Tgb Banquets And Hotels Debt dropped on 26.8% and EBITDA dropped on 21.3%
26-05-2016 • About Tgb Banquets And Hotels (
$TGBHOTELS) • By InTwits
Tgb Banquets And Hotels reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tgb Banquets And Hotels has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: ₹6m in FY2016, ₹45m in FY2015, ₹96m in FY2014, ₹142m in FY2013, ₹140m in FY2012
- The company has potentially unprofitable business model: ROIC is 1.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.7x 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 decreased on 2.3%. During FY2012-FY2016 Revenue growth bottomed in FY2015 at -10.7%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 21.6% to 17.4% in FY2016. During the last 5 years EBITDA Margin topped in FY2014 at 25.0% and was declining since that time.
Net Income margin decreased on 3.1 pp from -8.0% to -11.2% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 1.8% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Tgb Banquets And Hotels's CAPEX/Revenue was 0.44% in FY2016. Tgb Banquets And Hotels showed decline in CAPEX/Revenue of 8.2 pp from 8.7% in FY2013 to 0.44% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.3%. CAPEX as a % of Revenue followed a declining trend at -2.3 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low but positive ROIC (1.3%) and negative ROE (-12.5%). ROIC decreased slightly on 1.9 pp from 3.2% to 1.3% in FY2016. ROE decreased on 4.3 pp from -8.2% to -12.5% in FY2016. During the last 5 years ROIC topped in FY2013 at 8.9% and was declining since that time. During FY2012-FY2016 ROE topped in FY2013 at 2.1% and was declining since that time.
Leverage (Debt)
Debt level is 3.7x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 4.0x to 3.7x in FY2016. Debt dropped on 26.8% while cash increased on 3.7%.
Tgb Banquets And Hotels has short term refinancing risk: cash is only 29.0% of short term debt.
Financial and operational results
Tgb Banquets And Hotels ($TGBHOTELS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,525 | 1,640 | 1,564 | 1,397 | 1,365 | -2.3% |
| EBITDA | 323 | 387 | 392 | 302 | 238 | -21.3% |
| Net Income | 3 | 30 | 18 | -112 | -152 | |
Balance Sheet
|
|---|
| Cash | 86 | 152 | 260 | 51 | 52 | 3.7% |
| Short Term Debt | 336 | 333 | 286 | 368 | 181 | -50.8% |
| Long Term Debt | 959 | 978 | 1,043 | 901 | 748 | -17.0% |
Cash flow
|
|---|
| Capex | 140 | 142 | 96 | 45 | 6 | -86.6% |
Ratios
|
|---|
| Revenue growth | 24.9% | 7.5% | -4.6% | -10.7% | -2.3% | |
| EBITDA growth | 32.3% | 19.7% | 1.1% | -22.9% | -21.3% | |
|
|---|
| EBITDA Margin | 21.2% | 23.6% | 25.0% | 21.6% | 17.4% | -4.2% |
| Net Income Margin | 0.2% | 1.8% | 1.2% | -8.0% | -11.2% | -3.1% |
| CAPEX, % of revenue | 9.2% | 8.7% | 6.2% | 3.2% | 0.4% | -2.8% |
|
|---|
| ROIC | 7.1% | 8.9% | 8.9% | 3.2% | 1.3% | -1.9% |
| ROE | 0.2% | 2.1% | 1.3% | -8.2% | -12.5% | -4.3% |
| Net Debt/EBITDA | 3.7x | 3.0x | 2.7x | 4.0x | 3.7x | -0.3x |
Peers in Hotels
Below we provide Tgb Banquets And Hotels 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 ($EIHOTEL) | - | 4.4% | 5.3% | 7.9% | -0.6% |
| |
|---|
| Median (15 companies) | 15.7% | 12.7% | 5.9% | 3.4% | 3.8% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | - | 7.5% | -4.6% | -10.7% | -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) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.9% | 22.6% | 20.0% | 20.0% | 19.5% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 21.2% | 23.6% | 25.0% | 21.6% | 17.4% |
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 ($EIHOTEL) | 13.6% | 12.0% | 7.1% | 9.0% | 5.5% |
| |
|---|
| Median (11 companies) | 30.8% | 22.1% | 11.4% | 7.5% | 5.5% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 9.2% | 8.7% | 6.2% | 3.2% | 0.4% |
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) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | - |
| |
|---|
| Median (29 companies) | 5.4% | 4.7% | 2.8% | 2.5% | 4.6% |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.1% | 8.9% | 8.9% | 3.2% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x |
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | - |
| Asian Hotels (East) ($AHLEAST) | -0.0x | 9.8x | 8.9x | 7.1x | 2.7x |
| Oriental Hotels ($ORIENTHOT) | 4.3x | 4.6x | 6.0x | 5.5x | 6.5x |
| Country Club (India) ($COUNCLB) | 2.0x | 1.8x | 3.2x | 3.5x | - |
| |
|---|
| Median (19 companies) | 1.8x | 2.0x | 0.9x | 0.3x | 0.3x |
|---|
| Tgb Banquets And Hotels ($TGBHOTELS) | 3.7x | 3.0x | 2.7x | 4.0x | 3.7x |
