Supreme Infrastructure India Net Debt / EBITDA surged on 4.4x from 6.8x to 11.3x in 2015 while EBITDA dropped on 19.5%
03-06-2015 • About Supreme Infrastructure India (
$SUPREMEINF) • By InTwits
Supreme Infrastructure India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Supreme Infrastructure India is a company in decline: FY2015 revenue growth was -29.4%, 5 years revenue CAGR was -4.3%
- EBITDA Margin is expanding: 20.0% in FY2015 vs. 17.5% in FY2014 vs. 13.8% in FY2011
- Supreme Infrastructure India has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.7%. At the same time it's a lot of higher than industry average of 11.6%.
- CAPEX is quite volatile: 8,315 in FY2015, 11,068 in FY2014, 7,251 in FY2013, 8,055 in FY2012, 1,537 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is 11.3x while industry average is 4.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Supreme Infrastructure India ($SUPREMEINF) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,201 | 17,270 | 23,329 | 25,705 | 18,139 | -29.4% |
| EBITDA | 1,270 | 2,560 | 3,644 | 4,498 | 3,620 | -19.5% |
| Net Income | 713 | 791 | 1,002 | 792 | -141 | -117.8% |
Balance Sheet
|
|---|
| Cash | 220 | 410 | 823 | 288 | 1,111 | 285.3% |
| Short Term Debt | 3,538 | 5,947 | 8,939 | 10,835 | 10,470 | -3.4% |
| Long Term Debt | 2,303 | 9,782 | 14,235 | 20,067 | 31,370 | 56.3% |
Cash flow
|
|---|
| Capex | 1,537 | 8,055 | 7,251 | 11,068 | 8,315 | -24.9% |
Ratios
|
|---|
| Revenue growth | -59.2% | 87.7% | 35.1% | 10.2% | -29.4% | |
| EBITDA growth | 34.1% | 101.5% | 42.4% | 23.4% | -19.5% | |
| EBITDA Margin | 13.8% | 14.8% | 15.6% | 17.5% | 20.0% | 2.5% |
| Net Income Margin | 7.7% | 4.6% | 4.3% | 3.1% | -0.8% | -3.9% |
| CAPEX, % of revenue | 16.7% | 46.6% | 31.1% | 43.1% | 45.8% | 2.8% |
| ROIC | 15.0% | 15.4% | 12.4% | 10.6% | 6.2% | -4.4% |
| ROE | 33.0% | 25.2% | 21.1% | 11.8% | -1.8% | -13.6% |
| Net Debt/EBITDA | 4.4x | 6.0x | 6.1x | 6.8x | 11.3x | 4.4x |
Revenue and profitability
Supreme Infrastructure India's Revenue dropped on 29.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 17.5% to 20.0% in FY2015.
Net Income marign decreased on 3.9 pp from 3.1% to -0.78% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Supreme Infrastructure India had CAPEX/Revenue of 45.8%. Supreme Infrastructure India showed small CAPEX/Revenue decline of 0.80 pp from 46.6% in FY2012 to 45.8% in FY2015. For the last three years the average CAPEX/Revenue was 40.0%.The company has spent a lot to CAPEX (230% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (6.22%) and negative ROE (-1.78%). ROIC decreased on 4.4 pp from 10.6% to 6.2% in FY2015. ROE dropped on 13.6 pp from 11.8% to -1.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.3x and Debt / EBITDA is 11.6x. Net Debt / EBITDA jumped on 4.4x from 6.8x to 11.3x in FY2015. Debt surged on 35.4% in FY2015 while cash jumped on 285% in FY2015.
Appendix 1: Peers in Construction & Engineering
Below you can find Supreme Infrastructure India 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 ($SPMLINFRA) | | -17.1% | 19.3% | 6.6% | 35.0% |
| |
|---|
| Median (30 companies) | 7.1% | 8.7% | 6.6% | 6.6% | -0.0% |
|---|
| Supreme Infrastructure India ($SUPREMEINF) | | 87.7% | 35.1% | 10.2% | -29.4% |
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 ($SHRISTI) | 28.0% | 27.2% | 30.0% | 30.0% | 29.8% |
| |
|---|
| Median (33 companies) | 12.0% | 11.9% | 11.2% | 10.2% | 10.4% |
|---|
| Supreme Infrastructure India ($SUPREMEINF) | 13.8% | 14.8% | 15.6% | 17.5% | 20.0% |
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 ($WELPROJ) | 1.5% | 0.4% | | 0.6% | 17.3% |
| |
|---|
| Median (22 companies) | 5.5% | 7.3% | 6.6% | 4.0% | 3.1% |
|---|
| Supreme Infrastructure India ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | 45.8% |
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 ($SIMPLEXINF) | 12.3% | 10.7% | 8.7% | 8.9% | 10.7% |
| |
|---|
| Median (39 companies) | 10.5% | 8.6% | 7.1% | 5.6% | 6.7% |
|---|
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | 6.2% |
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 ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | 9.3x |
| |
|---|
| Median (28 companies) | 3.7x | 4.5x | 5.3x | 5.9x | 3.1x |
|---|
| Supreme Infrastructure India ($SUPREMEINF) | 4.4x | 6.0x | 6.1x | 6.8x | 11.3x |
