Irb Infrastructure Developers EBITDA jumped on 25.3% in 2015 and EBITDA Margin surged on 10.2 pp from 47.3% to 57.5%
29-05-2015 • About Irb Infrastructure Developers (
$IRB) • By InTwits
Irb Infrastructure Developers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Irb Infrastructure Developers has high CAPEX intensity: 5 year average CAPEX/Revenue was 69.5%. At the same time it's a lot of higher than industry average of 34.9%.
- CAPEX is quite volatile: 151 in FY2015, 311 in FY2014, 429 in FY2013, 896 in FY2012, 678 in FY2011
- The company has business model with low profitability: ROIC is at 9.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.0x while industry average is 5.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Irb Infrastructure Developers ($IRB) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,381 | 31,330 | 36,872 | 37,319 | 38,489 | 3.1% |
| SG&A | | | | | 36 | |
| EBITDA | 11,113 | 13,985 | 16,371 | 17,652 | 22,118 | 25.3% |
| Net Income | 4,524 | 4,960 | 5,567 | 4,591 | 5,429 | 18.2% |
Balance Sheet
|
|---|
| Cash | 11,277 | 3,076 | 2,382 | 4,217 | 14,940 | 254.3% |
| Short Term Debt | 15,251 | 20,267 | 21,412 | 16,861 | 17,718 | 5.1% |
| Long Term Debt | 30,991 | 50,455 | 66,349 | 93,980 | 108,044 | 15.0% |
Cash flow
|
|---|
| Capex | 17,550 | 24,201 | 24,774 | 26,536 | 23,125 | -12.9% |
Ratios
|
|---|
| Revenue growth | -49.7% | 28.5% | 17.7% | 1.2% | 3.1% | |
| EBITDA growth | 38.1% | 25.8% | 17.1% | 7.8% | 25.3% | |
| EBITDA Margin | 45.6% | 44.6% | 44.4% | 47.3% | 57.5% | 10.2% |
| Net Income Margin | 18.6% | 15.8% | 15.1% | 12.3% | 14.1% | 1.8% |
| SG&A, % of revenue | | | | | 0.1% | 0.1% |
| CAPEX, % of revenue | 72.0% | 77.2% | 67.2% | 71.1% | 60.1% | -11.0% |
| ROIC | 14.5% | 12.8% | 10.7% | 9.6% | 9.5% | -0.1% |
| ROE | 20.2% | 18.8% | 18.2% | 13.5% | 13.7% | 0.2% |
| Net Debt/EBITDA | 3.1x | 4.8x | 5.2x | 6.0x | 5.0x | -1.0x |
Revenue and profitability
Irb Infrastructure Developers's Revenue increased on 3.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased slightly on 1.8 pp from 12.3% to 14.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Irb Infrastructure Developers had CAPEX/Revenue of 60.1%. Irb Infrastructure Developers's CAPEX/Revenue dropped on 17.2 pp from 77.2% in FY2012 to 60.1% in FY2015. Average CAPEX/Revenue for the last three years was 66.1%.Irb Infrastructure Developers maintained rich investment policy and has spent a lot to CAPEX (105% of EBITDA).
Return on investment
The company operates at good ROE (13.71%) while ROIC is low (9.49%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.7x. Net Debt / EBITDA dropped on 1.0x from 6.0x to 5.0x in FY2015. Debt jumped on 13.5% in FY2015 while cash surged on 254% in FY2015.
Valuation
Irb Infrastructure Developers's trades at EV/EBITDA 8.9x and P/E 16.0x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Roads & Highways
Below we provide Irb Infrastructure Developers benchmarking against other companies in Roads & Highways 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | | 10.6% | 13.3% | 11.2% | 3.0% |
| Il&Fs Transportation Networks ($IL&FSTRANS) | | 38.5% | 18.5% | -0.9% | -1.3% |
| |
|---|
| Median (2 companies) | | 24.5% | 15.9% | 5.2% | 0.9% |
|---|
| Irb Infrastructure Developers ($IRB) | | 28.5% | 17.7% | 1.2% | 3.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 71.6% | 71.7% | 68.3% | 73.0% | 70.4% |
| Il&Fs Transportation Networks ($IL&FSTRANS) | 29.2% | 26.5% | 27.9% | 28.9% | 33.1% |
| |
|---|
| Median (2 companies) | 50.4% | 49.1% | 48.1% | 50.9% | 51.7% |
|---|
| Irb Infrastructure Developers ($IRB) | 45.6% | 44.6% | 44.4% | 47.3% | 57.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 35.0% | 34.5% | 46.1% | 48.5% | 43.9% |
| Noida Toll Bridge Company ($NOIDATOLL) | 1.0% | 0.3% | 1.0% | 0.2% | 0.7% |
| |
|---|
| Median (2 companies) | 18.0% | 17.4% | 23.5% | 24.4% | 22.3% |
|---|
| Irb Infrastructure Developers ($IRB) | 72.0% | 77.2% | 67.2% | 71.1% | 60.1% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 9.6% | 10.9% | 12.8% | 15.0% | 14.4% |
| Il&Fs Transportation Networks ($IL&FSTRANS) | 17.9% | 13.6% | 10.9% | 8.1% | 7.3% |
| |
|---|
| Median (2 companies) | 13.7% | 12.3% | 11.8% | 11.6% | 10.9% |
|---|
| Irb Infrastructure Developers ($IRB) | 14.5% | 12.8% | 10.7% | 9.6% | 9.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 3.5x | 6.8x | 7.6x | 9.6x | 10.6x |
| Noida Toll Bridge Company ($NOIDATOLL) | 2.2x | 1.1x | 0.3x | 0.1x | 0.2x |
| |
|---|
| Median (2 companies) | 2.9x | 3.9x | 3.9x | 4.8x | 5.4x |
|---|
| Irb Infrastructure Developers ($IRB) | 3.1x | 4.8x | 5.2x | 6.0x | 5.0x |
