Ramky Infrastructure revenue dropped on 33.6% in 2015 and EBITDA Margin showed almost no change

31-05-2015 • About Ramky Infrastructure ($RAMKY) • By InTwits

Ramky Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Ramky Infrastructure is a company in decline: FY2015 revenue growth was -33.6%, 5 years revenue CAGR was -3.8%
The company operates at negative EBITDA Margin: -9.2%
EBITDA Margin is quite volatile: -9.2% in FY2015, -9.6% in FY2014, 14.7% in FY2013, 15.5% in FY2012, 14.0% in FY2011
Ramky Infrastructure has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's in pair with industry average of 11.5%.
CAPEX is quite volatile: 211 in FY2015, 1,941 in FY2014, 4,346 in FY2013, 4,084 in FY2012, 4,033 in FY2011
The company has unprofitable business model: ROIC is at -5.0%

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Ramky Infrastructure ($RAMKY) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	31,469	38,477	36,551	22,698	15,061	-33.6%
EBITDA	4,414	5,950	5,388	-2,176	-1,382
Net Income	2,061	2,441	1,513	-4,149	-4,830
Balance Sheet
Cash	1,846	693	732	475	1,014	113.7%
Short Term Debt	5,138	8,855	10,264	13,807	15,587	12.9%
Long Term Debt	6,159	10,511	15,423	17,736	20,268	14.3%
Cash flow
Capex	4,033	4,084	4,346	1,941	211	-89.2%
Ratios
Revenue growth	72.6%	22.3%	-5.0%	-37.9%	-33.6%
EBITDA growth	80.9%	34.8%	-9.4%	-140.4%	-36.5%
EBITDA Margin	14.0%	15.5%	14.7%	-9.6%	-9.2%	0.4%
Net Income Margin	6.6%	6.3%	4.1%	-18.3%	-32.1%	-13.8%
CAPEX, % of revenue	12.8%	10.6%	11.9%	8.6%	1.4%	-7.2%
ROIC	20.2%	18.9%	12.2%	-6.2%	-5.0%	1.1%
ROE	25.5%	21.0%	10.7%	-29.7%	-47.5%	-17.8%
Net Debt/EBITDA	2.1x	3.1x	4.6x			0.0x

Revenue and profitability

Ramky Infrastructure's Revenue dropped on 33.6% in FY2015. EBITDA Margin showed almost no change in FY2015.

Net Income marign dropped on 13.8 pp from -18.3% to -32.1% in FY2015.

Capital expenditures (CAPEX) and working capital investments

Ramky Infrastructure's CAPEX/Revenue was 1.4% in FY2015. CAPEX/Revenue decreased on 9.2 pp from 10.6% in FY2012 to 1.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 7.3%.

Return on investment

The company operates at negative ROIC (-5.03%) and ROE (-47.48%). ROIC increased slightly on 1.1 pp from -6.2% to -5.0% in FY2015. ROE dropped on 17.8 pp from -29.7% to -47.5% in FY2015.

Leverage (Debt)

Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 13.7% in FY2015 while cash jumped on 114% in FY2015.

