Hotel Leelaventure Net Debt / EBITDA dropped on 19.0x from 46.7x to 27.7x in 2016 and Debt dropped on 14.0%
26-05-2016 • About Hotel Leelaventure (
$HOTELEELA) • By InTwits
Hotel Leelaventure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hotel Leelaventure has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.8%. At the same time it's a lot of higher than industry average of 11.5%.
- CAPEX is quite volatile: ₹292m in FY2016, ₹0m in FY2015, ₹751m in FY2014, ₹2,773m in FY2013, ₹7,198m in FY2012
- The company has unprofitable business model: ROIC is -1.7%
- It operates with high leverage: Net Debt/EBITDA is 27.7x while industry average is 3.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.8%. During the last 5 years Revenue growth bottomed in FY2015 at -11.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 16.9% to 18.8% in FY2016.
Net Income margin jumped on 38.1 pp from -65.3% to -27.3% in FY2016.
Investments (CAPEX, working capital and M&A)
Hotel Leelaventure's CAPEX/Revenue was 4.4% in FY2016. CAPEX/Revenue dropped on 38.6 pp from 43.0% in FY2013 to 4.4% in FY2016.
Return on investment
The company operates at negative ROIC (-1.7%) and ROE (-55.0%). ROIC increased slightly on 0.65 pp from -2.3% to -1.7% in FY2016. ROE increased on 9.6 pp from -64.6% to -55.0% in FY2016. ROE followed a declining trend at -14.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 27.7x and Debt / EBITDA is 28.0x. Net Debt / EBITDA dropped on 19.0x from 46.7x to 27.7x in FY2016. Debt dropped on 14.0% while cash surged on 93.0%.
Hotel Leelaventure has short term refinancing risk: cash is only 61.4% of short term debt.
Management team
Hotel Leelaventure's CFO is Krishna T Deshika. Krishna T Deshika has 9 years tenure at the company.
Financial and operational results
Hotel Leelaventure ($HOTELEELA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,718 | 6,447 | 7,184 | 6,365 | 6,609 | 3.8% |
| EBITDA | 666 | 1,152 | 1,460 | 1,073 | 1,548 | 44.2% |
| Net Income | 186 | -4,335 | -4,415 | -4,158 | -1,802 | |
Balance Sheet
|
|---|
| Cash | 125 | 268 | 188 | 227 | 439 | 93.0% |
| Short Term Debt | 6,199 | 19,450 | 23,262 | 389 | 714 | 83.7% |
| Long Term Debt | 35,557 | 27,143 | 25,789 | 49,949 | 42,576 | -14.8% |
Cash flow
|
|---|
| Capex | 7,198 | 2,773 | 751 | 0 | 292 | |
Ratios
|
|---|
| Revenue growth | 23.2% | 12.7% | 11.4% | -11.4% | 3.8% | |
| EBITDA growth | -57.6% | 72.9% | 26.8% | -26.5% | 44.2% | |
|
|---|
| EBITDA Margin | 11.6% | 17.9% | 20.3% | 16.9% | 23.4% | 6.6% |
| Net Income Margin | 3.3% | -67.2% | -61.5% | -65.3% | -27.3% | 38.1% |
| CAPEX, % of revenue | 125.9% | 43.0% | 10.5% | 0.0% | 4.4% | |
|
|---|
| ROIC | -0.6% | -0.4% | -0.6% | -2.3% | -1.7% | 0.7% |
| ROE | 1.0% | -30.8% | -42.2% | -64.6% | -55.0% | 9.6% |
| Net Debt/EBITDA | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x | -19.0x |
Peers in Hotels
Below you can find Hotel Leelaventure 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) ($AHLWEST) | - | -0.2% | 3.1% | 96.5% | 16.3% |
| Sterling Holiday Resorts (India) ($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 ($EIHOTEL) | - | 4.4% | 5.3% | 7.9% | -0.6% |
| |
|---|
| Median (15 companies) | 15.7% | 8.6% | 5.5% | 3.4% | 3.0% |
|---|
| Hotel Leelaventure ($HOTELEELA) | - | 12.7% | 11.4% | -11.4% | 3.8% |
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) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.9% | 22.9% | 20.7% | 20.8% | 17.8% |
|---|
| Hotel Leelaventure ($HOTELEELA) | 11.6% | 17.9% | 20.3% | 16.9% | 23.4% |
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 ($EIHOTEL) | 13.6% | 12.0% | 7.1% | 9.0% | 5.5% |
| |
|---|
| Median (11 companies) | 26.0% | 17.6% | 9.7% | 7.5% | 5.5% |
|---|
| Hotel Leelaventure ($HOTELEELA) | 125.9% | 43.0% | 10.5% | 0.0% | 4.4% |
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) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | - |
| |
|---|
| Median (29 companies) | 5.9% | 5.0% | 4.1% | 3.5% | 4.6% |
|---|
| Hotel Leelaventure ($HOTELEELA) | -0.6% | -0.4% | -0.6% | -2.3% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | - |
| Asian Hotels (East) ($AHLEAST) | -0.0x | 9.8x | 8.9x | 7.1x | 2.7x |
| 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 | 3.7x |
| Country Club (India) ($COUNCLB) | 2.0x | 1.8x | 3.2x | 3.5x | - |
| |
|---|
| Median (19 companies) | 1.8x | 2.0x | 0.9x | 0.3x | 0.3x |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x |
