Vipul CAPEX surged on 159% in 2015 while Revenue dropped on 10.5%
30-05-2015 • About Vipul (
$VIPUL) • By InTwits
Vipul reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vipul is a company in decline: FY2015 revenue growth was -10.5%, 5 years revenue CAGR was -2.6%
- EBITDA Margin is quite volatile: 4.4% in FY2015, 3.9% in FY2014, 9.1% in FY2013, 8.8% in FY2012, 0.6% in FY2011
- Vipul has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 221 in FY2015, 85.1 in FY2014, 80.1 in FY2013, 213 in FY2012, 136 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 26.0x while industry average is 7.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vipul ($VIPUL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,843 | 4,267 | 4,133 | 2,615 | 2,340 | -10.5% |
| EBITDA | 22 | 374 | 377 | 103 | 103 | -0.7% |
| Net Income | 253 | 190 | 130 | -79 | -112 | |
Balance Sheet
|
|---|
| Cash | 197 | 379 | 299 | 306 | 321 | 4.8% |
| Short Term Debt | 353 | 353 | 1,111 | 1,278 | 1,515 | 18.6% |
| Long Term Debt | 976 | 286 | 311 | 139 | 1,475 | 963.7% |
Cash flow
|
|---|
| Capex | 136 | 213 | 80 | 85 | 221 | 159.4% |
Ratios
|
|---|
| Revenue growth | 44.0% | 11.0% | -3.1% | -36.7% | -10.5% | |
| EBITDA growth | -91.0% | 1,572.1% | 0.9% | -72.6% | -0.7% | |
| EBITDA Margin | 0.6% | 8.8% | 9.1% | 3.9% | 4.4% | 0.4% |
| Net Income Margin | 6.6% | 4.5% | 3.1% | -3.0% | -4.8% | -1.8% |
| CAPEX, % of revenue | 3.5% | 5.0% | 1.9% | 3.3% | 9.4% | 6.2% |
| ROIC | 0.1% | 7.4% | 7.3% | 1.7% | 1.5% | -0.2% |
| ROE | 6.9% | 4.9% | 3.3% | -2.0% | -2.9% | -0.9% |
| Net Debt/EBITDA | 50.6x | 0.7x | 3.0x | 10.8x | 26.0x | 15.3x |
Revenue and profitability
Vipul's Revenue dropped on 10.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in FY2015.
Net Income marign decreased slightly on 1.8 pp from -3.0% to -4.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Vipul's CAPEX/Revenue was 9.4% in FY2015. The company's CAPEX/Revenue increased on 4.4 pp from 5.0% in FY2012 to 9.4% in FY2015. For the last three years the average CAPEX/Revenue was 4.9%.The company has spent a lot to CAPEX (215% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (1.47%) and negative ROE (-2.91%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.91 pp from -2.0% to -2.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 26.0x and Debt / EBITDA is 29.2x. Net Debt / EBITDA surged on 15.3x from 10.8x to 26.0x in FY2015. Debt jumped on 111% in FY2015 while cash increased on 4.8% in FY2015.
Appendix 1: Peers in Realty
Below you can find Vipul 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 ($BRIGADE) | | 27.2% | 34.2% | 10.2% | 44.6% |
| |
|---|
| Median (30 companies) | 36.4% | -1.6% | 5.6% | -1.8% | 11.4% |
|---|
| Vipul ($VIPUL) | | 11.0% | -3.1% | -36.7% | -10.5% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Godrej Properties ($GODREJPROP) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
| |
|---|
| Median (1 company) | 28.2% | 24.9% | 33.3% | 28.9% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hubtown ($HUBTOWN) | 51.6% | 53.3% | 72.4% | 67.6% | 82.4% |
| 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% |
| |
|---|
| Median (37 companies) | 24.3% | 20.1% | 18.1% | 20.1% | 23.2% |
|---|
| Vipul ($VIPUL) | 0.6% | 8.8% | 9.1% | 3.9% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prozone Intu Properties ($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) | 5.5% | 4.7% | 2.6% | 3.7% | 2.3% |
|---|
| Vipul ($VIPUL) | 3.5% | 5.0% | 1.9% | 3.3% | 9.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ahluwalia Contracts (India) ($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) | 9.4% | 5.7% | 4.6% | 5.7% | 6.8% |
|---|
| Vipul ($VIPUL) | 0.1% | 7.4% | 7.3% | 1.7% | 1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| D B Realty ($DBREALTY) | 1.1x | 13.2x | 135.4x | 14.0x | 54.8x |
| B.L.Kashyap And Sons ($BLKASHYAP) | 3.8x | 8.2x | 5.8x | 12.7x | 40.1x |
| Ansal Properties & Infrastructure ($ANSALAPI) | 3.1x | 12.8x | 11.9x | 11.4x | 16.6x |
| Srs Real Infrastructure ($SRSREAL) | 20.3x | 11.7x | 10.0x | 12.9x | 14.7x |
| Prozone Intu Properties ($PROZONINTU) | | | 8.6x | 13.0x | 11.9x |
| |
|---|
| Median (33 companies) | 3.8x | 5.3x | 5.1x | 4.9x | 4.0x |
|---|
| Vipul ($VIPUL) | 50.6x | 0.7x | 3.0x | 10.8x | 26.0x |
