The Byke Hospitality reports 108% CAPEX growth in 2016 and 27.6% Revenue growth
20-05-2016 • About The Byke Hospitality (
$THEBYKE) • By InTwits
The Byke Hospitality reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- The Byke Hospitality is a fast growth stock: FY2016 revenue growth was 27.6%, 5 year revenue CAGR was 47.4% at FY2016 ROIC 32.0%
- EBITDA Margin is expanding: 22.7% in FY2016 vs. 20.5% in FY2015 vs. 10.5% in FY2012
- The Byke Hospitality has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.5%. At the same time it's in pair with industry average of 11.4%
- CAPEX is quite volatile: ₹1,470m in FY2016, ₹371m in FY2015, ₹275m in FY2014, ₹374m in FY2013, ₹393m in FY2012
- The company has highly profitable business model: ROIC is 32.0%
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 surged on 27.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 12.7% to 15.9% in FY2016. EBITDA Margin grew at 2.8 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2016. Net Income margin followed a growing trend at 1.6 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The Byke Hospitality's CAPEX/Revenue was 7.9% in FY2016. The Byke Hospitality's CAPEX/Revenue decreased on 7.8 pp from 15.7% in FY2013 to 7.9% in FY2016. It's average CAPEX/Revenue for the last three years was 6.2%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 4.9%.
Return on investment
The company operates at high and attractive ROIC (32.0%) and ROE (23.4%). ROIC increased on 7.9 pp from 24.1% to 32.0% in FY2016. ROE increased slightly on 1.8 pp from 21.7% to 23.4% in FY2016. ROIC followed a growing trend at 6.3 pp per annum in the last 5 years. ROE grew at 5.0 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.2x from 0.3x to 0.1x in FY2016. Debt dropped on 33.6% while cash jumped on 32.7%. Net Debt/EBITDA declined at -0.6x per annum in the last 5 years.
The Byke Hospitality has short term refinancing risk: cash is only 47.3% of short term debt.
Valuation and dividends
The Byke Hospitality's trades at EV/EBITDA 12.6x and P/E 25.4x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 19.3x with the industry average at 22.8x.
Management team
The company's CFO Sumit Bajaj has spent 4 years with the company.
Financial and operational results
The Byke Hospitality ($THEBYKE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 491 | 1,009 | 1,557 | 1,814 | 2,315 | 27.6% |
| EBITDA | 51 | 175 | 286 | 372 | 526 | 41.3% |
| Net Income | 24 | 78 | 159 | 200 | 259 | 29.5% |
Balance Sheet
|
|---|
| Cash | 20 | 10 | 19 | 22 | 29 | 32.7% |
| Short Term Debt | 62 | 115 | 85 | 87 | 61 | -29.9% |
| Long Term Debt | 96 | 83 | 60 | 38 | 22 | -42.2% |
Cash flow
|
|---|
| Capex | 164 | 158 | 90 | 88 | 183 | 107.8% |
Ratios
|
|---|
| Revenue growth | 47.6% | 105.7% | 54.3% | 16.5% | 27.6% | |
| EBITDA growth | 32.2% | 241.4% | 62.8% | 30.3% | 41.3% | |
|
|---|
| EBITDA Margin | 10.5% | 17.4% | 18.3% | 20.5% | 22.7% | 2.2% |
| Net Income Margin | 4.9% | 7.7% | 10.2% | 11.0% | 11.2% | 0.2% |
| CAPEX, % of revenue | 33.3% | 15.7% | 5.8% | 4.9% | 7.9% | 3.1% |
|
|---|
| ROIC | 5.3% | 14.5% | 22.6% | 24.1% | 32.0% | 7.9% |
| ROE | 3.7% | 11.1% | 20.2% | 21.7% | 23.4% | 1.8% |
| Net Debt/EBITDA | 2.7x | 1.1x | 0.4x | 0.3x | 0.1x | -0.2x |
Peers in Hotels
Below you can find The Byke Hospitality benchmarking vs. other companies in Hotels 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 |
|---|
| Asian Hotels (West) ($AHLWEST) | 0.8% | -0.2% | 3.1% | 96.5% | - |
| Sterling Holiday Resorts (India) ($STERLINH) | 69.9% | 50.6% | 21.3% | 26.2% | - |
| Royale Manor Hotels & Industries ($RAYALEMA) | - | 2.2% | 5.5% | 18.9% | -16.0% |
| Eih ($EIHOTEL) | - | 4.4% | 5.3% | 7.9% | -0.6% |
| India Tourism Development Corporation ($ITDC) | 6.9% | 3.2% | 7.1% | 7.2% | - |
| |
|---|
| Median (15 companies) | 15.7% | 8.6% | 5.5% | 3.1% | 1.5% |
|---|
| The Byke Hospitality ($THEBYKE) | - | 105.7% | 54.3% | 16.5% | 27.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Hotels ($JINDHOT) | - | - | - | 37.6% | - |
| Benares Hotels ($BENARAS) | - | - | - | 33.6% | - |
| Fomento Resorts & Hotels ($FOMEHOT) | - | - | - | 27.9% | - |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 25.9% | - |
| Country Club (India) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.9% | 22.9% | 21.0% | 20.3% | 14.8% |
|---|
| The Byke Hospitality ($THEBYKE) | 10.5% | 17.4% | 18.3% | 20.5% | 22.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 30.8% | 60.2% | 37.2% | 36.1% | - |
| Sayaji Hotels ($SAYAJIHOTL) | 18.9% | 17.5% | 12.4% | 30.3% | - |
| Country Club (India) ($COUNCLB) | 58.7% | 36.6% | 49.6% | 28.5% | - |
| Mahindra Holidays & Resorts India ($MHRIL) | 26.0% | 26.5% | 15.4% | 18.0% | 12.6% |
| Eih ($EIHOTEL) | 13.6% | 12.0% | 7.1% | 9.0% | 5.5% |
| |
|---|
| Median (11 companies) | 26.0% | 22.1% | 11.4% | 7.5% | 6.0% |
|---|
| The Byke Hospitality ($THEBYKE) | 33.3% | 15.7% | 5.8% | 4.9% | 7.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 15.9% | 19.6% |
| Eih ($EIHOTEL) | 5.5% | 4.5% | 5.8% | 6.3% | 6.6% |
| Mahindra Holidays & Resorts India ($MHRIL) | 13.4% | 22.2% | 16.3% | 6.3% | 10.0% |
| Country Club (India) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | - |
| Oriental Hotels ($ORIENTHOT) | 6.4% | 4.3% | 2.7% | 3.8% | 2.5% |
| |
|---|
| Median (29 companies) | 5.9% | 4.7% | 2.8% | 2.3% | 6.6% |
|---|
| The Byke Hospitality ($THEBYKE) | 5.3% | 14.5% | 22.6% | 24.1% | 32.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | - |
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | - |
| Asian Hotels (East) ($AHLEAST) | -0.0x | 9.8x | 8.9x | 7.1x | - |
| Oriental Hotels ($ORIENTHOT) | 4.3x | 4.6x | 6.0x | 5.5x | 6.5x |
| Tgb Banquets And Hotels ($TGBHOTELS) | 3.7x | 3.0x | 2.7x | 4.0x | - |
| |
|---|
| Median (19 companies) | 1.8x | 2.3x | 1.0x | 0.7x | 0.3x |
|---|
| The Byke Hospitality ($THEBYKE) | 2.7x | 1.1x | 0.4x | 0.3x | 0.1x |
