Ajmera Realty & Infra India revenue growth decelerated from 110% in FY2015 to 92.0% in FY2016
19-05-2016 • About Ajmera Realty & Infra India (
$AJMERA) • By InTwits
Ajmera Realty & Infra India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ajmera Realty & Infra India is a growth stock: FY2016 revenue growth was 92.0%, 5 year revenue CAGR was 13.0% at FY2016 ROIC 14.2%
- Ajmera Realty & Infra India has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 6.6%.
- CAPEX is quite volatile: ₹0m in FY2016, ₹0m in FY2015, ₹0m in FY2014, ₹229m in FY2013, ₹497m in FY2012
- The company has highly profitable business model: ROIC is 14.2%
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 jumped on 92.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.0 pp from -26.4% to -45.3% in FY2016. EBITDA Margin followed a growing trend at 5.1 pp per annum in FY2012-FY2016.
Net Income margin decreased on 2.2 pp from 15.6% to 13.4% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 20.7% and was declining since that time.
Return on investment
The company operates at good ROIC (14.2%) while ROE is low (9.8%). ROIC increased on 5.8 pp from 8.3% to 14.2% in FY2016. ROE increased on 3.5 pp from 6.3% to 9.8% in FY2016. During the last 5 years ROIC bottomed in FY2013 at 2.3% and was growing since that time. During the last 5 years ROE bottomed in FY2013 at 3.9% and was growing since that time.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 3.9x to 2.6x in FY2016. Debt surged on 24.6% while cash surged on 149%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 13.8x and was declining since that time.
Ajmera Realty & Infra India has short term refinancing risk: cash is only 12.4% of short term debt.
Financial and operational results
Ajmera Realty & Infra India ($AJMERA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,085 | 799 | 784 | 1,646 | 3,160 | 92.0% |
| EBITDA | 401 | 213 | 228 | 669 | 1,194 | 78.5% |
| Net Income | 387 | 155 | 162 | 257 | 424 | 65.2% |
Balance Sheet
|
|---|
| Cash | 110 | 261 | 183 | 75 | 186 | 148.6% |
| Short Term Debt | 35 | 215 | 159 | 328 | 1,501 | 357.1% |
| Long Term Debt | 1,887 | 2,318 | 3,173 | 2,352 | 1,840 | -21.8% |
Cash flow
|
|---|
| Capex | 497 | 229 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | 21.3% | -61.7% | -1.8% | 109.9% | 92.0% | |
| EBITDA growth | -7.6% | -47.0% | 7.1% | 193.9% | 78.5% | |
|
|---|
| EBITDA Margin | 19.2% | 26.6% | 29.0% | 40.7% | 37.8% | -2.9% |
| Net Income Margin | 18.6% | 19.4% | 20.7% | 15.6% | 13.4% | -2.2% |
| CAPEX, % of revenue | 23.8% | 28.7% | 0.0% | 0.0% | 0.0% | |
|
|---|
| ROIC | 6.6% | 2.3% | 2.4% | 8.3% | 14.2% | 5.8% |
| ROE | 10.2% | 3.9% | 4.1% | 6.3% | 9.8% | 3.5% |
| Net Debt/EBITDA | 4.5x | 10.7x | 13.8x | 3.9x | 2.6x | -1.3x |
Peers in Realty
Below we provide Ajmera Realty & Infra India 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) | - | -21.9% | -88.0% | 275.1% | -98.6% |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| Poddar Developers ($PODDARDEV) | - | 63.9% | 152.9% | 56.0% | 35.7% |
| |
|---|
| Median (34 companies) | -3.6% | 5.6% | -4.5% | 11.4% | 18.5% |
|---|
| Ajmera Realty & Infra India ($AJMERA) | - | -61.7% | -1.8% | 109.9% | 92.0% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($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% | 47.7% |
| |
|---|
| Median (43 companies) | 20.1% | 13.4% | 19.8% | 19.4% | 23.8% |
|---|
| Ajmera Realty & Infra India ($AJMERA) | 19.2% | 26.6% | 29.0% | 40.7% | 37.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | - |
| |
|---|
| Median (30 companies) | 4.7% | 2.3% | 3.7% | 2.5% | 2.9% |
|---|
| Ajmera Realty & Infra India ($AJMERA) | 23.8% | 28.7% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | - |
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | 7.5% |
| Lancor Holdings ($LANCORHOL) | 18.0% | 11.6% | 19.5% | 17.7% | - |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% |
| Sobha Developers ($SOBHA) | 18.8% | 16.7% | 14.6% | 12.7% | 9.0% |
| |
|---|
| Median (50 companies) | 5.7% | 5.1% | 5.7% | 6.8% | 6.7% |
|---|
| Ajmera Realty & Infra India ($AJMERA) | 6.6% | 2.3% | 2.4% | 8.3% | 14.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($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 | 4.8x | 4.9x | 4.0x | 4.2x |
|---|
| Ajmera Realty & Infra India ($AJMERA) | 4.5x | 10.7x | 13.8x | 3.9x | 2.6x |
