Gmr Infrastructure reports 32.1% CAPEX decline while 3.4% Revenue growth
31-05-2015 • About Gmr Infrastructure (
$GMRINFRA) • By InTwits
Gmr Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gmr Infrastructure doesn't have a profitable business model yet: FY2015 ROIC is 1.0%
- Gmr Infrastructure has high CAPEX intensity: 5 year average CAPEX/Revenue was 88.3%. At the same time it's a lot of higher than industry average of 38.3%.
- CAPEX is quite volatile: 38,051 in FY2015, 56,027 in FY2014, 102,810 in FY2013, 108,133 in FY2012, 69,673 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 17.7x while industry average is 9.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gmr Infrastructure ($GMRINFRA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 63,321 | 77,744 | 98,328 | 105,670 | 109,268 | 3.4% |
| SG&A | | | | | 321 | |
| EBITDA | 24,214 | 16,825 | 25,460 | 26,011 | 25,666 | -1.3% |
| Net Income | -9,296 | -6,033 | 881 | 100 | -27,333 | -27,405.6% |
Balance Sheet
|
|---|
| Cash | 21,076 | 31,855 | 37,831 | 14,943 | 25,205 | 68.7% |
| Short Term Debt | 44,482 | 106,622 | 107,161 | 114,415 | 90,917 | -20.5% |
| Long Term Debt | 167,469 | 254,147 | 316,332 | 335,993 | 387,390 | 15.3% |
Cash flow
|
|---|
| Capex | 69,673 | 108,133 | 102,810 | 56,027 | 38,051 | -32.1% |
Ratios
|
|---|
| Revenue growth | -57.3% | 22.8% | 26.5% | 7.5% | 3.4% | |
| EBITDA growth | 71.3% | -30.5% | 51.3% | 2.2% | -1.3% | |
| EBITDA Margin | 38.2% | 21.6% | 25.9% | 24.6% | 23.5% | -1.1% |
| Net Income Margin | -14.7% | -7.8% | 0.9% | 0.1% | -25.0% | -25.1% |
| SG&A, % of revenue | | | | | 0.3% | 0.3% |
| CAPEX, % of revenue | 110.0% | 139.1% | 104.6% | 53.0% | 34.8% | -18.2% |
| ROIC | 2.5% | 1.8% | 2.8% | 2.0% | 1.0% | -1.0% |
| ROE | -13.0% | -7.9% | 1.2% | 0.1% | -44.6% | -44.7% |
| Net Debt/EBITDA | 7.9x | 19.5x | 15.1x | 16.7x | 17.7x | 0.9x |
Revenue and profitability
Gmr Infrastructure's Revenue increased on 3.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 21.1% to 19.0% in FY2015.
Net Income marign dropped on 25.1 pp from 0.095% to -25.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 34.8%. Gmr Infrastructure showed big decline in CAPEX/Revenue of 104 pp from 139% in FY2012 to 34.8% in FY2015. It's average CAPEX/Revenue for the last three years was 64.1%.Gmr Infrastructure maintained rich investment policy and has spent a lot to CAPEX (148% of EBITDA).
Return on investment
The company operates at low but positive ROIC (1.03%) and negative ROE (-44.60%). ROIC decreased slightly on 0.95 pp from 2.0% to 1.0% in FY2015. ROE dropped on 44.7 pp from 0.15% to -44.6% in FY2015.
Leverage (Debt)
Debt level is 17.7x Net Debt / EBITDA and 18.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 16.7x to 17.7x in FY2015. Debt increased on 6.2% in FY2015 while cash jumped on 68.7% in FY2015.
Appendix 1: Peers in Electric Utilities
Below we provide Gmr Infrastructure benchmarking against other companies in Electric Utilities 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 |
|---|
| 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 ($POWERGRID) | | 19.7% | 27.2% | 18.9% | 12.8% |
| |
|---|
| Median (16 companies) | -79.1% | 32.0% | 14.2% | 8.8% | 7.1% |
|---|
| Gmr Infrastructure ($GMRINFRA) | | 22.8% | 26.5% | 7.5% | 3.4% |
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 ($ENERGYDEV) | | | | | 44.3% |
| |
|---|
| Median (17 companies) | 27.9% | 28.3% | 24.7% | 26.2% | 21.1% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 38.2% | 21.6% | 25.9% | 24.6% | 23.5% |
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% |
| 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 ($GVKPIL) | 76.3% | 139.1% | 136.7% | 109.1% | 52.7% |
| |
|---|
| Median (14 companies) | 67.4% | 67.4% | 39.8% | 30.3% | 20.1% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 110.0% | 139.1% | 104.6% | 53.0% | 34.8% |
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 ($TATAPOWER) | 10.1% | 8.9% | 8.8% | 9.0% | 7.1% |
| |
|---|
| Median (18 companies) | 4.5% | 5.6% | 5.8% | 5.5% | 6.0% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 2.5% | 1.8% | 2.8% | 2.0% | 1.0% |
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 ($LITL) | 9.3x | 16.3x | 12.9x | 19.2x | 17.5x |
| Jaiprakash Power Ventures ($JPPOWER) | 18.9x | 11.6x | 13.1x | 16.7x | 13.4x |
| Reliance Infrastructure ($RELINFRA) | 6.1x | 6.2x | 7.3x | 8.4x | 10.9x |
| |
|---|
| Median (17 companies) | 6.1x | 8.6x | 6.6x | 6.2x | 6.2x |
|---|
| Gmr Infrastructure ($GMRINFRA) | 7.9x | 19.5x | 15.1x | 16.7x | 17.7x |
