Ksk Energy Ventures Net Debt / EBITDA surged on 8.7x from 27.0x to 35.7x in 2015 and Revenue surged on 12.7%
30-05-2015 • About Ksk Energy Ventures (
$KSK) • By InTwits
Ksk Energy Ventures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ksk Energy Ventures doesn't have a profitable business model yet: FY2015 ROIC is 0.9%
- Ksk Energy Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 97.9%. At the same time it's a lot of higher than industry average of 39.4%.
- CAPEX is quite volatile: 13,673 in FY2015, 12,029 in FY2014, 17,719 in FY2013, 31,507 in FY2012, 14,561 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
- It operates with high leverage: Net Debt/EBITDA is 35.7x while industry average is 9.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ksk Energy Ventures ($KSK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,967 | 19,461 | 22,070 | 21,118 | 23,804 | 12.7% |
| EBITDA | 5,163 | 6,792 | 8,296 | 5,541 | 4,951 | -10.6% |
| Net Income | 1,818 | 1,314 | 1,506 | -1,629 | -3,202 | |
Balance Sheet
|
|---|
| Cash | 2,534 | 4,990 | 1,441 | 1,730 | 2,218 | 28.2% |
| Short Term Debt | 18,837 | 35,114 | 23,071 | 34,264 | 20,463 | -40.3% |
| Long Term Debt | 51,148 | 80,544 | 112,689 | 117,080 | 158,492 | 35.4% |
Cash flow
|
|---|
| Capex | 14,561 | 31,507 | 17,719 | 12,029 | 13,673 | 13.7% |
Ratios
|
|---|
| Revenue growth | -62.4% | 77.4% | 13.4% | -4.3% | 12.7% | |
| EBITDA growth | 65.2% | 31.6% | 22.1% | -33.2% | -10.6% | |
| EBITDA Margin | 47.1% | 34.9% | 37.6% | 26.2% | 20.8% | -5.4% |
| Net Income Margin | 16.6% | 6.7% | 6.8% | -7.7% | -13.5% | -5.7% |
| CAPEX, % of revenue | 132.8% | 161.9% | 80.3% | 57.0% | 57.4% | 0.5% |
| ROIC | 4.2% | 3.6% | 3.7% | 1.5% | 0.9% | -0.6% |
| ROE | 6.4% | 4.2% | 4.7% | -5.7% | -10.5% | -4.8% |
| Net Debt/EBITDA | 13.1x | 16.3x | 16.2x | 27.0x | 35.7x | 8.7x |
Revenue and profitability
Ksk Energy Ventures's Revenue surged on 12.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 6.1% to 9.3% in FY2015.
Net Income marign decreased on 5.7 pp from -7.7% to -13.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 57.4% in FY2015. CAPEX/Revenue dropped on 104 pp from 162% in FY2012 to 57.4% in FY2015. For the last three years the average CAPEX/Revenue was 64.9%.The company has spent a lot to CAPEX (276% of EBITDA) to fuel its growth.
Return on investment
The company operates at low but positive ROIC (0.90%) and negative ROE (-10.49%). ROIC decreased slightly on 0.56 pp from 1.5% to 0.90% in FY2015. ROE decreased on 4.8 pp from -5.7% to -10.5% in FY2015.
Leverage (Debt)
Debt level is 35.7x Net Debt / EBITDA and 36.1x Debt / EBITDA. Net Debt / EBITDA surged on 8.7x from 27.0x to 35.7x in FY2015. Debt surged on 18.2% in FY2015 while cash surged on 28.2% in FY2015.
Appendix 1: Peers in Electric Utilities
Below you can find Ksk Energy 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 |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | | 119.2% | 52.2% | 9.0% | 38.1% |
| Adani Power ($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 ($POWERGRID) | | 19.7% | 27.2% | 18.9% | 12.8% |
| |
|---|
| Median (15 companies) | -68.2% | 30.1% | 15.3% | 8.8% | 6.1% |
|---|
| Ksk Energy Ventures ($KSK) | | 77.4% | 13.4% | -4.3% | 12.7% |
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 ($NHPC) | 69.6% | 71.4% | 66.5% | 59.3% | 63.4% |
| Jaiprakash Power Ventures ($JPPOWER) | 88.6% | 91.7% | 70.6% | 60.1% | 63.3% |
| Energy Development Company ($ENERGYDEV) | | | | | 44.3% |
| |
|---|
| Median (16 companies) | 27.9% | 24.4% | 24.7% | 25.0% | 22.3% |
|---|
| Ksk Energy Ventures ($KSK) | 47.1% | 34.9% | 37.6% | 26.2% | 20.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 160.8% | 184.3% | 172.4% | 173.4% | 169.8% |
| Jaiprakash Power Ventures ($JPPOWER) | 590.3% | 378.9% | 341.9% | 229.9% | 113.6% |
| 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 ($NTPC) | 23.9% | 20.2% | 28.9% | 24.1% | 24.2% |
| |
|---|
| Median (13 companies) | 67.4% | 67.4% | 39.8% | 30.3% | 19.3% |
|---|
| Ksk Energy Ventures ($KSK) | 132.8% | 161.9% | 80.3% | 57.0% | 57.4% |
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 ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| |
|---|
| Median (17 companies) | 4.5% | 5.6% | 5.8% | 5.5% | 6.2% |
|---|
| Ksk Energy Ventures ($KSK) | 4.2% | 3.6% | 3.7% | 1.5% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | 13.4x |
| Reliance Infrastructure ($RELINFRA) | 6.1x | 6.2x | 7.3x | 8.4x | 10.9x |
| Orient Green Power Company ($GREENPOWER) | 8.4x | 21.5x | 10.0x | 10.6x | 8.7x |
| |
|---|
| Median (16 companies) | 6.1x | 8.6x | 6.6x | 6.2x | 6.1x |
|---|
| Ksk Energy Ventures ($KSK) | 13.1x | 16.3x | 16.2x | 27.0x | 35.7x |
