Srs Real Infrastructure Net Debt / EBITDA surged on 1.8x from 12.9x to 14.7x in 2015 and Debt surged on 15.1%
29-05-2015 • About Srs Real Infrastructure (
$SRSREAL) • By InTwits
Srs Real Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.7% in FY2015 vs. 2.8% in FY2014 vs. 2.9% in FY2011
- Srs Real Infrastructure has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 160 in FY2015, 384 in FY2014, 1,151 in FY2013, 176 in FY2012, 253 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.7%
- It operates with high leverage: Net Debt/EBITDA is 14.7x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Srs Real Infrastructure ($SRSREAL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,675 | 9,194 | 10,484 | 9,503 | 9,935 | 4.5% |
| EBITDA | 224 | 217 | 227 | 267 | 271 | 1.6% |
| Net Income | 98 | 99 | 61 | 50 | 57 | 14.2% |
Balance Sheet
|
|---|
| Cash | 74 | 104 | 176 | 295 | 314 | 6.4% |
| Short Term Debt | 2,756 | 1,565 | 1,635 | 1,836 | 2,488 | 35.5% |
| Long Term Debt | 1,861 | 1,065 | 813 | 1,896 | 1,809 | -4.6% |
Cash flow
|
|---|
| Capex | 253 | 176 | 1,151 | 384 | 160 | -58.3% |
Ratios
|
|---|
| Revenue growth | -31.8% | 19.8% | 14.0% | -9.4% | 4.5% | |
| EBITDA growth | | -3.4% | 4.7% | 17.5% | 1.6% | |
| EBITDA Margin | 2.9% | 2.4% | 2.2% | 2.8% | 2.7% | -0.1% |
| Net Income Margin | 1.3% | 1.1% | 0.6% | 0.5% | 0.6% | 0.0% |
| CAPEX, % of revenue | 3.3% | 1.9% | 11.0% | 4.0% | 1.6% | -2.4% |
| ROIC | | 3.4% | 4.3% | 4.5% | 3.7% | -0.8% |
| ROE | | 4.6% | 2.8% | 2.2% | 2.5% | 0.3% |
| Net Debt/EBITDA | 20.3x | 11.7x | 10.0x | 12.9x | 14.7x | 1.8x |
Revenue and profitability
Srs Real Infrastructure's Revenue increased on 4.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.6% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 5.5%.The company invested a large share of EBITDA (59.1%) to CAPEX.
Return on investment
The company operates at low ROIC (3.72%) and ROE (2.50%). ROIC decreased slightly on 0.80 pp from 4.5% to 3.7% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 14.7x Net Debt / EBITDA and 15.9x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 12.9x to 14.7x in FY2015. Debt jumped on 15.1% in FY2015 while cash increased on 6.4% in FY2015.
Valuation
Srs Real Infrastructure's trades at EV/EBITDA 47.7x and P/E 156.1x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 116.7x with the industry average at 4.7x.
Appendix 1: Peers in Realty
Below you can find Srs Real Infrastructure benchmarking vs. other companies in Realty 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 |
|---|
| Ajmera Realty & Infra India ($AJMERA) | | 21.3% | -61.7% | -1.8% | 109.9% |
| Godrej Properties ($GODREJPROP) | | 70.6% | 34.7% | 13.7% | 56.3% |
| Poddar Developers ($PODDARDEV) | | -18.4% | 63.9% | 152.9% | 56.0% |
| Mahindra Lifespace Developers ($MAHLIFE) | | 14.6% | 5.3% | -4.5% | 54.0% |
| Brigade Enterprises ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
| |
|---|
| Median (27 companies) | 26.7% | -1.6% | 3.4% | -1.8% | 12.3% |
|---|
| Srs Real Infrastructure ($SRSREAL) | | 19.8% | 14.0% | -9.4% | 4.5% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development & Infrastructure ($HDIL) | 83.7% | 75.8% | 40.6% | 102.5% | 78.9% |
| Tci Developers ($TCIDEVELOP) | | | | | 75.9% |
| Oberoi Realty ($OBEROIRLTY) | 58.7% | 59.3% | 58.9% | 54.5% | 56.4% |
| The Phoenix Mills ($PHOENIXLTD) | 71.8% | 54.7% | 56.2% | 46.9% | 46.2% |
| Sunteck Realty ($SUNTECK) | 33.7% | 32.8% | 18.1% | 30.3% | 44.2% |
| |
|---|
| Median (34 companies) | 24.3% | 20.1% | 18.1% | 20.1% | 23.0% |
|---|
| Srs Real Infrastructure ($SRSREAL) | 2.9% | 2.4% | 2.2% | 2.8% | 2.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| The Phoenix Mills ($PHOENIXLTD) | 138.3% | 168.3% | 108.0% | 107.1% | 7.3% |
| |
|---|
| Median (27 companies) | 5.5% | 4.9% | 2.3% | 3.5% | 2.4% |
|---|
| Srs Real Infrastructure ($SRSREAL) | 3.3% | 1.9% | 11.0% | 4.0% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($SUNTECK) | 0.5% | 0.4% | 0.4% | 24.5% | 6.8% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Puravankara Projects ($PURVA) | 11.2% | 13.3% | 17.0% | 12.3% | 9.7% |
| |
|---|
| Median (50 companies) | 9.4% | 5.9% | 5.1% | 5.7% | 6.8% |
|---|
| Srs Real Infrastructure ($SRSREAL) | | 3.4% | 4.3% | 4.5% | 3.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | 5.8x |
| Vascon Engineers ($VASCONEQ) | 2.8x | 8.4x | 11.2x | 25.9x | |
| Peninsula Land ($PENINLAND) | 2.2x | 5.5x | | 24.0x | |
| Parsvnath Developers ($PARSVNATH) | 4.5x | 5.1x | 4.7x | 14.6x | 9.0x |
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 4.8x | 4.9x | 4.0x |
|---|
| Srs Real Infrastructure ($SRSREAL) | 20.3x | 11.7x | 10.0x | 12.9x | 14.7x |
