India Tourism Development Corporation Net Income jumped on 293% in 2015 and Revenue increased on 7.2%
29-05-2015 • About India Tourism Development Corporation (
$ITDC) • By InTwits
India Tourism Development Corporation reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- India Tourism Development Corporation doesn't have a profitable business model yet: FY2015 ROIC is 0.8%
- India Tourism Development Corporation motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -2.0% for the sames years0
- India Tourism Development Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 12.1%.
- CAPEX is quite volatile: 58.0 in FY2015, 33.5 in FY2014, 44.0 in FY2013, 53.1 in FY2012, 158 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
India Tourism Development Corporation ($ITDC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,871 | 4,137 | 4,270 | 4,576 | 4,904 | 7.2% |
| EBITDA | -277 | 2 | -183 | -120 | 138 | |
| Net Income | -90 | 84 | 31 | 81 | 319 | 292.7% |
Balance Sheet
|
|---|
| Cash | 381 | 316 | 346 | 279 | 384 | 37.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 3 | |
| Long Term Debt | 17 | 17 | 17 | 33 | 35 | 6.1% |
Cash flow
|
|---|
| Capex | 158 | 53 | 44 | 34 | 58 | 73.0% |
Ratios
|
|---|
| Revenue growth | -33.0% | 6.9% | 3.2% | 7.1% | 7.2% | |
| EBITDA growth | -22.8% | -100.6% | -10,448.8% | -34.3% | -215.2% | |
| EBITDA Margin | -7.2% | 0.0% | -4.3% | -2.6% | 2.8% | 5.4% |
| Net Income Margin | -2.3% | 2.0% | 0.7% | 1.8% | 6.5% | 4.7% |
| CAPEX, % of revenue | 4.1% | 1.3% | 1.0% | 0.7% | 1.2% | 0.5% |
| ROIC | -12.4% | -2.0% | -7.7% | -5.7% | 0.8% | 6.5% |
| ROE | -3.1% | 3.0% | 1.1% | 2.8% | 10.7% | 8.0% |
| Net Debt/EBITDA | | -168.9x | | | -2.5x | -2.5x |
Revenue and profitability
The company's Revenue increased on 7.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.4 pp from -2.6% to 2.8% in FY2015.
Net Income marign increased on 4.7 pp from 1.8% to 6.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in FY2015. India Tourism Development Corporation showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.98%.
Return on investment
The company operates at low ROIC (0.81%) and ROE (10.74%). ROIC increased on 6.5 pp from -5.7% to 0.81% in FY2015. ROE increased on 8.0 pp from 2.8% to 10.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.5x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped2.5x from to -2.5x in FY2015. Debt surged on 14.1% in FY2015 while cash jumped on 37.8% in FY2015.
Valuation
India Tourism Development Corporation's trades at EV/EBITDA 91.9x and P/E 41.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 158.3x with the industry average at 4.7x.
Appendix 1: Peers in Hotels
Below you can find India Tourism Development Corporation 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) | | 3.4% | 76.9% | 18.9% | 4.9% |
| Hotel Leelaventure ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
| |
|---|
| Median (15 companies) | -22.5% | 15.5% | 12.7% | 5.5% | 4.0% |
|---|
| India Tourism Development Corporation ($ITDC) | | 6.9% | 3.2% | 7.1% | 7.2% |
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) ($ADVANIHOTR) | | | | | 25.9% |
| Asian Hotels (East) ($AHLEAST) | 30.8% | 31.5% | 23.7% | 21.8% | 23.5% |
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
| |
|---|
| Median (13 companies) | 25.3% | 21.9% | 22.9% | 21.0% | 18.5% |
|---|
| India Tourism Development Corporation ($ITDC) | -7.2% | 0.0% | -4.3% | -2.6% | 2.8% |
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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 27.3% | 30.8% | 22.1% | 11.4% | 4.8% |
|---|
| India Tourism Development Corporation ($ITDC) | 4.1% | 1.3% | 1.0% | 0.7% | 1.2% |
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 ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| |
|---|
| Median (29 companies) | 7.9% | 5.9% | 5.0% | 4.1% | 3.2% |
|---|
| India Tourism Development Corporation ($ITDC) | -12.4% | -2.0% | -7.7% | -5.7% | 0.8% |
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) ($KAMATHOTEL) | 15.0x | 13.6x | 17.8x | 15.1x | |
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | 7.1x |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| |
|---|
| Median (20 companies) | 2.0x | 2.0x | 2.1x | 1.0x | 1.0x |
|---|
