Irb Infrastructure Developers reports 36.7% CAPEX growth in 2016 and 33.3% Revenue growth
19-05-2016 • About Irb Infrastructure Developers (
$IRB) • By InTwits
Irb Infrastructure Developers reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Irb Infrastructure Developers is a fast growth stock: FY2016 revenue growth was 33.3%, 5 year revenue CAGR was 16.0% at FY2016 ROIC 9.8%
- Irb Infrastructure Developers has high CAPEX intensity: 5 year average CAPEX/Revenue was 67.4%. At the same time it's a lot of higher than industry average of 39.9%.
- CAPEX is quite volatile: ₹270m in FY2016, ₹151m in FY2015, ₹311m in FY2014, ₹429m in FY2013, ₹896m in FY2012
- The company has business model with low profitability: ROIC is 9.8%
- It operates with high leverage: Net Debt/EBITDA is 5.1x while industry average is 5.0x
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 jumped on 33.3%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at 1.2% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 58.9% to 56.7% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin decreased slightly on 1.7 pp from 14.1% to 12.4% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Irb Infrastructure Developers had CAPEX/Revenue of 61.6%. CAPEX/Revenue decreased on 5.6 pp from 67.2% in FY2013 to 61.6% in FY2016. Average CAPEX/Revenue for the last three years was 64.3%. To secure its fast growth Irb Infrastructure Developers made large investments to CAPEX (119% of EBITDA).
Return on investment
The company operates at good ROE (13.8%) while ROIC is low (9.8%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. During FY2012-FY2016 ROIC bottomed in FY2015 at 9.5%. During the last 5 years ROE bottomed in FY2014 at 13.5% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.1x and Debt / EBITDA is 5.6x. Net Debt / EBITDA increased on 0.1x from 5.0x to 5.1x in FY2016. Debt jumped on 19.2% while cash decreased slightly on 1.2%.
Irb Infrastructure Developers has short term refinancing risk: cash is only 63.0% of short term debt.
Valuation and dividends
Irb Infrastructure Developers's trades at EV/EBITDA 8.0x and P/E 12.1x while industy averages are 17.8x and 21.9x.
Financial and operational results
Irb Infrastructure Developers ($IRB) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 31,330 | 36,872 | 37,319 | 38,489 | 51,302 | 33.3% |
| SG&A | | | | 36 | 113 | 213.5% |
| EBITDA | 13,985 | 16,371 | 17,652 | 22,118 | 26,611 | 20.3% |
| Net Income | 4,960 | 5,567 | 4,591 | 5,429 | 6,358 | 17.1% |
Balance Sheet
|
|---|
| Cash | 3,076 | 2,382 | 4,217 | 14,940 | 14,757 | -1.2% |
| Short Term Debt | 20,267 | 21,412 | 16,861 | 17,718 | 23,421 | 32.2% |
| Long Term Debt | 50,455 | 66,349 | 93,980 | 108,044 | 126,516 | 17.1% |
Cash flow
|
|---|
| Capex | 24,201 | 24,774 | 26,536 | 23,125 | 31,608 | 36.7% |
Ratios
|
|---|
| Revenue growth | 28.5% | 17.7% | 1.2% | 3.1% | 33.3% | |
| EBITDA growth | 25.8% | 17.1% | 7.8% | 25.3% | 20.3% | |
|
|---|
| EBITDA Margin | 44.6% | 44.4% | 47.3% | 57.5% | 51.9% | -5.6% |
| SG&A, % of revenue | | | | 0.1% | 0.2% | 0.1% |
| Net Income Margin | 15.8% | 15.1% | 12.3% | 14.1% | 12.4% | -1.7% |
| CAPEX, % of revenue | 77.2% | 67.2% | 71.1% | 60.1% | 61.6% | 1.5% |
|
|---|
| ROIC | 12.8% | 10.7% | 9.6% | 9.5% | 9.8% | 0.3% |
| ROE | 18.8% | 18.2% | 13.5% | 13.7% | 13.8% | 0.1% |
| Net Debt/EBITDA | 4.8x | 5.2x | 6.0x | 5.0x | 5.1x | 0.1x |
Peers in Roads & Highways
Below we provide Irb Infrastructure Developers benchmarking against other companies in Roads & Highways 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | - | 18.5% | -0.9% | -1.3% | 27.1% |
| Noida Toll Bridge Company ($NOIDATOLL) | - | 13.3% | 11.2% | 3.0% | 5.8% |
| |
|---|
| Median (2 companies) | - | 15.9% | 5.2% | 0.9% | 16.5% |
|---|
| Irb Infrastructure Developers ($IRB) | - | 17.7% | 1.2% | 3.1% | 33.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 71.7% | 68.3% | 73.0% | 70.4% | 72.0% |
| Il&Fs Transportation Networks ($IL&FSTRANS) | 26.5% | 27.9% | 28.9% | 33.1% | 33.7% |
| |
|---|
| Median (2 companies) | 49.1% | 48.1% | 50.9% | 51.7% | 52.9% |
|---|
| Irb Infrastructure Developers ($IRB) | 44.6% | 44.4% | 47.3% | 57.5% | 51.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 34.5% | 46.1% | 48.5% | 43.9% | 48.3% |
| Noida Toll Bridge Company ($NOIDATOLL) | 0.3% | 1.0% | 0.2% | 0.7% | 9.8% |
| |
|---|
| Median (2 companies) | 17.4% | 23.5% | 24.4% | 22.3% | 29.0% |
|---|
| Irb Infrastructure Developers ($IRB) | 77.2% | 67.2% | 71.1% | 60.1% | 61.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Noida Toll Bridge Company ($NOIDATOLL) | 10.9% | 12.8% | 15.0% | 14.4% | 10.6% |
| Il&Fs Transportation Networks ($IL&FSTRANS) | 13.6% | 10.9% | 8.1% | 7.3% | 7.7% |
| |
|---|
| Median (2 companies) | 12.3% | 11.8% | 11.6% | 10.9% | 9.1% |
|---|
| Irb Infrastructure Developers ($IRB) | 12.8% | 10.7% | 9.6% | 9.5% | 9.8% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Il&Fs Transportation Networks ($IL&FSTRANS) | 6.8x | 7.6x | 9.6x | 10.6x | 9.7x |
| Noida Toll Bridge Company ($NOIDATOLL) | 1.1x | 0.3x | 0.1x | 0.2x | 0.1x |
| |
|---|
| Median (2 companies) | 3.9x | 3.9x | 4.8x | 5.4x | 4.9x |
|---|
| Irb Infrastructure Developers ($IRB) | 4.8x | 5.2x | 6.0x | 5.0x | 5.1x |
