Asian Hotels (East) Debt dropped on 52.4% and Net Debt / EBITDA dropped on 4.4x from 7.1x to 2.7x
24-05-2016 • About Asian Hotels (East) (
$AHLEAST) • By InTwits
Asian Hotels (East) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Asian Hotels (East) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹42m in FY2016, ₹35m in FY2015, ₹42m in FY2014, ₹181m in FY2013, ₹10m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.2%
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 increased on 2.3%. During FY2012-FY2016 Revenue growth topped in FY2013 at 76.9% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 26.3 pp from 5.7% to -20.6% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 21.8% and was growing since that time.
Net Income margin increased on 8.3 pp from -11.6% to -3.3% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -11.6%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.2% in FY2016. Asian Hotels (East) showed decline in CAPEX/Revenue of 9.8 pp from 12.0% in FY2013 to 2.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low but positive ROIC (2.2%) and negative ROE (-0.9%). ROIC increased slightly on 1.1 pp from 1.1% to 2.2% in FY2016. ROE increased slightly on 2.0 pp from -2.8% to -0.85% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 1.1%. During the last 5 years ROE bottomed in FY2015 at -2.8%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 4.4x from 7.1x to 2.7x in FY2016. Debt dropped on 52.4% while cash jumped on 15.6%. During the last 5 years Net Debt/EBITDA topped in FY2013 at 9.8x and was declining since that time.
Asian Hotels (East) has short term refinancing risk: cash is only 39.6% of short term debt.
Financial and operational results
Asian Hotels (East) ($AHLEAST) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 854 | 1,511 | 1,797 | 1,884 | 1,927 | 2.3% |
| EBITDA | 269 | 358 | 392 | 443 | 544 | 22.8% |
| Net Income | 280 | 107 | -75 | -219 | -64 | |
Balance Sheet
|
|---|
| Cash | 12 | 37 | 48 | 43 | 50 | 15.6% |
| Short Term Debt | 5 | 190 | 66 | 101 | 126 | 24.5% |
| Long Term Debt | 0 | 3,343 | 3,458 | 3,103 | 1,399 | -54.9% |
Cash flow
|
|---|
| Capex | 10 | 181 | 42 | 35 | 42 | 19.9% |
Ratios
|
|---|
| Revenue growth | 3.4% | 76.9% | 18.9% | 4.9% | 2.3% | |
| EBITDA growth | 5.5% | 33.0% | 9.5% | 13.0% | 22.8% | |
|
|---|
| EBITDA Margin | 31.5% | 23.7% | 21.8% | 23.5% | 28.2% | 4.7% |
| Net Income Margin | 32.7% | 7.1% | -4.2% | -11.6% | -3.3% | 8.3% |
| CAPEX, % of revenue | 1.1% | 12.0% | 2.3% | 1.9% | 2.2% | 0.3% |
|
|---|
| ROIC | 2.5% | 1.7% | 1.2% | 1.1% | 2.2% | 1.1% |
| ROE | 3.6% | 1.3% | -0.9% | -2.8% | -0.9% | 2.0% |
| Net Debt/EBITDA | -0.0x | 9.8x | 8.9x | 7.1x | 2.7x | -4.4x |
Peers in Hotels
Below we provide Asian Hotels (East) benchmarking against other companies in Hotels 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 |
|---|
| Asian Hotels (West) ($AHLWEST) | - | -0.2% | 3.1% | 96.5% | 16.3% |
| Sterling Holiday Resorts (India) ($STERLINH) | 69.9% | 50.6% | 21.3% | 26.2% | - |
| Royale Manor Hotels & Industries ($RAYALEMA) | - | 2.2% | 5.5% | 18.9% | -16.0% |
| The Byke Hospitality ($THEBYKE) | - | 105.7% | 54.3% | 16.5% | 27.6% |
| Eih ($EIHOTEL) | - | 4.4% | 5.3% | 7.9% | -0.6% |
| |
|---|
| Median (15 companies) | 18.2% | 8.6% | 5.5% | 3.1% | 10.0% |
|---|
| Asian Hotels (East) ($AHLEAST) | - | 76.9% | 18.9% | 4.9% | 2.3% |
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) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.7% | 22.6% | 20.0% | 20.0% | 16.5% |
|---|
| Asian Hotels (East) ($AHLEAST) | 31.5% | 23.7% | 21.8% | 23.5% | 28.2% |
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 ($EIHOTEL) | 13.6% | 12.0% | 7.1% | 9.0% | 5.5% |
| |
|---|
| Median (11 companies) | 30.8% | 22.1% | 11.4% | 7.5% | 6.5% |
|---|
| Asian Hotels (East) ($AHLEAST) | 1.1% | 12.0% | 2.3% | 1.9% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| The Byke Hospitality ($THEBYKE) | 5.3% | 14.5% | 22.6% | 24.1% | 32.0% |
| Advani Hotels & Resorts (India) ($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) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | - |
| |
|---|
| Median (29 companies) | 5.9% | 5.0% | 4.1% | 3.5% | 8.3% |
|---|
| Asian Hotels (East) ($AHLEAST) | 2.5% | 1.7% | 1.2% | 1.1% | 2.2% |
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 | - |
| 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 | - |
| Country Club (India) ($COUNCLB) | 2.0x | 1.8x | 3.2x | 3.5x | - |
| |
|---|
| Median (19 companies) | 2.0x | 2.0x | 0.9x | 0.3x | 0.3x |
|---|
| Asian Hotels (East) ($AHLEAST) | -0.0x | 9.8x | 8.9x | 7.1x | 2.7x |
