Asian Hotels (North) Net Debt / EBITDA dropped on 8.9x from 24.8x to 15.9x in 2016 while Revenue increased on 3.5%
27-05-2016 • About Asian Hotels (North) (
$ASIANHOTNR) • By InTwits
Asian Hotels (North) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Asian Hotels (North) has high CAPEX intensity: 5 year average CAPEX/Revenue was 38.2%. At the same time it's a lot of higher than industry average of 10.7%.
- CAPEX is quite volatile: ₹644m in FY2016, ₹840m in FY2015, ₹847m in FY2014, ₹1,931m in FY2013, ₹1,089m in FY2012
- The company has potentially unprofitable business model: ROIC is 2.5%
- It operates with high leverage: Net Debt/EBITDA is 15.9x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Asian Hotels (North)'s Revenue increased on 3.5%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -29.0% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.9 pp from 18.5% to 29.4% in FY2016.
Net Income margin jumped on 14.2 pp from -21.8% to -7.6% in FY2016.
Investments (CAPEX, working capital and M&A)
Asian Hotels (North)'s CAPEX/Revenue was 26.8% in FY2016. CAPEX/Revenue dropped on 33.4 pp from 60.2% in FY2013 to 26.8% in FY2016. Average CAPEX/Revenue for the last three years was 33.4%. Asian Hotels (North) invested a large share of EBITDA (91.0%) to CAPEX. During the last 5 years CAPEX as a % of Revenue topped in FY2013 at 60.2% and was declining since that time.
Return on investment
The company operates at low but positive ROIC (2.5%) and negative ROE (-2.4%). ROIC increased slightly on 1.6 pp from 0.89% to 2.5% in FY2016. ROE increased on 4.1 pp from -6.5% to -2.4% in FY2016.
Leverage (Debt)
Debt level is 15.9x Net Debt / EBITDA and 16.2x Debt / EBITDA. Net Debt / EBITDA dropped on 8.9x from 24.8x to 15.9x in FY2016. Debt increased on 6.8% while cash jumped on 270%.
Asian Hotels (North) has short term refinancing risk: cash is only 12.1% of short term debt.
Financial and operational results
Asian Hotels (North) ($ASIANHOTNR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,535 | 3,208 | 2,278 | 2,325 | 2,407 | 3.5% |
| EBITDA | 382 | 734 | 614 | 430 | 708 | 64.5% |
| Net Income | -271 | 597 | -322 | -507 | -184 | |
Balance Sheet
|
|---|
| Cash | 119 | 74 | 333 | 49 | 180 | 269.5% |
| Short Term Debt | 962 | 1,515 | 2,269 | 1,963 | 1,486 | -24.3% |
| Long Term Debt | 10,025 | 6,621 | 7,534 | 8,746 | 9,950 | 13.8% |
Cash flow
|
|---|
| Capex | 1,089 | 1,931 | 847 | 840 | 644 | -23.3% |
Ratios
|
|---|
| Revenue growth | 15.7% | -9.2% | -29.0% | 2.1% | 3.5% | |
| EBITDA growth | -65.8% | 91.9% | -16.4% | -29.9% | 64.5% | |
|
|---|
| EBITDA Margin | 10.8% | 22.9% | 26.9% | 18.5% | 29.4% | 10.9% |
| Net Income Margin | -7.7% | 18.6% | -14.1% | -21.8% | -7.6% | 14.2% |
| CAPEX, % of revenue | 30.8% | 60.2% | 37.2% | 36.1% | 26.8% | -9.4% |
|
|---|
| ROIC | 0.2% | 2.2% | 2.8% | 0.9% | 2.5% | 1.6% |
| ROE | -3.5% | 7.4% | -3.9% | -6.5% | -2.4% | 4.1% |
| Net Debt/EBITDA | 28.4x | 11.0x | 15.4x | 24.8x | 15.9x | -8.9x |
Peers in Hotels
Below you can find Asian Hotels (North) 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 ($EIHOTEL) | - | 4.4% | 5.3% | 7.9% | -0.6% |
| |
|---|
| Median (15 companies) | 16.4% | 12.7% | 5.9% | 3.4% | 3.7% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | - | -9.2% | -29.0% | 2.1% | 3.5% |
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) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.9% | 22.6% | 20.0% | 20.8% | 18.2% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 10.8% | 22.9% | 26.9% | 18.5% | 29.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Oriental Hotels ($ORIENTHOT) | 24.3% | 17.7% | 13.1% | 7.5% | 6.5% |
| |
|---|
| Median (11 companies) | 26.0% | 17.6% | 8.8% | 4.9% | 5.0% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 30.8% | 60.2% | 37.2% | 36.1% | 26.8% |
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) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | - |
| |
|---|
| Median (29 companies) | 5.9% | 5.0% | 4.1% | 3.5% | 2.5% |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 0.2% | 2.2% | 2.8% | 0.9% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x |
| Asian Hotels (East) ($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) ($COUNCLB) | 2.0x | 1.8x | 3.2x | 3.5x | - |
| |
|---|
| Median (19 companies) | 1.8x | 2.0x | 0.9x | 0.3x | 0.3x |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | 15.9x |
