Tourism Finance Corporation Of India reports 10.9% Net Income decline in 2016 and 0.54 pp EBITDA Margin growth from 89.2% to 89.7%
16-05-2016 • About Tourism Finance Corporation Of India (
$TFCILTD) • By InTwits
Tourism Finance Corporation Of India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 89.7% in FY2016 vs. 89.2% in FY2015 vs. 90.6% in FY2012
- Tourism Finance Corporation Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has potentially unprofitable business model: ROIC is 4.9%
- It operates with high leverage: Net Debt/EBITDA is 6.0x while industry average is 6.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tourism Finance Corporation Of India's Revenue decreased slightly on 0.51%. During the last 5 years Revenue growth topped in FY2013 at 38.4% and was decelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.54 pp from 89.2% to 89.7% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 88.8% and was growing since that time.
Net Income margin decreased on 3.4 pp from 32.3% to 28.9% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 0.18%. The company's CAPEX/Revenue decreased on 3.2 pp from 3.3% in FY2013 to 0.18% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.16%.
Return on investment
The company operates at low ROIC (4.9%) and ROE (10.8%). ROIC decreased slightly on 0.73 pp from 5.7% to 4.9% in FY2016. ROE decreased on 2.3 pp from 13.1% to 10.8% in FY2016. During FY2012-FY2016 ROE topped in FY2013 at 13.9% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.0x and Debt / EBITDA is 6.0x. Net Debt / EBITDA surged on 0.2x from 5.8x to 6.0x in FY2016. Debt increased on 4.2% while cash jumped on 2,537%. During the last 5 years Net Debt/EBITDA bottomed in FY2014 at 5.2x and was growing since that time.
Tourism Finance Corporation Of India has short term refinancing risk: cash is only 9.6% of short term debt.
Valuation and dividends
Tourism Finance Corporation Of India's trades at EV/EBITDA 8.0x and P/E 6.3x while industy averages are 17.8x and 21.9x.
Financial and operational results
Tourism Finance Corporation Of India ($TFCILTD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,303 | 1,803 | 1,846 | 1,865 | 1,855 | -0.5% |
| EBITDA | 1,180 | 1,606 | 1,639 | 1,663 | 1,664 | 0.1% |
| Net Income | 495 | 555 | 585 | 602 | 536 | -10.9% |
Balance Sheet
|
|---|
| Cash | 75 | 0 | 69 | 2 | 53 | 2,536.5% |
| Short Term Debt | 313 | 1,044 | 0 | 0 | 553 | |
| Long Term Debt | 7,586 | 8,065 | 8,615 | 9,565 | 9,412 | -1.6% |
Cash flow
|
|---|
| Capex | 1 | 60 | 3 | 3 | 3 | 16.6% |
Ratios
|
|---|
| Revenue growth | 19.0% | 38.4% | 2.3% | 1.0% | -0.5% | |
| EBITDA growth | 19.9% | 36.1% | 2.0% | 1.4% | 0.1% | |
|
|---|
| EBITDA Margin | 90.6% | 89.1% | 88.8% | 89.2% | 89.7% | 0.5% |
| Net Income Margin | 38.0% | 30.8% | 31.7% | 32.3% | 28.9% | -3.4% |
| CAPEX, % of revenue | 0.1% | 3.3% | 0.2% | 0.1% | 0.2% | 0.0% |
|
|---|
| ROIC | 6.2% | 5.6% | 6.1% | 5.7% | 4.9% | -0.7% |
| ROE | 13.8% | 13.9% | 13.7% | 13.1% | 10.8% | -2.3% |
| Net Debt/EBITDA | 6.6x | 5.7x | 5.2x | 5.8x | 6.0x | 0.2x |
Peers in Financial Institutions
Below we provide Tourism Finance Corporation Of India benchmarking against other companies in Financial Institutions 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 EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Financial Corporation ($GUJSTATFIN) | - | - | - | -818.5% | - |
| |
|---|
| Median (1 company) | - | - | - | -818.5% | - |
|---|
| Tourism Finance Corporation Of India ($TFCILTD) | 90.6% | 89.1% | 88.8% | 89.2% | 89.7% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Financial Corporation ($GUJSTATFIN) | - | - | - | - | - |
| |
|---|
| Median (1 company) | - | - | - | - | - |
|---|
| Tourism Finance Corporation Of India ($TFCILTD) | 6.2% | 5.6% | 6.1% | 5.7% | 4.9% |
