Orient Green Power Company reports 137% CAPEX growth in 2016 while 13.4% Revenue decline
18-05-2016 • About Orient Green Power Company (
$GREENPOWER) • By InTwits
Orient Green Power Company reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 86.9% in FY2016 vs. 82.8% in FY2015 vs. 24.4% in FY2012
- EBITDA Margin is quite volatile: 86.9% in FY2016, 82.8% in FY2015, 57.8% in FY2014, 53.3% in FY2013, 24.4% in FY2012
- Orient Green Power Company has high CAPEX intensity: 5 year average CAPEX/Revenue was 148.3%. At the same time it's a lot of higher than industry average of 36.8%.
- CAPEX is quite volatile: ₹1,367m in FY2016, ₹576m in FY2015, ₹2,769m in FY2014, ₹6,033m in FY2013, ₹10,581m in FY2012
- The company has potentially unprofitable business model: ROIC is 0.6%
- It operates with high leverage: Net Debt/EBITDA is 9.1x while industry average is 8.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Orient Green Power Company's Revenue dropped on 13.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.1 pp from 82.8% to 86.9% in FY2016. EBITDA Margin followed a growing trend at 15.4 pp per annum in FY2012-FY2016.
Net Income margin dropped on 52.1 pp from -77.9% to -130% in FY2016. Net Income margin declined at -26.3 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Orient Green Power Company's CAPEX/Revenue was 52.8% in FY2016. CAPEX/Revenue dropped on 117 pp from 170% in FY2013 to 52.8% in FY2016. Average CAPEX/Revenue for the last three years was 49.7%. Orient Green Power Company invested a big chunk of EBITDA (60.8%) to CAPEX which didn't stop revenue from falling. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 19.3%.
Return on investment
The company operates at low but positive ROIC (0.6%) and negative ROE (-42.9%). ROIC decreased slightly on 1.5 pp from 2.2% to 0.63% in FY2016. ROE dropped on 18.2 pp from -24.8% to -42.9% in FY2016. ROE followed a declining trend at -9.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 9.1x Net Debt / EBITDA and 9.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from 8.7x to 9.1x in FY2016. Debt decreased on 4.6% while cash jumped on 139%.
Orient Green Power Company has short term refinancing risk: cash is only 5.6% of short term debt.
Financial and operational results
Orient Green Power Company ($GREENPOWER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,504 | 3,548 | 3,595 | 2,989 | 2,589 | -13.4% |
| EBITDA | 612 | 1,893 | 2,078 | 2,475 | 2,250 | -9.1% |
| Net Income | -693 | -699 | -1,876 | -2,330 | -3,366 | |
Balance Sheet
|
|---|
| Cash | 303 | 483 | 255 | 87 | 209 | 138.9% |
| Short Term Debt | 3,445 | 3,560 | 3,449 | 2,890 | 3,729 | 29.1% |
| Long Term Debt | 10,012 | 15,872 | 18,818 | 18,692 | 16,860 | -9.8% |
Cash flow
|
|---|
| Capex | 10,581 | 6,033 | 2,769 | 576 | 1,367 | 137.3% |
Ratios
|
|---|
| Revenue growth | 20.0% | 41.7% | 1.3% | -16.9% | -13.4% | |
| EBITDA growth | -31.3% | 209.3% | 9.8% | 19.1% | -9.1% | |
|
|---|
| EBITDA Margin | 24.4% | 53.3% | 57.8% | 82.8% | 86.9% | 4.1% |
| Net Income Margin | -27.7% | -19.7% | -52.2% | -77.9% | -130.0% | -52.1% |