Appendix 1: Peers in Construction & Engineering

Below you can find Ramky Infrastructure benchmarking vs. other companies in Construction & Engineering 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
Thirthankar Infra ($THIRINFRA)					258.2%
Welspun Projects ($WELPROJ)		41.2%	-8.9%	-20.7%	239.1%
Mukand Engineers ($MUKANDENGG)		-14.3%	16.7%	12.4%	63.0%
Atlanta ($ATLANTA)		-47.6%	115.1%	28.1%	50.2%
Spml Infra ($SPMLINFRA)		-17.1%	19.3%	6.6%	35.0%
Median (29 companies)	-22.3%	8.7%	6.9%	7.1%	1.0%
Ramky Infrastructure ($RAMKY)		22.3%	-5.0%	-37.9%	-33.6%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Madhucon Projects ($MADHUCON)	11.6%	8.4%	31.9%	22.1%	32.1%
Jaiprakash Associates ($JPASSOCIAT)	44.0%	36.9%	35.9%	32.4%	31.5%
Arss Infrastructure Projects ($ARSSINFRA)	21.8%	14.0%	13.9%	22.0%	31.3%
Reliance Industrial Infrastructure ($RIIL)					30.8%
Shristi Infrastructure Development Corporation ($SHRISTI)	28.0%	27.2%	30.0%	30.0%	29.8%
Median (32 companies)	12.0%	11.9%	11.2%	10.7%	10.4%
Ramky Infrastructure ($RAMKY)	14.0%	15.5%	14.7%	-9.6%	-9.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Madhucon Projects ($MADHUCON)	149.8%	234.5%	155.1%	76.0%	67.4%
Shristi Infrastructure Development Corporation ($SHRISTI)	6.8%	0.0%	11.2%	14.1%	40.8%
Jaiprakash Associates ($JPASSOCIAT)	114.7%	97.0%	65.5%	45.0%	31.6%
Man Infraconstruction ($MANINFRA)	11.5%	7.8%	1.6%	25.0%	18.6%
Welspun Projects ($WELPROJ)	1.5%	0.4%		0.6%	17.3%
Median (21 companies)	5.5%	7.3%	6.6%	4.0%	3.2%
Ramky Infrastructure ($RAMKY)	12.8%	10.6%	11.9%	8.6%	1.4%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Skipper ($SKIPPER)	10.6%	10.4%	13.5%	14.7%	27.4%
Voltas ($VOLTAS)	32.9%	19.6%	11.7%	11.8%	19.3%
Coromandel Engineering Company ($COROENGG)	10.4%	-21.9%	3.4%	-0.3%	15.0%
Mbl Infrastructures ($MBLINFRA)	24.3%	21.3%	13.4%	14.0%	13.6%
Simplex Infrastructures ($SIMPLEXINF)	12.3%	10.7%	8.7%	8.9%	10.7%
Median (38 companies)	10.5%	8.6%	7.1%	6.3%	6.8%
Ramky Infrastructure ($RAMKY)	20.2%	18.9%	12.2%	-6.2%	-5.0%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Mcnally Bharat Engineering Company ($MBECL)	2.4x	4.3x	7.0x	7.6x	28.3x
Jaiprakash Associates ($JPASSOCIAT)	7.6x	9.2x	8.9x	11.0x	11.9x
Madhucon Projects ($MADHUCON)	40.1x	96.8x	19.0x	16.4x	9.8x
Shristi Infrastructure Development Corporation ($SHRISTI)	7.8x	11.8x	8.6x	7.9x	9.4x
Hindustan Construction Co ($HCC)	10.0x	18.8x	20.3x	12.3x	9.3x
Median (28 companies)	3.7x	4.7x	5.7x	6.4x	3.1x

Ramky Infrastructure stock price chart

Ramky Infrastructure financials

mln.	FY2010	FY2011	FY2012

Revenue	18,238	31,469	38,477
EBITDA	2,440	4,414	5,950
Net income	1,274	2,061	2,441
CAPEX	200.2	4,033	4,084
Debt	10,119	11,296	19,367
Cash	3,499	1,846	692.9

About Ramky Infrastructure

Ramky Infrastructure Limited, together with its subsidiaries, provides integrated construction, infrastructure development, and management services primarily in India. The company operates through Construction and Developer divisions. The Construction division undertakes water and waste water projects, such as water treatment plants, water transmission and distribution systems, elevated and ground level service reservoirs, sewage treatment plants, common effluent treatment plants, tertiary treatment plants, underground drainage systems, and lake restorations; and irrigation projects, including cross-drainage works, lift irrigation projects, dams, and barrages. This division is also involved in industrial construction projects comprising industrial parks and SEZs; transportation projects, such as expressways, highways, bridges, flyovers, and dedicated service corridors; commercial, residential, public, institutional, corporate, and mass housing buildings, as well as related infrastructure and facilities, including hospitals and shopping malls; and power transmission and distribution projects comprising electricity transmission networks, substation feeder lines, and low tension distribution lines. The Developer division undertakes various development projects, including industrial parks, transportation, integrated townships, and energy projects on a public private partnership basis with the government. In addition, the company provides consultancy services in various areas, such as infrastructure development, waste management, environment, and property development. It also has operations in Gabon, West Africa, and the United Arab Emirates. Ramky Infrastructure Limited was founded in 1994 and is based in Hyderabad, India.