Ncc EBITDA increased on 6.8% and Revenue increased slightly on 0.74%
24-05-2016 • About Ncc (
$NCC) • By InTwits
Ncc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ncc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: ₹2,900m in FY2016, ₹1,325m in FY2015, ₹1,573m in FY2014, ₹1,102m in FY2013, ₹7,481m in FY2012
- The company has business model with average profitability: ROIC is 10.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Ncc's Revenue increased slightly on 0.74%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.63 pp from 10.5% to 11.1% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at 10.2% and was growing since that time.
Net Income margin increased slightly on 0.59 pp from 0.57% to 1.2% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 0.044% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.0% in FY2016. CAPEX/Revenue increased slightly on 1.4 pp from 1.6% in FY2013 to 3.0% in FY2016. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low ROIC (10.5%) and ROE (3.2%). ROIC showed almost no change in FY2016. ROE increased slightly on 1.5 pp from 1.7% to 3.2% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 7.7% and was growing since that time.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 3.1x to 3.0x in FY2016. Debt increased on 5.2% while cash surged on 32.7%.
Ncc has short term refinancing risk: cash is only 14.7% of short term debt.
Financial and operational results
Ncc ($NCC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 66,652 | 69,684 | 74,632 | 95,129 | 95,835 | 0.7% |
| EBITDA | 9,993 | 8,516 | 7,580 | 9,997 | 10,678 | 6.8% |
| Net Income | 549 | 564 | 33 | 539 | 1,106 | 105.2% |
Balance Sheet
|
|---|
| Cash | 2,268 | 2,381 | 1,179 | 2,520 | 3,345 | 32.7% |
| Short Term Debt | 22,813 | 23,088 | 27,459 | 21,234 | 22,692 | 6.9% |
| Long Term Debt | 27,366 | 13,298 | 11,685 | 12,662 | 12,960 | 2.4% |
Cash flow
|
|---|
| Capex | 7,481 | 1,102 | 1,573 | 1,325 | 2,900 | 118.8% |
Ratios
|
|---|
| Revenue growth | 7.0% | 4.5% | 7.1% | 27.5% | 0.7% | |
| EBITDA growth | 37.0% | -14.8% | -11.0% | 31.9% | 6.8% | |
|
|---|
| EBITDA Margin | 15.0% | 12.2% | 10.2% | 10.5% | 11.1% | 0.6% |
| Net Income Margin | 0.8% | 0.8% | 0.0% | 0.6% | 1.2% | 0.6% |
| CAPEX, % of revenue | 11.2% | 1.6% | 2.1% | 1.4% | 3.0% | 1.6% |
|
|---|
| ROIC | 9.5% | 8.4% | 7.7% | 10.2% | 10.5% | 0.3% |
| ROE | 2.1% | 2.1% | 0.1% | 1.7% | 3.2% | 1.5% |
| Net Debt/EBITDA | 4.8x | 4.0x | 5.0x | 3.1x | 3.0x | -0.1x |
Peers in Construction & Engineering
Below we provide Ncc benchmarking against other companies in Construction & Engineering 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 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | - |
| Welspun Projects ($WELPROJ) | - | -8.9% | -20.7% | 239.1% | -73.2% |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | - | 16.7% | 12.4% | 63.0% | -20.2% |
| Atlanta ($ATLANTA) | -47.6% | 115.1% | 28.1% | 50.2% | - |
| |
|---|
| Median (32 companies) | -1.5% | 6.9% | 6.6% | -0.0% | -15.4% |
|---|
| Ncc ($NCC) | - | 4.5% | 7.1% | 27.5% | 0.7% |
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 ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | - |
| |
|---|
| Median (36 companies) | 11.9% | 11.2% | 10.7% | 10.1% | 10.5% |
|---|
| Ncc ($NCC) | 15.0% | 12.2% | 10.2% | 10.5% | 11.1% |
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% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| |
|---|
| Median (23 companies) | 7.3% | 8.6% | 6.9% | 3.2% | 3.0% |
|---|
| Ncc ($NCC) | 11.2% | 1.6% | 2.1% | 1.4% | 3.0% |
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 ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.1% | 5.6% | 6.6% | 6.3% |
|---|
| Ncc ($NCC) | 9.5% | 8.4% | 7.7% | 10.2% | 10.5% |
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 ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | - |
| |
|---|
| Median (30 companies) | 4.5x | 5.7x | 6.6x | 2.9x | 2.1x |
|---|
| Ncc ($NCC) | 4.8x | 4.0x | 5.0x | 3.1x | 3.0x |
