Welspun Projects CAPEX jumped on 9,611% in 2015 and Revenue jumped on 239%
30-05-2015 • About Welspun Projects (
$WELPROJ) • By InTwits
Welspun Projects reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Welspun Projects doesn't have a profitable business model yet: FY2015 ROIC is -6.5%
- EBITDA Margin is quite volatile: -0.2% in FY2015, 6.2% in FY2014, 34.0% in FY2013, 16.4% in FY2012, 2.2% in FY2011
- The company has unprofitable business model: ROIC is at -6.5%
- It operates with high leverage: Net Debt/EBITDA is 9.9x while industry average is 4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Welspun Projects ($WELPROJ) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,387 | 3,370 | 3,071 | 2,434 | 8,256 | 239.1% |
| EBITDA | 54 | 552 | 1,044 | 151 | -19 | -112.4% |
| Net Income | -316 | 33 | 59 | -610 | 7 | |
Balance Sheet
|
|---|
| Cash | 491 | 634 | 281 | 107 | 554 | 419.1% |
| Short Term Debt | 917 | 986 | 779 | 698 | 1,411 | 102.0% |
| Long Term Debt | 3,398 | 2,949 | 2,240 | 2,547 | 3,066 | 20.4% |
Cash flow
|
|---|
| Capex | 37 | 13 | | 15 | 1,431 | 9,611.4% |
Ratios
|
|---|
| Revenue growth | -75.3% | 41.2% | -8.9% | -20.7% | 239.1% | |
| EBITDA growth | -85.7% | 929.4% | 89.2% | -85.6% | -112.4% | |
| EBITDA Margin | 2.2% | 16.4% | 34.0% | 6.2% | -0.2% | -6.4% |
| Net Income Margin | -13.2% | 1.0% | 1.9% | -25.1% | 0.1% | 25.1% |
| CAPEX, % of revenue | 1.5% | 0.4% | | 0.6% | 17.3% | 16.7% |
| ROIC | -2.4% | 3.4% | 4.1% | -2.5% | -6.5% | -4.0% |
| ROE | -7.6% | 0.6% | 1.1% | -12.5% | 0.1% | 12.5% |
| Net Debt/EBITDA | 71.3x | 6.0x | 2.6x | 20.8x | | -20.8x |
Revenue and profitability
Welspun Projects's Revenue jumped on 239% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 11.9% to 10.1% in FY2015.
Net Income marign jumped on 25.1 pp from -25.1% to 0.082% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 17.3% in FY2015. Welspun Projects showed fast CAPEX/Revenue growth of 17.0 pp from 0.38% in FY2012 to 17.3% in FY2015.
Return on investment
The company operates at negative ROIC (-6.49%) and low but positive ROE (0.07%). ROIC decreased on 4.0 pp from -2.5% to -6.5% in FY2015. ROE surged on 12.5 pp from -12.5% to 0.068% in FY2015.
Leverage (Debt)
Debt level is 9.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 20.8x from 20.8x to in FY2015. Debt surged on 37.9% in FY2015 while cash jumped on 419% in FY2015.
Appendix 1: Peers in Construction & Engineering
Below we provide Welspun Projects benchmarking against other companies in Construction & Engineering 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 |
|---|
| Madhucon Projects ($MADHUCON) | -72.3% | -19.5% | 61.7% | 81.2% | |
| C & C Constructions ($CANDC) | 7.1% | -11.6% | -12.2% | 31.7% | |
| Mbl Infrastructures ($MBLINFRA) | | 26.3% | 7.1% | 30.3% | 11.1% |
| Atlanta ($ATLANTA) | | -47.6% | 115.1% | 28.1% | 50.2% |
| Arss Infrastructure Projects ($ARSSINFRA) | | -5.3% | -34.8% | 17.8% | -27.8% |
| |
|---|
| Median (31 companies) | -20.9% | 8.7% | 6.9% | 7.1% | 6.6% |
|---|
| Welspun Projects ($WELPROJ) | | 41.2% | -8.9% | -20.7% | 239.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arss Infrastructure Projects ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | 31.3% |
| Reliance Industrial Infrastructure ($RIIL) | | | | | 30.8% |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 28.0% | 27.2% | 30.0% | 30.0% | 29.8% |
| Atlanta ($ATLANTA) | 44.1% | 28.5% | 34.6% | 30.8% | 21.4% |
| Garnet Construction ($GARNET) | | | | | 20.7% |
| |
|---|
| Median (26 companies) | 12.4% | 11.9% | 11.2% | 10.7% | 10.7% |
|---|
| Welspun Projects ($WELPROJ) | 2.2% | 16.4% | 34.0% | 6.2% | -0.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Madhucon Projects ($MADHUCON) | 149.8% | 234.5% | 155.1% | 76.0% | |
| Jaiprakash Associates ($JPASSOCIAT) | 114.7% | 97.0% | 65.5% | 45.0% | |
| Supreme Infrastructure India ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | |
| Man Infraconstruction ($MANINFRA) | 11.5% | 7.8% | 1.6% | 25.0% | 18.6% |
| Jmc Projects (India) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | 3.2% |
| |
|---|
| Median (23 companies) | 6.1% | 7.7% | 6.6% | 6.6% | 3.1% |
|---|
| Welspun Projects ($WELPROJ) | 1.5% | 0.4% | | 0.6% | 17.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipper ($SKIPPER) | 10.6% | 10.4% | 13.5% | 14.7% | 27.4% |
| Mbl Infrastructures ($MBLINFRA) | 24.3% | 21.3% | 13.4% | 14.0% | 13.6% |
| Voltas ($VOLTAS) | 32.9% | 19.6% | 11.7% | 11.8% | 19.3% |
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | |
| Reliance Industrial Infrastructure ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.7% | 8.6% | 7.5% | 6.3% | 6.9% |
|---|
| Welspun Projects ($WELPROJ) | -2.4% | 3.4% | 4.1% | -2.5% | -6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel Engineering Company ($COROENGG) | 7.1x | | 14.4x | 54.6x | 3.2x |
| Punj Lloyd ($PUNJLLOYD) | 6.5x | 6.7x | 6.8x | 16.5x | |
| Madhucon Projects ($MADHUCON) | 40.1x | 96.8x | 19.0x | 16.4x | |
| Hindustan Construction Co ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | 9.3x |
| Jaiprakash Associates ($JPASSOCIAT) | 7.6x | 9.2x | 8.9x | 11.0x | |
| |
|---|
| Median (32 companies) | 3.7x | 4.5x | 5.7x | 5.9x | 3.0x |
|---|
| Welspun Projects ($WELPROJ) | 71.3x | 6.0x | 2.6x | 20.8x | |
