Unitech EBITDA jumped on 317% in 2015 and Revenue jumped on 16.2%
29-05-2015 • About Unitech (
$UNITECH) • By InTwits
Unitech reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.6% in FY2015, 6.3% in FY2014, 13.4% in FY2013, 13.4% in FY2012, 27.9% in FY2011
- Unitech has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 151 in FY2015, 3,126 in FY2014, 3,094 in FY2013, 1,110 in FY2012, 3,344 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.8x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Unitech ($UNITECH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 33,960 | 24,183 | 24,405 | 29,534 | 34,312 | 16.2% |
| EBITDA | 9,468 | 3,245 | 3,280 | 1,863 | 7,766 | 316.8% |
| Net Income | 5,677 | 2,374 | 2,096 | 697 | -1,283 | -284.0% |
Balance Sheet
|
|---|
| Cash | 4,412 | 3,152 | 4,031 | 2,665 | 2,264 | -15.0% |
| Short Term Debt | 33,935 | 24,607 | 22,481 | 28,953 | 25,691 | -11.3% |
| Long Term Debt | 23,014 | 21,203 | 28,786 | 25,901 | 21,656 | -16.4% |
Cash flow
|
|---|
| Capex | 3,344 | 1,110 | 3,094 | 3,126 | 151 | -95.2% |
Ratios
|
|---|
| Revenue growth | -18.9% | -28.8% | 0.9% | 21.0% | 16.2% | |
| EBITDA growth | -11.8% | -65.7% | 1.1% | -43.2% | 316.8% | |
| EBITDA Margin | 27.9% | 13.4% | 13.4% | 6.3% | 22.6% | 16.3% |
| Net Income Margin | 16.7% | 9.8% | 8.6% | 2.4% | -3.7% | -6.1% |
| CAPEX, % of revenue | 9.8% | 4.6% | 12.7% | 10.6% | 0.4% | -10.1% |
| ROIC | 5.3% | 1.7% | 1.7% | 0.8% | 4.5% | 3.7% |
| ROE | 5.2% | 2.0% | 1.8% | 0.6% | -1.1% | -1.7% |
| Net Debt/EBITDA | 5.5x | 13.1x | 14.4x | 28.0x | 5.8x | -22.2x |
Revenue and profitability
The company's Revenue jumped on 16.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 16.3 pp from 6.3% to 22.6% in FY2015.
Net Income marign decreased on 6.1 pp from 2.4% to -3.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Unitech's CAPEX/Revenue was 0.44% in FY2015. CAPEX/Revenue decreased on 4.1 pp from 4.6% in FY2012 to 0.44% in FY2015. For the last three years the average CAPEX/Revenue was 7.9%.
Return on investment
The company operates at low but positive ROIC (4.48%) and negative ROE (-1.14%). ROIC increased on 3.7 pp from 0.81% to 4.5% in FY2015. ROE decreased slightly on 1.7 pp from 0.61% to -1.1% in FY2015.
Leverage (Debt)
Debt level is 5.8x Net Debt / EBITDA and 6.1x Debt / EBITDA. Net Debt / EBITDA dropped on 22.2x from 28.0x to 5.8x in FY2015. Debt dropped on 13.7% in FY2015 while cash dropped on 15.0% in FY2015.
Appendix 1: Peers in Realty
Below we provide Unitech benchmarking against other companies in Realty 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 |
|---|
| 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 ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
| |
|---|
| Median (27 companies) | 26.7% | 0.6% | 5.6% | -4.5% | 10.5% |
|---|
| Unitech ($UNITECH) | | -28.8% | 0.9% | 21.0% | 16.2% |
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) | 23.3% | 20.1% | 18.1% | 20.1% | 23.0% |
|---|
| Unitech ($UNITECH) | 27.9% | 13.4% | 13.4% | 6.3% | 22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($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) | 5.3% | 4.9% | 2.3% | 3.5% | 2.4% |
|---|
| Unitech ($UNITECH) | 9.8% | 4.6% | 12.7% | 10.6% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sunteck Realty ($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% |
|---|
| Unitech ($UNITECH) | 5.3% | 1.7% | 1.7% | 0.8% | 4.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vascon Engineers ($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 ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| Ajmera Realty & Infra India ($AJMERA) | 2.8x | 4.5x | 10.7x | 13.8x | 3.9x |
| |
|---|
| Median (39 companies) | 3.8x | 5.1x | 4.8x | 4.9x | 4.0x |
|---|
| Unitech ($UNITECH) | 5.5x | 13.1x | 14.4x | 28.0x | 5.8x |
