Eih reports 41.1% Net Income decline and 0.94 pp EBITDA Margin growth from 21.7% to 22.7%
30-05-2015 • About Eih (
$EIHOTEL) • By InTwits
Eih reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eih has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.1%. At the same time it's in pair with industry average of 12.4%.
- CAPEX is quite volatile: 1,386 in FY2015, 1,625 in FY2014, 3,030 in FY2013, 2,491 in FY2012, 1,231 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eih ($EIHOTEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,520 | 14,072 | 14,685 | 15,466 | 16,683 | 7.9% |
| EBITDA | 2,699 | 3,256 | 2,967 | 3,358 | 3,779 | 12.5% |
| Net Income | -52 | 1,223 | 418 | 1,071 | 631 | -41.1% |
Balance Sheet
|
|---|
| Cash | 6,781 | 942 | 1,164 | 1,213 | 1,369 | 12.8% |
| Short Term Debt | 4,208 | 2,107 | 3,621 | 1,987 | 1,985 | -0.1% |
| Long Term Debt | 6,685 | 3,477 | 3,819 | 2,531 | 2,196 | -13.2% |
Cash flow
|
|---|
| Capex | 2,370 | 1,910 | 1,767 | 1,094 | 1,498 | 36.9% |
Ratios
|
|---|
| Revenue growth | 48.2% | 12.4% | 4.4% | 5.3% | 7.9% | |
| EBITDA growth | 23.6% | 20.7% | -8.9% | 13.2% | 12.5% | |
| EBITDA Margin | 21.6% | 23.1% | 20.2% | 21.7% | 22.7% | 0.9% |
| Net Income Margin | -0.4% | 8.7% | 2.8% | 6.9% | 3.8% | -3.1% |
| CAPEX, % of revenue | 18.9% | 13.6% | 12.0% | 7.1% | 9.0% | 1.9% |
| ROIC | 4.5% | 5.5% | 4.5% | 5.8% | 6.3% | 0.5% |
| ROE | -0.3% | 4.8% | 1.6% | 4.1% | 2.4% | -1.7% |
| Net Debt/EBITDA | 1.5x | 1.4x | 2.1x | 1.0x | 0.7x | -0.2x |
Revenue and profitability
Eih's Revenue increased on 7.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 14.4% to 12.8% in FY2015.
Net Income marign decreased on 3.1 pp from 6.9% to 3.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Eih's CAPEX/Revenue was 9.0% in FY2015. Eih showed decline in CAPEX/Revenue of 4.6 pp from 13.6% in FY2012 to 9.0% in FY2015. It's average CAPEX/Revenue for the last three years was 9.4%.
Return on investment
The company operates at low ROIC (6.35%) and ROE (2.42%). ROIC increased slightly on 0.51 pp from 5.8% to 6.3% in FY2015. ROE decreased slightly on 1.7 pp from 4.1% to 2.4% in FY2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.0x to 0.7x in FY2015. Debt decreased on 7.4% in FY2015 while cash surged on 12.8% in FY2015.
Appendix 1: Peers in Hotels
Below we provide Eih benchmarking against other companies in Hotels 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 |
|---|
| Asian Hotels (West) ($AHLWEST) | | 0.8% | -0.2% | 3.1% | 96.5% |
| Sterling Holiday Resorts (India) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
| Royale Manor Hotels & Industries ($RAYALEMA) | | 0.9% | 2.2% | 5.5% | 18.9% |
| The Byke Hospitality ($THEBYKE) | | 47.6% | 105.7% | 54.3% | 16.5% |
| India Tourism Development Corporation ($ITDC) | | 6.9% | 3.2% | 7.1% | 7.2% |
| |
|---|
| Median (12 companies) | -22.5% | 15.5% | 12.7% | 5.9% | 4.0% |
|---|
| Eih ($EIHOTEL) | | 12.4% | 4.4% | 5.3% | 7.9% |
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 ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
| |
|---|
| Median (16 companies) | 25.3% | 21.7% | 22.9% | 20.0% | 18.9% |
|---|
| Eih ($EIHOTEL) | 21.6% | 23.1% | 20.2% | 21.7% | 22.7% |
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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 27.3% | 30.8% | 22.1% | 11.4% | 4.8% |
|---|
| Eih ($EIHOTEL) | 18.9% | 13.6% | 12.0% | 7.1% | 9.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | | | | | 15.9% |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.1% | 13.4% | 22.2% | 16.3% | 6.3% |
| Oriental Hotels ($ORIENTHOT) | 8.1% | 6.4% | 4.3% | 2.7% | 3.8% |
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| |
|---|
| Median (23 companies) | 7.9% | 5.9% | 5.0% | 2.8% | 2.1% |
|---|
| Eih ($EIHOTEL) | 4.5% | 5.5% | 4.5% | 5.8% | 6.3% |
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 |
| 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 |
| Tgb Banquets And Hotels ($TGBHOTELS) | 4.6x | 3.7x | 3.0x | 2.7x | 4.0x |
| |
|---|
| Median (15 companies) | 2.2x | 2.0x | 2.2x | 0.9x | 0.3x |
|---|
| Eih ($EIHOTEL) | 1.5x | 1.4x | 2.1x | 1.0x | 0.7x |
