Mahindra Lifespace Developers Net Debt / EBITDA surged on 7.0x from 2.8x to 9.8x in 2016 while Revenue dropped on 23.9%
26-04-2016 • About Mahindra Lifespace Developers (
$MAHLIFE) • By InTwits
Mahindra Lifespace Developers reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mahindra Lifespace Developers has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.3%
- CAPEX is quite volatile: ₹243m in FY2016, ₹494m in FY2015, ₹301m in FY2014, ₹265m in FY2013, ₹68m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.6%
- It operates with high leverage: Net Debt/EBITDA is 9.8x while industry average is 7.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 23.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 18.9 pp from 39.1% to 20.1% in FY2016.
Net Income margin dropped on 13.2 pp from 24.5% to 11.3% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Mahindra Lifespace Developers had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased slightly on 0.65 pp from 3.6% in FY2013 to 2.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.9%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2015 at 4.5%.
Return on investment
The company operates at low ROIC (4.6%) and ROE (6.1%). ROIC dropped on 10.4 pp from 14.9% to 4.6% in FY2016. ROE dropped on 13.3 pp from 19.5% to 6.1% in FY2016.
Leverage (Debt)
Debt level is 9.8x Net Debt / EBITDA and 10.8x Debt / EBITDA. Net Debt / EBITDA surged on 7.0x from 2.8x to 9.8x in FY2016. Debt surged on 45.3% while cash surged on 154%.
Mahindra Lifespace Developers has short term refinancing risk: cash is only 32.9% of short term debt.
Management team
Mahindra Lifespace Developers's CEO is Anita Arjundas. Anita Arjundas has 11 years tenure with the company.
Financial and operational results
Mahindra Lifespace Developers ($MAHLIFE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,013 | 7,383 | 7,053 | 10,861 | 8,262 | -23.9% |
| EBITDA | 1,916 | 2,427 | 1,714 | 4,243 | 1,664 | -60.8% |
| Net Income | 1,191 | 1,414 | 1,006 | 2,662 | 931 | -65.0% |
Balance Sheet
|
|---|
| Cash | 1,323 | 1,228 | 571 | 672 | 1,706 | 154.1% |
| Short Term Debt | 136 | 2,033 | 505 | 1,204 | 5,187 | 330.6% |
| Long Term Debt | 4,916 | 5,749 | 11,972 | 11,171 | 12,797 | 14.6% |
Cash flow
|
|---|
| Capex | 68 | 265 | 301 | 494 | 243 | -50.8% |
Ratios
|
|---|
| Revenue growth | 14.6% | 5.3% | -4.5% | 54.0% | -23.9% | |
| EBITDA growth | 8.4% | 26.7% | -29.4% | 147.5% | -60.8% | |
|
|---|
| EBITDA Margin | 27.3% | 32.9% | 24.3% | 39.1% | 20.1% | -18.9% |
| Net Income Margin | 17.0% | 19.1% | 14.3% | 24.5% | 11.3% | -13.2% |
| CAPEX, % of revenue | 1.0% | 3.6% | 4.3% | 4.5% | 2.9% | -1.6% |
|
|---|
| ROIC | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% | -10.4% |
| ROE | 10.7% | 11.5% | 7.9% | 19.5% | 6.1% | -13.3% |
| Net Debt/EBITDA | 1.9x | 2.7x | 6.9x | 2.8x | 9.8x | 7.0x |
Peers in Realty
Below we provide Mahindra Lifespace Developers benchmarking against other companies in Realty 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sspdl ($SSPDL) | 16.2% | -11.8% | -43.4% | 326.1% | - |
| Orbit Corporation ($ORBITCORP) | -4.2% | -21.9% | -88.0% | 275.1% | - |
| Ajmera Realty & Infra India ($AJMERA) | 21.3% | -61.7% | -1.8% | 109.9% | - |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | 70.6% | 34.7% | 13.7% | 56.3% | - |
| |
|---|
| Median (34 companies) | -1.6% | 3.6% | -1.8% | 11.4% | 177.3% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | - | 5.3% | -4.5% | 54.0% | -23.9% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | - |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | - |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | - |
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | - |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | - |
| |
|---|
| Median (43 companies) | 19.4% | 13.4% | 19.8% | 19.4% | 23.8% |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 27.3% | 32.9% | 24.3% | 39.1% | 20.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | - |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | - |
| |
|---|
| Median (30 companies) | 4.9% | 2.3% | 3.5% | 2.3% | - |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 1.0% | 3.6% | 4.3% | 4.5% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | - |
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | - |
| Lancor Holdings ($LANCORHOL) | 18.0% | 11.6% | 19.5% | 17.7% | - |
| Sobha Developers ($SOBHA) | 18.8% | 16.7% | 14.6% | 12.7% | - |
| Arihant Superstructures ($ASL) | 12.2% | 4.9% | 10.6% | 12.0% | - |
| |
|---|
| Median (50 companies) | 5.7% | 4.6% | 5.6% | 6.8% | - |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | - |
| B.L.Kashyap And Sons ($BLKASHYAP) | 8.2x | 5.8x | 12.7x | 40.1x | - |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | - |
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | - |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| |
|---|
| Median (37 companies) | 5.3x | 5.1x | 4.9x | 4.0x | 0.0x |
|---|
| Mahindra Lifespace Developers ($MAHLIFE) | 1.9x | 2.7x | 6.9x | 2.8x | 9.8x |
