Lic Housing Finance reports 19.5% Net Income growth in 2016 while 1.4 pp EBITDA Margin decline from 96.4% to 95.0%
18-04-2016 • About Lic Housing Finance (
$LICHSGFIN) • By InTwits
Lic Housing Finance reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lic Housing Finance is a fast growth stock: FY2016 revenue growth was 15.5%, 5 year revenue CAGR was 20.7% at FY2016 ROIC
- Lic Housing Finance has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- It operates with high leverage: Net Debt/EBITDA is 9.3x while industry average is 8.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Lic Housing Finance's Revenue jumped on 15.5%. Revenue decline was accelerating on average at -3.3 pp per annum in the last 5 years. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 96.4% to 95.0% in FY2016. During the last 5 years EBITDA Margin topped in FY2015 at 96.4%.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.18% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.14%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 0.081% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 9.3x and Debt / EBITDA is 9.7x. Net Debt / EBITDA increased on 0.1x from 9.3x to 9.3x in FY2016. Debt surged on 15.5% while cash surged on 33.5%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2014 at 9.0x and was growing since that time.
Lic Housing Finance has short term refinancing risk: cash is only 15.1% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 11.4x and P/E 14.7x while industy averages are 17.8x and 21.9x.
Management team
Sunita Sharma is a Lic Housing Finance's CEO. Sunita Sharma has spent 6 years with the company. Lic Housing Finance's CFO P Narayanan has spent 5 years with the company.
Financial and operational results
Lic Housing Finance ($LICHSGFIN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 62,446 | 77,348 | 93,392 | 108,121 | 124,906 | 15.5% |
| EBITDA | 58,338 | 73,389 | 89,823 | 104,224 | 118,687 | 13.9% |
| Net Income | 9,199 | 10,475 | 13,182 | 13,956 | 16,677 | 19.5% |
Balance Sheet
|
|---|
| Cash | 15,587 | 14,165 | 30,690 | 29,870 | 39,871 | 33.5% |
| Short Term Debt | 112,959 | 143,830 | 163,943 | 188,849 | 263,608 | 39.6% |
| Long Term Debt | 461,113 | 562,679 | 677,123 | 805,186 | 884,245 | 9.8% |
Cash flow
|
|---|
| Capex | 360 | 78 | 76 | 185 | 223 | 20.3% |
Ratios
|
|---|
| Revenue growth | 28.1% | 23.9% | 20.7% | 15.8% | 15.5% | |
| EBITDA growth | 32.8% | 25.8% | 22.4% | 16.0% | 13.9% | |
|
|---|
| EBITDA Margin | 93.4% | 94.9% | 96.2% | 96.4% | 95.0% | -1.4% |
| Net Income Margin | 14.7% | 13.5% | 14.1% | 12.9% | 13.4% | 0.4% |
| CAPEX, % of revenue | 0.6% | 0.1% | 0.1% | 0.2% | 0.2% | 0.0% |
|
|---|
| ROE | 18.6% | 17.1% | 18.7% | 18.0% | 19.5% | 1.5% |
| Net Debt/EBITDA | 9.6x | 9.4x | 9.0x | 9.3x | 9.3x | 0.1x |
Peers in Housing Finance
Below you can find Lic Housing Finance benchmarking vs. other companies in Housing Finance 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Can Fin Homes ($CANFINHOME) | 24.0% | 36.9% | 47.2% | 41.4% | - |
| Housing Development Finance Corp ($HDFC) | 17.5% | 18.8% | 13.4% | 18.6% | - |
| Gic Housing Finance ($GICHSGFIN) | 2.6% | 26.1% | 12.8% | 17.2% | - |
| |
|---|
| Median (3 companies) | 17.5% | 26.1% | 13.4% | 18.6% | - |
|---|
| Lic Housing Finance ($LICHSGFIN) | - | 23.9% | 20.7% | 15.8% | 15.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Can Fin Homes ($CANFINHOME) | 92.2% | 91.5% | 92.0% | 92.0% | - |
| Gic Housing Finance ($GICHSGFIN) | 89.0% | 88.2% | 88.7% | 90.9% | - |
| Housing Development Finance Corp ($HDFC) | 57.7% | 59.9% | 61.9% | 59.4% | - |
| |
|---|
| Median (3 companies) | 89.0% | 88.2% | 88.7% | 90.9% | - |
|---|
| Lic Housing Finance ($LICHSGFIN) | 93.4% | 94.9% | 96.2% | 96.4% | 95.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Housing Development Finance Corp ($HDFC) | 0.5% | 0.5% | 0.6% | 1.3% | - |
| Can Fin Homes ($CANFINHOME) | 0.5% | 1.2% | 0.6% | 0.7% | - |
| Gic Housing Finance ($GICHSGFIN) | 0.4% | 0.3% | 0.1% | 0.1% | - |
| |
|---|
| Median (3 companies) | 0.5% | 0.5% | 0.6% | 0.7% | - |
|---|
| Lic Housing Finance ($LICHSGFIN) | 0.6% | 0.1% | 0.1% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Housing Development Finance Corp ($HDFC) | 4.6% | 4.8% | 4.8% | 4.6% | - |
| Can Fin Homes ($CANFINHOME) | 2.8% | 2.3% | 2.2% | 2.0% | - |
| Gic Housing Finance ($GICHSGFIN) | - | - | - | - | - |
| |
|---|
| Median (3 companies) | 3.7% | 3.5% | 3.5% | 3.3% | - |
|---|
| Lic Housing Finance ($LICHSGFIN) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Can Fin Homes ($CANFINHOME) | 8.7x | 9.8x | 9.9x | 9.8x | - |
| Gic Housing Finance ($GICHSGFIN) | 9.1x | 8.0x | 8.3x | 8.6x | - |
| Housing Development Finance Corp ($HDFC) | 6.5x | 5.9x | 6.2x | 6.3x | - |
| |
|---|
| Median (3 companies) | 8.7x | 8.0x | 8.3x | 8.6x | - |
|---|
| Lic Housing Finance ($LICHSGFIN) | 9.6x | 9.4x | 9.0x | 9.3x | 9.3x |
