Jmc Projects (India) EBITDA surged on 15.8% and Revenue increased on 7.0%
27-05-2016 • About Jmc Projects (India) (
$JMCPROJECT) • By InTwits
Jmc Projects (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Jmc Projects (India) is a growth stock: FY2016 revenue growth was 7.0%, 5 year revenue CAGR was 13.9% at FY2016 ROIC 7.2%
- Jmc Projects (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: ₹960m in FY2016, ₹794m in FY2015, ₹5,025m in FY2014, ₹420m in FY2013, ₹921m in FY2012
- The company has business model with low profitability: ROIC is 7.2%
- It operates with high leverage: Net Debt/EBITDA is 7.5x 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
The company's Revenue increased on 7.0%. During the last 5 years Revenue growth bottomed in FY2015 at -7.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.1 pp from 5.7% to 7.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 4.3% and was growing since that time.
Net Income margin decreased slightly on 1.6 pp from -0.98% to -2.6% in FY2016. Net Income margin followed a declining trend at -1.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.6% in FY2016. The company's CAPEX/Revenue increased slightly on 2.0 pp from 1.7% in FY2013 to 3.6% in FY2016. For the last three years the average CAPEX/Revenue was 8.6%.
Return on investment
The company operates at low but positive ROIC (7.2%) and negative ROE (-15.3%). ROIC increased slightly on 1.2 pp from 6.1% to 7.2% in FY2016. ROE decreased on 9.7 pp from -5.6% to -15.3% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 4.3% and was growing since that time. ROE declined at -6.1 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 7.5x Net Debt / EBITDA and 7.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 8.7x to 7.5x in FY2016. Debt increased slightly on 0.55% while cash dropped on 34.0%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 9.2x and was declining since that time.
Jmc Projects (India) has short term refinancing risk: cash is only 3.7% of short term debt.
Financial and operational results
Jmc Projects (India) ($JMCPROJECT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,654 | 25,424 | 26,637 | 24,698 | 26,417 | 7.0% |
| SG&A | | | | | 1 | |
| EBITDA | 1,417 | 1,097 | 1,618 | 2,291 | 2,653 | 15.8% |
| Net Income | 452 | 86 | -106 | -243 | -694 | |
Balance Sheet
|
|---|
| Cash | 28 | 342 | 256 | 209 | 138 | -34.0% |
| Short Term Debt | 1,152 | 1,644 | 2,157 | 3,788 | 3,739 | -1.3% |
| Long Term Debt | 3,098 | 6,973 | 12,915 | 16,259 | 16,419 | 1.0% |
Cash flow
|
|---|
| Capex | 921 | 420 | 5,025 | 794 | 960 | 20.9% |
Ratios
|
|---|
| Revenue growth | 49.8% | 23.1% | 4.8% | -7.3% | 7.0% | |
| EBITDA growth | 21.0% | -22.6% | 47.5% | 41.6% | 15.8% | |
|
|---|
| EBITDA Margin | 6.9% | 4.3% | 6.1% | 9.3% | 10.0% | 0.8% |
| SG&A, % of revenue | | | | | 0.0% | |
| Net Income Margin | 2.2% | 0.3% | -0.4% | -1.0% | -2.6% | -1.6% |
| CAPEX, % of revenue | 4.5% | 1.7% | 18.9% | 3.2% | 3.6% | 0.4% |
|
|---|
| ROIC | 13.9% | 5.2% | 4.3% | 6.1% | 7.2% | 1.2% |
| ROE | 11.5% | 2.1% | -2.4% | -5.6% | -15.3% | -9.7% |
| Net Debt/EBITDA | 3.0x | 7.5x | 9.2x | 8.7x | 7.5x | -1.1x |
Peers in Construction & Engineering
Below we provide Jmc Projects (India) 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 ($ATLANTA) | - | 115.1% | 28.1% | 50.2% | -70.5% |
| |
|---|
| Median (32 companies) | 4.2% | 6.7% | 7.1% | 1.2% | -6.6% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | - | 23.1% | 4.8% | -7.3% | 7.0% |
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 ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% |
| |
|---|
| Median (36 companies) | 12.4% | 11.3% | 10.7% | 10.3% | 10.5% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 6.9% | 4.3% | 6.1% | 9.3% | 10.0% |
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 ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| |
|---|
| Median (23 companies) | 7.7% | 8.6% | 4.0% | 3.1% | 3.3% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 4.5% | 1.7% | 18.9% | 3.2% | 3.6% |
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 ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.5% | 6.3% | 6.8% | 6.3% |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 13.9% | 5.2% | 4.3% | 6.1% | 7.2% |
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 ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x |
| |
|---|
| Median (30 companies) | 4.7x | 5.3x | 5.9x | 2.9x | 3.0x |
|---|
| Jmc Projects (India) ($JMCPROJECT) | 3.0x | 7.5x | 9.2x | 8.7x | 7.5x |
