Nava Bharat Ventures EBITDA dropped on 34.7% in 2015 and EBITDA Margin dropped on 10.7 pp from 27.8% to 17.1%
29-05-2015 • About Nava Bharat Ventures (
$NBVENTURES) • By InTwits
Nava Bharat Ventures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nava Bharat Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 52.9%. At the same time it's in pair with industry average of 46.9%.
- CAPEX is quite volatile: 10,038 in FY2015, 12,069 in FY2014, 3,434 in FY2013, 6,742 in FY2012, 4,269 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nava Bharat Ventures ($NBVENTURES) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,905 | 9,774 | 11,272 | 17,089 | 18,138 | 6.1% |
| EBITDA | 3,047 | 1,974 | 2,751 | 4,751 | 3,103 | -34.7% |
| Net Income | 3,434 | 2,841 | 1,904 | 2,799 | 2,060 | -26.4% |
Balance Sheet
|
|---|
| Cash | 4,944 | 5,442 | 5,913 | 1,765 | 1,405 | -20.4% |
| Short Term Debt | 1,551 | 3,511 | 8,444 | 7,947 | 12,228 | 53.9% |
| Long Term Debt | 4,096 | 4,533 | 4,283 | 3,836 | 3,151 | -17.9% |
Cash flow
|
|---|
| Capex | 4,269 | 6,742 | 3,434 | 12,069 | 10,038 | -16.8% |
Ratios
|
|---|
| Revenue growth | -50.8% | -10.4% | 15.3% | 51.6% | 6.1% | |
| EBITDA growth | -44.2% | -35.2% | 39.4% | 72.7% | -34.7% | |
| EBITDA Margin | 27.9% | 20.2% | 24.4% | 27.8% | 17.1% | -10.7% |
| Net Income Margin | 31.5% | 29.1% | 16.9% | 16.4% | 11.4% | -5.0% |
| CAPEX, % of revenue | 39.1% | 69.0% | 30.5% | 70.6% | 55.3% | -15.3% |
| ROIC | 11.7% | 5.3% | 6.3% | 9.2% | 5.2% | -4.0% |
| ROE | 19.7% | 13.5% | 8.0% | 10.2% | 6.9% | -3.3% |
| Net Debt/EBITDA | 0.2x | 1.3x | 2.5x | 2.1x | 4.5x | 2.4x |
Revenue and profitability
Nava Bharat Ventures's Revenue increased on 6.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.5 pp from 17.5% to 20.0% in FY2015.
Net Income marign decreased on 5.0 pp from 16.4% to 11.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 55.3%. The company's CAPEX/Revenue dropped on 13.6 pp from 69.0% in FY2012 to 55.3% in FY2015. Average CAPEX/Revenue for the last three years was 52.1%.Nava Bharat Ventures investments to CAPEX were large: 323% of EBITDA.
Return on investment
The company operates at low ROIC (5.22%) and ROE (6.94%). ROIC decreased on 4.0 pp from 9.2% to 5.2% in FY2015. ROE decreased on 3.3 pp from 10.2% to 6.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is 5.0x. Net Debt / EBITDA surged on 2.4x from 2.1x to 4.5x in FY2015. Debt surged on 30.5% in FY2015 while cash dropped on 20.4% in FY2015.
Valuation
Nava Bharat Ventures's trades at EV/EBITDA 8.9x and P/E 6.6x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Electric Utilities
Below you can find Nava Bharat Ventures benchmarking vs. other companies in Electric Utilities 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 |
|---|
| Adani Power ($ADANIPOWER) | | 91.5% | 65.7% | 128.0% | 21.7% |
| Ptc India ($PTC) | | -12.1% | 14.2% | 31.5% | 14.9% |
| Bf Utilities ($BFUTILITIE) | -79.1% | 41.4% | 9.2% | 20.6% | |
| Power Grid Corporation Of India ($POWERGRID) | -63.7% | 19.7% | 27.2% | 18.9% | |
| Nhpc ($NHPC) | | 40.3% | -11.2% | 15.8% | 11.2% |
| |
|---|
| Median (16 companies) | -63.1% | 32.0% | 14.2% | 8.4% | 5.5% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | | -10.4% | 15.3% | 51.6% | 6.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 85.4% | 83.7% | 85.6% | 84.9% | |
| Bf Utilities ($BFUTILITIE) | 36.4% | 43.9% | 55.1% | 61.2% | |
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | |
| Nhpc ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% |
| Orient Green Power Company ($GREENPOWER) | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% |
| |
|---|
| Median (17 companies) | 31.9% | 28.3% | 25.5% | 25.0% | 20.7% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 27.9% | 20.2% | 24.4% | 27.8% | 17.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | |
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | |
| Gvk Power & Infrastructure ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| Orient Green Power Company ($GREENPOWER) | 340.9% | 422.5% | 170.0% | 77.0% | 19.3% |
| Ksk Energy Ventures ($KSK) | 132.8% | 161.9% | 80.3% | 57.0% | |
| |
|---|
| Median (15 companies) | 76.3% | 102.5% | 46.8% | 30.3% | 16.3% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 39.1% | 69.0% | 30.5% | 70.6% | 55.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom T&D India ($ALSTOMT&D) | 11.2% | 0.0% | 15.7% | 14.6% | 16.1% |
| Ptc India ($PTC) | 8.1% | 11.2% | 10.4% | 13.6% | 12.3% |
| Ntpc ($NTPC) | 8.7% | 9.0% | 9.6% | 9.1% | 6.3% |
| Tata Power Co ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| Power Grid Corporation Of India ($POWERGRID) | | 8.3% | 8.8% | 8.4% | |
| |
|---|
| Median (19 companies) | 4.2% | 5.1% | 5.4% | 4.9% | 6.5% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 11.7% | 5.3% | 6.3% | 9.2% | 5.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | |
| Gvk Power & Infrastructure ($GVKPIL) | 9.6x | 19.1x | 23.9x | 20.1x | 20.2x |
| Lanco Infratech ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | |
| Gmr Infrastructure ($GMRINFRA) | 7.9x | 19.5x | 15.1x | 16.7x | |
| |
|---|
| Median (19 companies) | 7.9x | 11.3x | 8.6x | 6.6x | 5.4x |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 0.2x | 1.3x | 2.5x | 2.1x | 4.5x |