| CAPEX, % of revenue | 422.5% | 170.0% | 77.0% | 19.3% | 52.8% | 33.5% |
|
|---|
| ROIC | -0.2% | 2.7% | 2.0% | 2.2% | 0.6% | -1.5% |
| ROE | -5.7% | -5.8% | -16.3% | -24.8% | -42.9% | -18.2% |
| Net Debt/EBITDA | 21.5x | 10.0x | 10.6x | 8.7x | 9.1x | 0.4x |
Peers in Electric Utilities
Below we provide Orient Green Power Company benchmarking against other companies in Electric Utilities 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 |
|---|
| Bf Utilities ($BFUTILITIE) | 41.4% | 9.2% | 20.6% | 117.9% | - |
| Jaiprakash Power Ventures ($JPPOWER) | 119.2% | 52.2% | 9.0% | 38.1% | - |
| Adani Power ($ADANIPOWER) | - | 65.7% | 128.0% | 21.7% | 34.1% |
| Torrent Power ($TORNTPOWER) | - | 9.9% | 5.6% | 19.8% | 12.4% |
| Ptc India ($PTC) | - | 14.2% | 31.5% | 14.9% | 0.6% |
| |
|---|
| Median (17 companies) | 31.1% | 14.2% | 8.8% | 8.1% | 6.5% |
|---|
| Orient Green Power Company ($GREENPOWER) | - | 41.7% | 1.3% | -16.9% | -13.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 83.7% | 85.6% | 84.9% | 85.8% | - |
| Bf Utilities ($BFUTILITIE) | 43.9% | 55.1% | 61.2% | 72.2% | - |
| Nhpc ($NHPC) | 71.4% | 66.5% | 59.3% | 63.4% | - |
| Jaiprakash Power Ventures ($JPPOWER) | 91.7% | 70.6% | 60.1% | 63.3% | - |
| Energy Development Company ($ENERGYDEV) | - | - | - | 44.3% | - |
| |
|---|
| Median (18 companies) | 28.3% | 24.7% | 25.0% | 22.3% | 22.9% |
|---|
| Orient Green Power Company ($GREENPOWER) | 24.4% | 53.3% | 57.8% | 82.8% | 86.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 184.3% | 172.4% | 173.4% | 169.8% | - |
| Jaiprakash Power Ventures ($JPPOWER) | 378.9% | 341.9% | 229.9% | 113.6% | - |
| Ksk Energy Ventures ($KSK) | 161.9% | 80.3% | 57.0% | 57.4% | - |
| Nava Bharat Ventures ($NBVENTURES) | 69.0% | 30.5% | 70.6% | 55.3% | - |
| Gvk Power & Infrastructure ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | - |
| |
|---|
| Median (15 companies) | 67.4% | 39.8% | 30.3% | 20.9% | 7.6% |
|---|
| Orient Green Power Company ($GREENPOWER) | 422.5% | 170.0% | 77.0% | 19.3% | 52.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Utilities ($BFUTILITIE) | 1.9% | 4.5% | 6.0% | 17.2% | - |
| Alstom T&D India ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| Ptc India ($PTC) | 11.2% | 10.4% | 13.6% | 12.3% | 13.6% |
| Torrent Power ($TORNTPOWER) | 19.0% | 7.3% | 4.9% | 8.1% | 12.2% |
| Power Grid Corporation Of India ($POWERGRID) | 8.3% | 8.8% | 8.4% | 7.7% | - |
| |
|---|
| Median (19 companies) | 5.6% | 5.8% | 5.5% | 6.2% | 10.9% |
|---|
| Orient Green Power Company ($GREENPOWER) | -0.2% | 2.7% | 2.0% | 2.2% | 0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | - |
| Gvk Power & Infrastructure ($GVKPIL) | 19.1x | 23.9x | 20.1x | 20.2x | - |
| Gmr Infrastructure ($GMRINFRA) | 19.5x | 15.1x | 16.7x | 17.7x | - |
| Lanco Infratech ($LITL) | 16.3x | 12.9x | 19.2x | 17.5x | - |
| Jaiprakash Power Ventures ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | - |
| |
|---|
| Median (18 companies) | 8.6x | 6.6x | 6.2x | 6.1x | 4.9x |
|---|
| Orient Green Power Company ($GREENPOWER) | 21.5x | 10.0x | 10.6x | 8.7x | 9.1x |
