Man Infraconstruction Net Income dropped on 72.0% while EBITDA Margin increased on 5.0 pp from 11.0% to 16.0%
19-05-2016 • About Man Infraconstruction (
$MANINFRA) • By InTwits
Man Infraconstruction reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Infraconstruction is a company in decline: FY2016 revenue growth was -15.4%, 5 years revenue CAGR was -17.9%
- EBITDA Margin is quite volatile: 16.0% in FY2016, 11.0% in FY2015, 5.9% in FY2014, 9.2% in FY2013, 20.0% in FY2012
- Man Infraconstruction has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's in pair with industry average of 11.3%
- CAPEX is quite volatile: ₹102m in FY2016, ₹495m in FY2015, ₹993m in FY2014, ₹71m in FY2013, ₹382m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.2%
- It operates with high leverage: Net Debt/EBITDA is 6.3x while industry average is 4.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Man Infraconstruction's Revenue dropped on 15.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.0 pp from 11.0% to 16.0% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 5.9% and was growing since that time.
Net Income margin dropped on 11.9 pp from 17.8% to 5.9% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Man Infraconstruction had CAPEX/Revenue of 4.5%. The company's CAPEX/Revenue increased on 2.9 pp from 1.6% in FY2013 to 4.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 16.0%.
Return on investment
The company operates at low ROIC (3.2%) and ROE (2.1%). ROIC increased slightly on 0.89 pp from 2.3% to 3.2% in FY2016. ROE decreased on 5.5 pp from 7.7% to 2.1% in FY2016. During the last 5 years ROIC bottomed in FY2014 at 1.7% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.3x and Debt / EBITDA is 9.9x. Net Debt / EBITDA jumped on 5.6x from 0.8x to 6.3x in FY2016. Debt surged on 125% while cash decreased on 6.4%.
Man Infraconstruction has no short term refinancing risk: cash is higher than short term debt (188.3%).
Valuation and dividends
The company's trades at EV/EBITDA 33.3x and P/E 73.1x while industy averages are 17.8x and 21.9x. Man Infraconstruction's EV/(EBITDA-CAPEX) is 46.5x with the industry average at 22.8x.
Financial and operational results
Man Infraconstruction ($MANINFRA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,890 | 4,471 | 3,973 | 2,659 | 2,250 | -15.4% |
| EBITDA | 979 | 412 | 235 | 292 | 359 | 22.9% |
| Net Income | 544 | 481 | 289 | 474 | 133 | -72.0% |
Balance Sheet
|
|---|
| Cash | 352 | 192 | 82 | 1,355 | 1,269 | -6.4% |
| Short Term Debt | 372 | 256 | 162 | 477 | 674 | 41.1% |
| Long Term Debt | 0 | 0 | 660 | 1,103 | 2,874 | 160.7% |
Cash flow
|
|---|
| Capex | 382 | 71 | 993 | 495 | 102 | -79.5% |
Ratios
|
|---|
| Revenue growth | -19.1% | -8.6% | -11.1% | -33.1% | -15.4% | |
| EBITDA growth | 0.2% | -57.9% | -43.0% | 24.4% | 22.9% | |
|
|---|
| EBITDA Margin | 20.0% | 9.2% | 5.9% | 11.0% | 16.0% | 5.0% |
| Net Income Margin | 11.1% | 10.8% | 7.3% | 17.8% | 5.9% | -11.9% |
| CAPEX, % of revenue | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% | -14.1% |
|
|---|
| ROIC | 13.3% | 3.9% | 1.7% | 2.3% | 3.2% | 0.9% |
| ROE | 10.4% | 8.6% | 4.9% | 7.7% | 2.1% | -5.5% |
| Net Debt/EBITDA | 0.0x | 0.2x | 3.1x | 0.8x | 6.3x | 5.6x |
Peers in Construction & Engineering
Below you can find Man Infraconstruction benchmarking vs. other companies in Construction & Engineering industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | - |
| Welspun Projects ($WELPROJ) | 41.2% | -8.9% | -20.7% | 239.1% | - |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | -14.3% | 16.7% | 12.4% | 63.0% | - |
| Atlanta ($ATLANTA) | -47.6% | 115.1% | 28.1% | 50.2% | - |
| |
|---|
| Median (32 companies) | 2.7% | 6.9% | 7.1% | 1.2% | 1.7% |
|---|
| Man Infraconstruction ($MANINFRA) | - | -8.6% | -11.1% | -33.1% | -15.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 36.9% | 35.9% | 32.4% | 31.5% | - |
| Arss Infrastructure Projects ($ARSSINFRA) | 14.0% | 13.9% | 22.0% | 31.3% | - |
| Reliance Industrial Infrastructure ($RIIL) | - | - | - | 30.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | - |
| |
|---|
| Median (36 companies) | 11.9% | 11.3% | 10.7% | 10.1% | 11.4% |
|---|
| Man Infraconstruction ($MANINFRA) | 20.0% | 9.2% | 5.9% | 11.0% | 16.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | - |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Welspun Projects ($WELPROJ) | 0.4% | - | 0.6% | 17.3% | - |
| |
|---|
| Median (23 companies) | 7.3% | 8.6% | 4.0% | 3.1% | 1.7% |
|---|
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Skipper ($SKIPPER) | 10.4% | 13.5% | 14.7% | 27.4% | 24.4% |
| Voltas ($VOLTAS) | 19.6% | 11.7% | 11.8% | 19.3% | 18.2% |
| Coromandel Engineering Company ($COROENGG) | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% |
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | - |
| Itd Cementation India ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.5% | 6.3% | 6.8% | 7.9% |
|---|
| Man Infraconstruction ($MANINFRA) | 13.3% | 3.9% | 1.7% | 2.3% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | - |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | - |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | - |
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | - |
| |
|---|
| Median (30 companies) | 4.7x | 5.7x | 6.6x | 3.1x | 1.9x |
|---|
| Man Infraconstruction ($MANINFRA) | 0.0x | 0.2x | 3.1x | 0.8x | 6.3x |
