Country Club (India) reports 55.6% Net Income growth and almost no change in EBITDA Margin of 23.7%
01-06-2015 • About Country Club (India) (
$COUNCLB) • By InTwits
Country Club (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Country Club (India) has high CAPEX intensity: 5 year average CAPEX/Revenue was 45.4%. At the same time it's a lot of higher than industry average of 12.1%.
- CAPEX is quite volatile: 118 in FY2015, 179 in FY2014, 71.8 in FY2013, 193 in FY2012, 147 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Country Club (India) ($COUNCLB) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,221 | 3,692 | 4,714 | 4,958 | 4,972 | 0.3% |
| EBITDA | 1,023 | 1,261 | 1,521 | 1,199 | 1,179 | -1.7% |
| Net Income | 421 | 496 | 561 | 172 | 268 | 55.6% |
Balance Sheet
|
|---|
| Cash | 148 | 287 | 229 | 241 | 454 | 88.6% |
| Short Term Debt | 235 | 451 | 674 | 1,027 | 515 | -49.8% |
| Long Term Debt | 1,318 | 2,388 | 2,326 | 3,002 | 4,014 | 33.7% |
Cash flow
|
|---|
| Capex | 1,734 | 2,166 | 1,726 | 2,458 | 1,415 | -42.4% |
Ratios
|
|---|
| Revenue growth | -45.1% | 14.6% | 27.7% | 5.2% | 0.3% | |
| EBITDA growth | 21.1% | 23.3% | 20.6% | -21.2% | -1.7% | |
| EBITDA Margin | 31.8% | 34.2% | 32.3% | 24.2% | 23.7% | -0.5% |
| Net Income Margin | 13.1% | 13.4% | 11.9% | 3.5% | 5.4% | 1.9% |
| CAPEX, % of revenue | 53.8% | 58.7% | 36.6% | 49.6% | 28.5% | -21.1% |
| ROIC | 7.4% | 8.8% | 8.9% | 5.4% | 5.3% | -0.2% |
| ROE | 5.3% | 6.0% | 6.2% | 1.8% | 2.7% | 0.9% |
| Net Debt/EBITDA | 1.4x | 2.0x | 1.8x | 3.2x | 3.5x | 0.3x |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 3.2% to -0.99% in FY2015.
Net Income marign increased slightly on 1.9 pp from 3.5% to 5.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 28.5% in FY2015. Country Club (India)'s CAPEX/Revenue dropped on 30.2 pp from 58.7% in FY2012 to 28.5% in FY2015. It's average CAPEX/Revenue for the last three years was 38.2%.The company investments to CAPEX were large: 120% of EBITDA.
Return on investment
The company operates at low ROIC (5.25%) and ROE (2.69%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.88 pp from 1.8% to 2.7% in FY2015.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 3.2x to 3.5x in FY2015. Debt surged on 12.4% in FY2015 while cash surged on 88.6% in FY2015.
Valuation
Country Club (India)'s trades at EV/EBITDA 4.9x and P/E 6.4x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Hotels
Below we provide Country Club (India) 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 ($EIHOTEL) | | 12.4% | 4.4% | 5.3% | 7.9% |
| |
|---|
| Median (15 companies) | | 15.5% | 8.6% | 5.9% | 3.4% |
|---|
| Country Club (India) ($COUNCLB) | | 14.6% | 27.7% | 5.2% | 0.3% |
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) ($AHLEAST) | 30.8% | 31.5% | 23.7% | 21.8% | 23.5% |
| |
|---|
| Median (20 companies) | 25.3% | 21.7% | 22.6% | 20.0% | 20.0% |
|---|
| Country Club (India) ($COUNCLB) | 31.8% | 34.2% | 32.3% | 24.2% | 23.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | 36.1% |
| Sayaji Hotels ($SAYAJIHOTL) | 7.5% | 18.9% | 17.5% | 12.4% | 30.3% |
| 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 ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (11 companies) | 20.4% | 26.0% | 17.6% | 8.8% | 4.9% |
|---|
| Country Club (India) ($COUNCLB) | 53.8% | 58.7% | 36.6% | 49.6% | 28.5% |
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 ($ORIENTHOT) | 8.1% | 6.4% | 4.3% | 2.7% | 3.8% |
| |
|---|
| Median (28 companies) | 7.9% | 5.4% | 4.7% | 2.8% | 2.3% |
|---|
| Country Club (India) ($COUNCLB) | 7.4% | 8.8% | 8.9% | 5.4% | 5.3% |
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 ($TGBHOTELS) | 4.6x | 3.7x | 3.0x | 2.7x | 4.0x |
| |
|---|
| Median (19 companies) | 2.2x | 1.8x | 2.3x | 0.9x | 0.3x |
|---|
| Country Club (India) ($COUNCLB) | 1.4x | 2.0x | 1.8x | 3.2x | 3.5x |
