Sayaji Hotels revenue dropped on 63.4% in 2015 while EBITDA Margin increased on 2.5 pp from 17.0% to 19.5%
31-05-2015 • About Sayaji Hotels (
$SAYAJIHOTL) • By InTwits
Sayaji Hotels reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sayaji Hotels is a company in decline: FY2015 revenue growth was -63.4%, 5 years revenue CAGR was -2.5%
- Sayaji Hotels has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.3%. At the same time it's a lot of higher than industry average of 13.9%.
- CAPEX is quite volatile: 433 in FY2015, 483 in FY2014, 527 in FY2013, 458 in FY2012, 153 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sayaji Hotels ($SAYAJIHOTL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,050 | 2,423 | 3,017 | 3,905 | 1,428 | -63.4% |
| EBITDA | 433 | 532 | 938 | 663 | 279 | -57.9% |
| Net Income | 46 | 57 | -387 | 138 | 30 | -78.3% |
Balance Sheet
|
|---|
| Cash | 22 | 13 | 64 | 101 | 10 | -90.1% |
| Short Term Debt | 632 | 526 | 497 | 396 | 305 | -23.0% |
| Long Term Debt | 961 | 964 | 1,112 | 774 | 613 | -20.8% |
Cash flow
|
|---|
| Capex | 153 | 458 | 527 | 483 | 433 | -10.3% |
Ratios
|
|---|
| Revenue growth | 26.3% | 18.2% | 24.5% | 29.4% | -63.4% | |
| EBITDA growth | 41.7% | 22.7% | 76.4% | -29.3% | -57.9% | |
| EBITDA Margin | 21.1% | 21.9% | 31.1% | 17.0% | 19.5% | 2.5% |
| Net Income Margin | 2.2% | 2.4% | -12.8% | 3.5% | 2.1% | -1.4% |
| CAPEX, % of revenue | 7.5% | 18.9% | 17.5% | 12.4% | 30.3% | 18.0% |
| ROIC | 10.2% | 13.1% | 9.4% | 14.2% | 1.3% | -12.9% |
| ROE | 5.4% | 5.1% | -40.0% | 14.7% | 2.8% | -11.9% |
| Net Debt/EBITDA | 3.6x | 2.8x | 1.6x | 1.6x | 3.3x | 1.6x |
Revenue and profitability
Sayaji Hotels's Revenue dropped on 63.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 17.0% to 19.5% in FY2015.
Net Income marign decreased slightly on 1.4 pp from 3.5% to 2.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sayaji Hotels's CAPEX/Revenue was 30.3% in FY2015. The company showed fast CAPEX/Revenue growth of 11.4 pp from 18.9% in FY2012 to 30.3% in FY2015. Average CAPEX/Revenue for the last three years was 20.1%.Sayaji Hotels has spent a lot to CAPEX (155% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (1.31%) and ROE (2.82%). ROIC dropped on 12.9 pp from 14.2% to 1.3% in FY2015. ROE dropped on 11.9 pp from 14.7% to 2.8% in FY2015.
Leverage (Debt)
Debt level is 3.3x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from 1.6x to 3.3x in FY2015. Debt dropped on 21.6% in FY2015 while cash dropped on 90.1% in FY2015.
Valuation
Sayaji Hotels's trades at EV/EBITDA 6.7x and P/E 32.3x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Hotels
Below we provide Sayaji Hotels benchmarking against other companies in Hotels 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 |
|---|
| Asian Hotels (West) ($AHLWEST) | | 0.8% | -0.2% | 3.1% | 96.5% |
| Sterling Holiday Resorts (India) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
| Royale Manor Hotels & Industries ($RAYALEMA) | | 0.9% | 2.2% | 5.5% | 18.9% |
| The Byke Hospitality ($THEBYKE) | | 47.6% | 105.7% | 54.3% | 16.5% |
| Eih ($EIHOTEL) | | 12.4% | 4.4% | 5.3% | 7.9% |
| |
|---|
| Median (14 companies) | -45.1% | 14.9% | 8.6% | 5.5% | 4.1% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | | 18.2% | 24.5% | 29.4% | -63.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Hotels ($JINDHOT) | | | | | 37.6% |
| Benares Hotels ($BENARAS) | | | | | 33.6% |
| Fomento Resorts & Hotels ($FOMEHOT) | | | | | 27.9% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | | | | | 25.9% |
| Asian Hotels (East) ($AHLEAST) | 30.8% | 31.5% | 23.7% | 21.8% | 23.5% |
| |
|---|
| Median (19 companies) | 25.3% | 21.7% | 22.6% | 21.0% | 20.5% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 21.1% | 21.9% | 31.1% | 17.0% | 19.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | 36.1% |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.4% | 26.0% | 26.5% | 15.4% | 18.0% |
| Eih ($EIHOTEL) | 18.9% | 13.6% | 12.0% | 7.1% | 9.0% |
| Oriental Hotels ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| The Byke Hospitality ($THEBYKE) | 76.4% | 33.3% | 15.7% | 5.8% | 4.9% |
| |
|---|
| Median (10 companies) | 27.3% | 30.8% | 22.1% | 8.8% | 4.8% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 7.5% | 18.9% | 17.5% | 12.4% | 30.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | | | | | 15.9% |
| Eih ($EIHOTEL) | 4.5% | 5.5% | 4.5% | 5.8% | 6.3% |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.1% | 13.4% | 22.2% | 16.3% | 6.3% |
| Oriental Hotels ($ORIENTHOT) | 8.1% | 6.4% | 4.3% | 2.7% | 3.8% |
| |
|---|
| Median (27 companies) | 7.6% | 5.4% | 4.7% | 2.8% | 3.2% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 10.2% | 13.1% | 9.4% | 14.2% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x |
| Asian Hotels (North) ($ASIANHOTNR) | 9.1x | 28.4x | 11.0x | 15.4x | 24.8x |
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | 7.1x |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| Tgb Banquets And Hotels ($TGBHOTELS) | 4.6x | 3.7x | 3.0x | 2.7x | 4.0x |
| |
|---|
| Median (18 companies) | 1.8x | 1.8x | 2.3x | 0.9x | 0.1x |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 3.6x | 2.8x | 1.6x | 1.6x | 3.3x |
