Hubtown EBITDA Margin surged on 14.7 pp from 67.6% to 82.4% in 2015 while Revenue decreased on 6.4%
30-05-2015 • About Hubtown (
$HUBTOWN) • By InTwits
Hubtown reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hubtown is a company in decline: FY2015 revenue growth was -6.4%, 5 years revenue CAGR was -3.7%
- Hubtown has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 5.6%.
- CAPEX is quite volatile: 0 in FY2015, 16.8 in FY2014, 69.5 in FY2013, 34.7 in FY2012, 1,101 in FY2011
- The company has business model with average profitability: ROIC is at 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hubtown ($HUBTOWN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,764 | 4,349 | 4,411 | 4,735 | 4,433 | -6.4% |
| EBITDA | 3,489 | 2,316 | 3,192 | 3,201 | 3,650 | 14.0% |
| Net Income | 1,762 | 237 | -21 | 229 | 7 | -96.8% |
Balance Sheet
|
|---|
| Cash | 286 | 857 | 1,348 | 329 | 434 | 32.2% |
| Short Term Debt | 10,166 | 14,577 | 4,838 | 9,732 | 10,249 | 5.3% |
| Long Term Debt | 8,265 | 3,888 | 8,578 | 7,940 | 7,555 | -4.8% |
Cash flow
|
|---|
| Capex | 1,101 | 35 | 69 | 17 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 26.7% | -35.7% | 1.4% | 7.3% | -6.4% | |
| EBITDA growth | -12.5% | -33.6% | 37.8% | 0.3% | 14.0% | |
| EBITDA Margin | 51.6% | 53.3% | 72.4% | 67.6% | 82.4% | 14.7% |
| Net Income Margin | 26.0% | 5.4% | -0.5% | 4.8% | 0.2% | -4.7% |
| CAPEX, % of revenue | 16.3% | 0.8% | 1.6% | 0.4% | 0.0% | -0.4% |
| ROIC | 10.7% | 5.6% | 9.3% | 9.6% | 10.2% | 0.6% |
| ROE | 11.4% | 1.4% | -0.1% | 1.4% | 0.0% | -1.3% |
| Net Debt/EBITDA | 5.2x | 7.6x | 3.8x | 5.4x | 4.8x | -0.7x |
Revenue and profitability
The company's Revenue decreased on 6.4% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 14.7 pp from 67.6% to 82.4% in FY2015.
Net Income marign decreased on 4.7 pp from 4.8% to 0.17% in FY2015.
Return on investment
The company operates at low ROIC (10.16%) and ROE (0.04%). ROIC increased slightly on 0.59 pp from 9.6% to 10.2% in FY2015. ROE decreased slightly on 1.3 pp from 1.4% to 0.043% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.8x and Debt / EBITDA is 4.9x. Net Debt / EBITDA dropped on 0.7x from 5.4x to 4.8x in FY2015. Debt increased slightly on 0.75% in FY2015 while cash jumped on 32.2% in FY2015.
Appendix 1: Peers in Realty
Below you can find Hubtown 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 ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
| |
|---|
| Median (30 companies) | 36.4% | 0.6% | 5.6% | -4.5% | 11.4% |
|---|
| Hubtown ($HUBTOWN) | | -35.7% | 1.4% | 7.3% | -6.4% |
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 (37 companies) | 23.3% | 19.4% | 13.4% | 19.8% | 22.9% |
|---|
| Hubtown ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | 82.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($PROZONINTU) | | | | | 89.5% |
| Ashiana Housing ($ASHIANA) | | | | | 26.7% |
| Brigade Enterprises ($BRIGADE) | 42.6% | 45.7% | 10.7% | 17.0% | 18.5% |
| Prestige Estates Projects ($PRESTIGE) | 23.3% | 37.7% | 30.2% | 18.8% | 11.6% |
| Parsvnath Developers ($PARSVNATH) | 19.9% | 15.9% | | 11.6% | 10.6% |
| |
|---|
| Median (30 companies) | 5.3% | 4.9% | 2.6% | 3.7% | 2.5% |
|---|
| Hubtown ($HUBTOWN) | 16.3% | 0.8% | 1.6% | 0.4% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | 29.7% | -3.2% | -15.8% | 5.6% | 21.2% |
| Poddar Developers ($PODDARDEV) | 4.1% | 3.9% | 2.6% | 12.9% | 19.1% |
| Lancor Holdings ($LANCORHOL) | 38.2% | 18.0% | 11.6% | 19.5% | 17.7% |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.5% | 10.4% | 11.7% | 6.6% | 14.9% |
| Sobha Developers ($SOBHA) | 12.4% | 18.8% | 16.7% | 14.6% | 12.7% |
| |
|---|
| Median (41 companies) | 9.2% | 5.9% | 4.6% | 5.6% | 6.8% |
|---|
| Hubtown ($HUBTOWN) | 10.7% | 5.6% | 9.3% | 9.6% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| B.L.Kashyap And Sons ($BLKASHYAP) | 3.8x | 8.2x | 5.8x | 12.7x | 40.1x |
| Vipul ($VIPUL) | 50.6x | 0.7x | 3.0x | 10.8x | 26.0x |
| Ansal Properties & Infrastructure ($ANSALAPI) | 3.1x | 12.8x | 11.9x | 11.4x | 16.6x |
| Srs Real Infrastructure ($SRSREAL) | 20.3x | 11.7x | 10.0x | 12.9x | 14.7x |
| |
|---|
| Median (33 companies) | 3.8x | 5.1x | 5.1x | 4.9x | 4.0x |
|---|
| Hubtown ($HUBTOWN) | 5.2x | 7.6x | 3.8x | 5.4x | 4.8x |
