Jaiprakash Power Ventures EBITDA jumped on 45.5% in 2015 and EBITDA Margin increased on 3.2 pp from 60.1% to 63.3%
30-05-2015 • About Jaiprakash Power Ventures (
$JPPOWER) • By InTwits
Jaiprakash Power Ventures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jaiprakash Power Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 330.9%. At the same time it's a lot of higher than industry average of 39.4%.
- CAPEX is quite volatile: 3,708 in FY2015, 8,866 in FY2014, 10,143 in FY2013, 7,049 in FY2012, 2,306 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 13.4x while industry average is 9.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jaiprakash Power Ventures ($JPPOWER) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,369 | 16,156 | 24,587 | 26,812 | 37,040 | 38.1% |
| SG&A | | | | | 9 | |
| EBITDA | 6,531 | 14,818 | 17,348 | 16,109 | 23,434 | 45.5% |
| Net Income | 1,618 | 4,007 | 3,512 | 329 | 1,511 | 359.8% |
Balance Sheet
|
|---|
| Cash | 9,740 | 2,697 | 2,715 | 5,270 | 6,554 | 24.4% |
| Short Term Debt | 3,282 | 17,383 | 22,480 | 32,283 | 54,615 | 69.2% |
| Long Term Debt | 130,174 | 156,790 | 207,482 | 242,746 | 266,036 | 9.6% |
Cash flow
|
|---|
| Capex | 43,500 | 61,211 | 84,070 | 61,635 | 42,082 | -31.7% |
Ratios
|
|---|
| Revenue growth | -83.8% | 119.2% | 52.2% | 9.0% | 38.1% | |
| EBITDA growth | 7.6% | 126.9% | 17.1% | -7.1% | 45.5% | |
| EBITDA Margin | 88.6% | 91.7% | 70.6% | 60.1% | 63.3% | 3.2% |
| Net Income Margin | 22.0% | 24.8% | 14.3% | 1.2% | 4.1% | 2.9% |
| SG&A, % of revenue | | | | | 0.0% | 0.0% |
| CAPEX, % of revenue | 590.3% | 378.9% | 341.9% | 229.9% | 113.6% | -116.3% |
| ROIC | 3.9% | 6.0% | 6.0% | 4.2% | 4.9% | 0.7% |
| ROE | 3.8% | 7.5% | 5.9% | 0.5% | 2.3% | 1.7% |
| Net Debt/EBITDA | 18.9x | 11.6x | 13.1x | 16.7x | 13.4x | -3.3x |
Revenue and profitability
Jaiprakash Power Ventures's Revenue surged on 38.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased on 2.9 pp from 1.2% to 4.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Jaiprakash Power Ventures's CAPEX/Revenue was 114% in FY2015. The company's CAPEX/Revenue dropped on 265 pp from 379% in FY2012 to 114% in FY2015. For the last three years the average CAPEX/Revenue was 228%.To fuel this fast growth Jaiprakash Power Ventures made large investments to CAPEX (180% of EBITDA).
Return on investment
The company operates at low ROIC (4.91%) and ROE (2.26%). ROIC increased slightly on 0.75 pp from 4.2% to 4.9% in FY2015. ROE increased slightly on 1.7 pp from 0.51% to 2.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.4x and Debt / EBITDA is 13.7x. Net Debt / EBITDA dropped on 3.3x from 16.7x to 13.4x in FY2015. Debt surged on 16.6% in FY2015 while cash surged on 24.4% in FY2015.
Appendix 1: Peers in Electric Utilities
Below you can find Jaiprakash Power 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 ($ADANIPOWER) | | 91.5% | 65.7% | 128.0% | 21.7% |
| Torrent Power ($TORNTPOWER) | | 14.6% | 9.9% | 5.6% | 19.8% |
| Ptc India ($PTC) | | -12.1% | 14.2% | 31.5% | 14.9% |
| Power Grid Corporation Of India ($POWERGRID) | | 19.7% | 27.2% | 18.9% | 12.8% |
| Ksk Energy Ventures ($KSK) | | 77.4% | 13.4% | -4.3% | 12.7% |
| |
|---|
| Median (15 companies) | -68.2% | 30.1% | 14.2% | 8.4% | 6.1% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | | 119.2% | 52.2% | 9.0% | 38.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 85.4% | 83.7% | 85.6% | 84.9% | 85.8% |
| Orient Green Power Company ($GREENPOWER) | 42.7% | 24.4% | 53.3% | 57.8% | 82.8% |
| Nhpc ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% |
| Energy Development Company ($ENERGYDEV) | | | | | 44.3% |
| Gvk Power & Infrastructure ($GVKPIL) | 27.4% | 28.3% | 27.4% | 37.2% | 38.2% |
| |
|---|
| Median (16 companies) | 27.9% | 24.4% | 24.7% | 25.0% | 20.9% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | 63.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | 169.8% |
| Ksk Energy Ventures ($KSK) | 132.8% | 161.9% | 80.3% | 57.0% | 57.4% |
| Nava Bharat Ventures ($NBVENTURES) | 39.1% | 69.0% | 30.5% | 70.6% | 55.3% |
| Gvk Power & Infrastructure ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| Ntpc ($NTPC) | 23.9% | 20.2% | 28.9% | 24.1% | 24.2% |
| |
|---|
| Median (13 companies) | 67.4% | 67.4% | 39.8% | 30.3% | 19.3% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | 113.6% |
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% |
| Torrent Power ($TORNTPOWER) | 20.5% | 19.0% | 7.3% | 4.9% | 8.1% |
| Power Grid Corporation Of India ($POWERGRID) | | 8.3% | 8.8% | 8.4% | 7.7% |
| Tata Power Co ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| |
|---|
| Median (17 companies) | 4.5% | 4.8% | 5.4% | 5.5% | 6.2% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 3.9% | 6.0% | 6.0% | 4.2% | 4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | 35.7x |
| Gvk Power & Infrastructure ($GVKPIL) | 9.6x | 19.1x | 23.9x | 20.1x | 20.2x |
| Lanco Infratech ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | 17.5x |
| Reliance Infrastructure ($RELINFRA) | 6.1x | 6.2x | 7.3x | 8.4x | 10.9x |
| Orient Green Power Company ($GREENPOWER) | 8.4x | 21.5x | 10.0x | 10.6x | 8.7x |
| |
|---|
| Median (16 companies) | 6.1x | 8.6x | 6.6x | 6.2x | 6.1x |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | 13.4x |
