Gvk Power & Infrastructure Net Debt / EBITDA dropped on 6.0x from 20.2x to 14.2x in 2016 while Debt increased on 7.5%
20-05-2016 • About Gvk Power & Infrastructure (
$GVKPIL) • By InTwits
Gvk Power & Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gvk Power & Infrastructure is a fast growth stock: FY2016 revenue growth was 32.5%, 5 year revenue CAGR was 16.1% at FY2016 ROIC 3.2%
- EBITDA Margin is expanding: 44.9% in FY2016 vs. 38.2% in FY2015 vs. 28.3% in FY2012
- Gvk Power & Infrastructure has high CAPEX intensity: 5 year average CAPEX/Revenue was 94.9%. At the same time it's a lot of higher than industry average of 35.9%.
- CAPEX is quite volatile: ₹14,916m in FY2016, ₹16,086m in FY2015, ₹30,764m in FY2014, ₹35,642m in FY2013, ₹34,662m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.2%
- It operates with high leverage: Net Debt/EBITDA is 14.2x while industry average is 8.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gvk Power & Infrastructure's Revenue jumped on 32.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.3 pp from 17.1% to 13.8% in FY2016. EBITDA Margin followed a growing trend at 4.4 pp per annum in FY2012-FY2016.
Net Income margin increased on 4.2 pp from -27.4% to -23.1% in FY2016. Net Income margin declined at -6.6 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Gvk Power & Infrastructure's CAPEX/Revenue was 36.9% in FY2016. The company showed big decline in CAPEX/Revenue of 99.8 pp from 137% in FY2013 to 36.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 66.2%. Gvk Power & Infrastructure invested a big chunk of EBITDA (82.2%) to CAPEX to secure its growth. CAPEX as a % of Revenue declined at -28.8 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low but positive ROIC (3.2%) and negative ROE (-52.4%). ROIC increased slightly on 1.6 pp from 1.6% to 3.2% in FY2016. ROE dropped on 19.1 pp from -33.4% to -52.4% in FY2016. ROE stuck to a declining trend at -13.2 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 14.2x and Debt / EBITDA is 14.7x. Net Debt / EBITDA dropped on 6.0x from 20.2x to 14.2x in FY2016. Debt increased on 7.5% while cash dropped on 30.7%.
Gvk Power & Infrastructure has short term refinancing risk: cash is only 17.9% of short term debt.
Management team
Gvk Power & Infrastructure's CFO is A Issac George. A Issac George has 15 years tenure at the company.
Financial and operational results
Gvk Power & Infrastructure ($GVKPIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24,918 | 26,077 | 28,209 | 30,497 | 40,399 | 32.5% |
| SG&A | | | | | 71 | |
| EBITDA | 7,061 | 7,137 | 10,502 | 11,651 | 18,155 | 55.8% |
| Net Income | 615 | -3,360 | -3,687 | -8,347 | -9,342 | |
Balance Sheet
|
|---|
| Cash | 7,944 | 14,742 | 13,761 | 13,082 | 9,061 | -30.7% |
| Short Term Debt | 31,419 | 35,404 | 30,082 | 56,519 | 50,597 | -10.5% |
| Long Term Debt | 111,155 | 150,236 | 194,555 | 192,218 | 216,762 | 12.8% |
Cash flow
|
|---|
| Capex | 34,662 | 35,642 | 30,764 | 16,086 | 14,916 | -7.3% |
Ratios
|
|---|
| Revenue growth | 30.1% | 4.6% | 8.2% | 8.1% | 32.5% | |
| EBITDA growth | 34.6% | 1.1% | 47.2% | 10.9% | 55.8% | |
|
|---|
| EBITDA Margin | 28.3% | 27.4% | 37.2% | 38.2% | 44.9% | 6.7% |
| SG&A, % of revenue | | | | | 0.2% | |
| Net Income Margin | 2.5% | -12.9% | -13.1% | -27.4% | -23.1% | 4.2% |
| CAPEX, % of revenue | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% | -15.8% |
|
|---|
| ROIC | 2.9% | 1.6% | 2.3% | 1.6% | 3.2% | 1.6% |
| ROE | 1.8% | -9.9% | -11.8% | -33.4% | -52.4% | -19.1% |
| Net Debt/EBITDA | 19.1x | 23.9x | 20.1x | 20.2x | 14.2x | -6.0x |
Peers in Electric Utilities
Below you can find Gvk Power & Infrastructure benchmarking vs. other companies in Electric Utilities 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 |
|---|
| 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 ($PTC) | - | 14.2% | 31.5% | 14.9% | 0.6% |
| |
|---|
| Median (17 companies) | 32.0% | 15.3% | 8.8% | 6.1% | 0.6% |
|---|
| Gvk Power & Infrastructure ($GVKPIL) | - | 4.6% | 8.2% | 8.1% | 32.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 83.7% | 85.6% | 84.9% | 85.8% | - |
| Orient Green Power Company ($GREENPOWER) | 24.4% | 53.3% | 57.8% | 82.8% | 86.9% |
| Bf Utilities ($BFUTILITIE) | 43.9% | 55.1% | 61.2% | 72.2% | - |
| Nhpc ($NHPC) | 71.4% | 66.5% | 59.3% | 63.4% | - |
| Jaiprakash Power Ventures ($JPPOWER) | 91.7% | 70.6% | 60.1% | 63.3% | - |
| |
|---|
| Median (18 companies) | 24.4% | 24.7% | 25.0% | 22.3% | 25.7% |
|---|
| Gvk Power & Infrastructure ($GVKPIL) | 28.3% | 27.4% | 37.2% | 38.2% | 44.9% |
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% | - |
| Gmr Infrastructure ($GMRINFRA) | 139.1% | 104.6% | 53.0% | 34.8% | - |
| |
|---|
| Median (15 companies) | 67.4% | 39.8% | 30.3% | 19.3% | 7.8% |
|---|
| Gvk Power & Infrastructure ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
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 ($POWERGRID) | 8.3% | 8.8% | 8.4% | 7.7% | - |
| |
|---|
| Median (19 companies) | 5.6% | 5.8% | 5.5% | 6.2% | 10.6% |
|---|
| Gvk Power & Infrastructure ($GVKPIL) | 2.9% | 1.6% | 2.3% | 1.6% | 3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | - |
| Gmr Infrastructure ($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 | - |
| Reliance Infrastructure ($RELINFRA) | 6.2x | 7.3x | 8.4x | 10.9x | 5.8x |
| |
|---|
| Median (18 companies) | 8.6x | 6.6x | 6.2x | 6.1x | 5.0x |
|---|
| Gvk Power & Infrastructure ($GVKPIL) | 19.1x | 23.9x | 20.1x | 20.2x | 14.2x |
