debt decreased on 9.1%
29-05-2015 • About Asian Hotels (East) (
$AHLEAST) • By InTwits
Asian Hotels (East) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asian Hotels (East) doesn't have a profitable business model yet: FY2015 ROIC is 1.1%
- Asian Hotels (East) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 15.8%.
- CAPEX is quite volatile: 35.3 in FY2015, 41.6 in FY2014, 181 in FY2013, 9.6 in FY2012, 14.6 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is 7.1x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asian Hotels (East) ($AHLEAST) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 826 | 854 | 1,511 | 1,797 | 1,884 | 4.9% |
| EBITDA | 255 | 269 | 358 | 392 | 443 | 13.0% |
| Net Income | 311 | 280 | 107 | -75 | -219 | |
Balance Sheet
|
|---|
| Cash | 25 | 12 | 37 | 48 | 43 | -11.1% |
| Short Term Debt | 5 | 5 | 190 | 66 | 101 | 52.5% |
| Long Term Debt | 0 | 0 | 3,343 | 3,458 | 3,103 | -10.3% |
Cash flow
|
|---|
| Capex | 15 | 10 | 181 | 42 | 35 | -15.1% |
Ratios
|
|---|
| Revenue growth | -62.1% | 3.4% | 76.9% | 18.9% | 4.9% | |
| EBITDA growth | | 5.5% | 33.0% | 9.5% | 13.0% | |
| EBITDA Margin | 30.8% | 31.5% | 23.7% | 21.8% | 23.5% | 1.7% |
| Net Income Margin | 37.7% | 32.7% | 7.1% | -4.2% | -11.6% | -7.5% |
| CAPEX, % of revenue | 1.8% | 1.1% | 12.0% | 2.3% | 1.9% | -0.4% |
| ROIC | | 2.5% | 1.7% | 1.2% | 1.1% | -0.1% |
| ROE | | 3.6% | 1.3% | -0.9% | -2.8% | -1.9% |
| Net Debt/EBITDA | -0.1x | -0.0x | 9.8x | 8.9x | 7.1x | -1.7x |
Revenue and profitability
Asian Hotels (East)'s Revenue increased on 4.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 66.7% to 65.1% in FY2015.
Net Income marign decreased on 7.5 pp from -4.2% to -11.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in FY2015. Asian Hotels (East)'s CAPEX/Revenue increased slightly on 0.75 pp from 1.1% in FY2012 to 1.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.4%.
Return on investment
The company operates at low but positive ROIC (1.10%) and negative ROE (-2.83%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.9 pp from -0.94% to -2.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.1x and Debt / EBITDA is 7.2x. Net Debt / EBITDA dropped on 1.7x from 8.9x to 7.1x in FY2015. Debt decreased on 9.1% in FY2015 while cash dropped on 11.1% in FY2015.
Appendix 1: Peers in Hotels
Below we provide Asian Hotels (East) benchmarking against other companies in Hotels 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 |
|---|
| 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) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
| Hotel Leelaventure ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
| Mahindra Holidays & Resorts India ($MHRIL) | | 15.5% | 27.8% | 10.5% | -8.0% |
| |
|---|
| Median (15 companies) | -22.5% | 15.5% | 8.6% | 5.5% | 5.1% |
|---|
| Asian Hotels (East) ($AHLEAST) | | 3.4% | 76.9% | 18.9% | 4.9% |
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 ($THEBYKE) | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% |
| |
|---|
| Median (13 companies) | 25.3% | 21.7% | 22.6% | 20.0% | 16.9% |
|---|
| Asian Hotels (East) ($AHLEAST) | 30.8% | 31.5% | 23.7% | 21.8% | 23.5% |
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% | 36.1% |
| 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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 27.3% | 30.8% | 22.1% | 11.4% | 4.8% |
|---|
| Asian Hotels (East) ($AHLEAST) | 1.8% | 1.1% | 12.0% | 2.3% | 1.9% |
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 ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| |
|---|
| Median (29 companies) | 7.8% | 5.9% | 5.0% | 4.1% | 3.2% |
|---|
| Asian Hotels (East) ($AHLEAST) | | 2.5% | 1.7% | 1.2% | 1.1% |
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 | 24.8x |
| Kamat Hotels (India) ($KAMATHOTEL) | 15.0x | 13.6x | 17.8x | 15.1x | |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| Country Club (India) ($COUNCLB) | 1.4x | 2.0x | 1.8x | 3.2x | |
| |
|---|
| Median (19 companies) | 2.2x | 2.0x | 2.0x | 0.9x | 0.6x |
|---|
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | 7.1x |
