Bharti Infratel reports 19.6% Net Income growth in 2016 and 0.71 pp EBITDA Margin growth from 42.9% to 43.6%
26-04-2016 • About Bharti Infratel (
$INFRATEL) • By InTwits
Bharti Infratel reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bharti Infratel has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.5%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: ₹17,154m in FY2016, ₹6,373m in FY2015, ₹4,989m in FY2014, ₹6,250m in FY2013, ₹7,930m in FY2012
- The company has highly profitable business model: ROIC is 14.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Bharti Infratel's Revenue increased on 5.5%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.71 pp from 42.9% to 43.6% in FY2016. EBITDA Margin stuck to a growing trend at 1.8 pp per annum in FY2012-FY2016.
Net Income margin increased on 2.3 pp from 17.1% to 19.4% in FY2016. Net Income margin grew at 3.0 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 17.3%. CAPEX/Revenue increased slightly on 0.93 pp from 16.3% in FY2013 to 17.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 16.5%.
Return on investment
The company operates at good ROIC (14.6%) and ROE (13.5%). ROIC increased slightly on 1.7 pp from 12.9% to 14.6% in FY2016. ROE increased on 2.1 pp from 11.4% to 13.5% in FY2016. ROIC stuck to a growing trend at 2.0 pp per annum in the last 5 years. ROE stuck to a growing trend at 2.1 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.3x. Debt dropped on 33.9% while cash jumped on 7,071%.
Bharti Infratel has no short term refinancing risk: cash is higher than short term debt (324.4%).
Valuation and dividends
The company's trades at EV/EBITDA 12.8x and P/E 28.9x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 21.1x with the industry average at 22.8x.
Management team
Devender Singh Rawat is a the company's CEO. Devender Singh Rawat has spent 10 years with the company. The company's CFO Pankaj Miglani has spent 9 years with the company.
Financial and operational results
Bharti Infratel ($INFRATEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 94,521 | 102,720 | 108,267 | 116,683 | 123,084 | 5.5% |
| EBITDA | 35,343 | 38,302 | 44,001 | 50,041 | 53,660 | 7.2% |
| Net Income | 7,491 | 10,025 | 15,179 | 19,924 | 23,820 | 19.6% |
Balance Sheet
|
|---|
| Cash | 468 | 520 | 1,640 | 285 | 20,437 | 7,070.9% |
| Short Term Debt | 11,117 | 2,935 | 7,579 | 10,159 | 6,299 | -38.0% |
| Long Term Debt | 23,889 | 32,296 | 25,844 | 15,663 | 10,767 | -31.3% |
Cash flow
|
|---|
| Capex | 15,713 | 16,784 | 15,742 | 20,781 | 21,250 | 2.3% |
Ratios
|
|---|
| Revenue growth | 11.1% | 8.7% | 5.4% | 7.8% | 5.5% | |
| EBITDA growth | 13.0% | 8.4% | 14.9% | 13.7% | 7.2% | |
|
|---|
| EBITDA Margin | 37.4% | 37.3% | 40.6% | 42.9% | 43.6% | 0.7% |
| Net Income Margin | 7.9% | 9.8% | 14.0% | 17.1% | 19.4% | 2.3% |
| CAPEX, % of revenue | 16.6% | 16.3% | 14.5% | 17.8% | 17.3% | -0.5% |
|
|---|
| ROIC | 7.3% | 7.9% | 10.3% | 12.9% | 14.6% | 1.7% |
| ROE | 5.3% | 6.3% | 8.6% | 11.4% | 13.5% | 2.1% |
| Net Debt/EBITDA | 1.0x | 0.9x | 0.7x | 0.5x | -0.1x | -0.6x |
Peers in Other Telecom Services
Below you can find Bharti Infratel benchmarking vs. other companies in Other Telecom Services 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 |
|---|
| Gtl ($GTL) | -40.5% | 39.5% | -37.8% | 10.8% | - |
| Onmobile Global ($ONMOBILE) | 18.8% | 13.7% | 19.3% | -2.1% | - |
| |
|---|
| Median (2 companies) | -10.9% | 26.6% | -9.2% | 4.4% | - |
|---|
| Bharti Infratel ($INFRATEL) | - | 8.7% | 5.4% | 7.8% | 5.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Onmobile Global ($ONMOBILE) | 22.3% | 22.2% | 15.4% | 15.9% | - |
| Gtl ($GTL) | 6.2% | 5.8% | 12.3% | -12.5% | - |
| |
|---|
| Median (2 companies) | 14.3% | 14.0% | 13.9% | 1.7% | - |
|---|
| Bharti Infratel ($INFRATEL) | 37.4% | 37.3% | 40.6% | 42.9% | 43.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Onmobile Global ($ONMOBILE) | 15.7% | 8.6% | 24.3% | 2.2% | - |
| Gtl ($GTL) | 3.8% | 2.6% | 2.3% | 1.4% | - |
| |
|---|
| Median (2 companies) | 9.8% | 5.6% | 13.3% | 1.8% | - |
|---|
| Bharti Infratel ($INFRATEL) | 16.6% | 16.3% | 14.5% | 17.8% | 17.3% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Onmobile Global ($ONMOBILE) | 6.3% | 6.4% | -0.3% | -1.2% | - |
| Gtl ($GTL) | - | -0.5% | 1.4% | -10.1% | - |
| |
|---|
| Median (2 companies) | 6.3% | 2.9% | 0.5% | -5.6% | - |
|---|
| Bharti Infratel ($INFRATEL) | 7.3% | 7.9% | 10.3% | 12.9% | 14.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Onmobile Global ($ONMOBILE) | -0.6x | -0.7x | 0.1x | -1.0x | - |
| |
|---|
| Median (1 company) | 17.8x | 13.1x | 8.0x | -1.0x | - |
|---|
| Bharti Infratel ($INFRATEL) | 1.0x | 0.9x | 0.7x | 0.5x | -0.1x |
