Atlanta Net Debt / EBITDA jumped on 64.1x from 7.6x to 71.7x in 2016 and Debt increased on 7.3%
27-05-2016 • About Atlanta (
$ATLANTA) • By InTwits
Atlanta reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Atlanta is a company in decline: FY2016 revenue growth was -70.5%, 5 years revenue CAGR was -8.6%
- EBITDA Margin is declining: 8.2% in FY2016 vs. 21.4% in FY2015 vs. 28.5% in FY2012
- EBITDA Margin is quite volatile: 8.2% in FY2016, 21.4% in FY2015, 30.8% in FY2014, 34.6% in FY2013, 28.5% in FY2012
- Atlanta has high CAPEX intensity: 5 year average CAPEX/Revenue was 75.1%. At the same time it's a lot of higher than industry average of 10.6%.
- CAPEX is quite volatile: ₹17m in FY2016, ₹69m in FY2015, ₹90m in FY2014, ₹24m in FY2013, ₹4,831m in FY2012
- The company has potentially unprofitable business model: ROIC is 0.5%
- It operates with high leverage: Net Debt/EBITDA is 71.7x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Atlanta's Revenue dropped on 70.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from 6.3% to 10.0% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 34.6% and was declining since that time.
Net Income margin dropped on 33.8 pp from 8.9% to -24.8% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 15.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Atlanta's CAPEX/Revenue was 1.0% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low but positive ROIC (0.5%) and negative ROE (-5.6%). ROIC decreased on 6.5 pp from 6.9% to 0.47% in FY2016. ROE dropped on 12.6 pp from 7.0% to -5.6% in FY2016. During FY2012-FY2016 ROIC topped in FY2014 at 8.7% and was declining since that time. During FY2012-FY2016 ROE topped in FY2014 at 8.8% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 71.7x and Debt / EBITDA is 72.7x. Net Debt / EBITDA surged on 64.1x from 7.6x to 71.7x in FY2016. Debt increased on 7.3% while cash increased slightly on 1.6%. During the last 5 years Net Debt/EBITDA bottomed in FY2013 at 4.8x and was growing since that time.
Atlanta has short term refinancing risk: cash is only 3.0% of short term debt.
Financial and operational results
Atlanta ($ATLANTA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,306 | 2,810 | 3,599 | 5,406 | 1,593 | -70.5% |
| EBITDA | 372 | 973 | 1,108 | 1,157 | 131 | -88.6% |
| Net Income | -76 | -39 | 540 | 483 | -395 | -181.7% |
Balance Sheet
|
|---|
| Cash | 221 | 61 | 257 | 130 | 132 | 1.6% |
| Short Term Debt | 746 | 1,022 | 1,755 | 2,030 | 4,433 | 118.4% |
| Long Term Debt | 3,461 | 3,688 | 5,579 | 6,864 | 5,108 | -25.6% |
Cash flow
|
|---|
| Capex | 4,831 | 24 | 90 | 69 | 17 | -76.0% |
Ratios
|
|---|
| Revenue growth | -47.6% | 115.1% | 28.1% | 50.2% | -70.5% | |
| EBITDA growth | -66.2% | 161.9% | 13.9% | 4.4% | -88.6% | |
|
|---|
| EBITDA Margin | 28.5% | 34.6% | 30.8% | 21.4% | 8.2% | -13.2% |
| Net Income Margin | -5.8% | -1.4% | 15.0% | 8.9% | -24.8% | -33.8% |
| CAPEX, % of revenue | 370.0% | 0.8% | 2.5% | 1.3% | 1.0% | -0.2% |
|
|---|
| ROIC | 5.0% | 8.6% | 8.7% | 6.9% | 0.5% | -6.5% |
| ROE | -2.7% | -1.0% | 8.8% | 7.0% | -5.6% | -12.6% |
| Net Debt/EBITDA | 10.7x | 4.8x | 6.4x | 7.6x | 71.7x | 64.1x |
Peers in Construction & Engineering
Below you can find Atlanta benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| 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% |
| Spml Infra ($SPMLINFRA) | - | 19.3% | 6.6% | 35.0% | 11.6% |
| |
|---|
| Median (32 companies) | 4.2% | 6.7% | 6.6% | -0.0% | -2.1% |
|---|
| Atlanta ($ATLANTA) | - | 115.1% | 28.1% | 50.2% | -70.5% |
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 ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% |
| |
|---|
| Median (36 companies) | 11.9% | 11.2% | 10.2% | 10.1% | 10.5% |
|---|
| Atlanta ($ATLANTA) | 28.5% | 34.6% | 30.8% | 21.4% | 8.2% |
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 ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | 25.2% |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| |
|---|
| Median (23 companies) | 7.3% | 8.6% | 6.9% | 3.2% | 3.5% |
|---|
| Atlanta ($ATLANTA) | 370.0% | 0.8% | 2.5% | 1.3% | 1.0% |
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 ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.1% | 5.6% | 6.6% | 7.2% |
|---|
| Atlanta ($ATLANTA) | 5.0% | 8.6% | 8.7% | 6.9% | 0.5% |
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 ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x |
| |
|---|
| Median (30 companies) | 4.5x | 5.7x | 6.1x | 2.9x | 3.0x |
|---|
| Atlanta ($ATLANTA) | 10.7x | 4.8x | 6.4x | 7.6x | 71.7x |
