Shristi Infrastructure Development Corporation revenue surged on 28.2% and EBITDA Margin showed almost no change
27-05-2016 • About Shristi Infrastructure Development Corporation (
$SHRISTI) • By InTwits
Shristi Infrastructure Development Corporation reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shristi Infrastructure Development Corporation has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.2%. At the same time it's a lot of higher than industry average of 10.6%.
- CAPEX is quite volatile: ₹498m in FY2016, ₹629m in FY2015, ₹215m in FY2014, ₹174m in FY2013, ₹0m in FY2012
- The company has potentially unprofitable business model: ROIC is 6.3%
- It operates with high leverage: Net Debt/EBITDA is 8.8x 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 surged on 28.2%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -2.3% and was accelerating since that time. EBITDA Margin showed almost no change in FY2016. During the last 5 years EBITDA Margin topped in FY2013 at 30.0% and was declining since that time.
Net Income margin decreased slightly on 0.52 pp from 1.7% to 1.1% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2014 at 1.8% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 25.2%. Shristi Infrastructure Development Corporation showed fast CAPEX/Revenue growth of 14.0 pp from 11.2% in FY2013 to 25.2% in FY2016. For the last three years the average CAPEX/Revenue was 26.7%. To secure its fast growth Shristi Infrastructure Development Corporation invested a large share of EBITDA (85.1%) to CAPEX.
Return on investment
The company operates at low ROIC (6.3%) and ROE (0.5%). ROIC increased slightly on 0.88 pp from 5.4% to 6.3% in FY2016. ROE showed almost no change in FY2016. ROIC grew at 0.33 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.8x and Debt / EBITDA is 9.0x. Net Debt / EBITDA dropped on 0.6x from 9.4x to 8.8x in FY2016. Debt surged on 18.7% while cash decreased on 5.9%.
Shristi Infrastructure Development Corporation has short term refinancing risk: cash is only 6.2% of short term debt.
Valuation and dividends
Shristi Infrastructure Development Corporation's trades at EV/EBITDA 13.5x and P/E 121.3x while industy averages are 17.8x and 21.9x. Shristi Infrastructure Development Corporation's EV/(EBITDA-CAPEX) is 90.7x with the industry average at 22.8x.
Financial and operational results
Shristi Infrastructure Development Corporation ($SHRISTI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,596 | 1,562 | 1,526 | 1,541 | 1,975 | 28.2% |
| EBITDA | 434 | 469 | 458 | 460 | 585 | 27.2% |
| Net Income | 12 | 12 | 27 | 26 | 23 | -11.7% |
Balance Sheet
|
|---|
| Cash | 77 | 37 | 50 | 88 | 83 | -5.9% |
| Short Term Debt | 2,878 | 2,085 | 1,096 | 1,105 | 1,332 | 20.6% |
| Long Term Debt | 2,309 | 1,960 | 2,587 | 3,311 | 3,908 | 18.0% |
Cash flow
|
|---|
| Capex | 0 | 174 | 215 | 629 | 498 | -20.8% |
Ratios
|
|---|
| Revenue growth | -1.5% | -2.1% | -2.3% | 1.0% | 28.2% | |
| EBITDA growth | -4.5% | 8.1% | -2.3% | 0.4% | 27.2% | |
|
|---|
| EBITDA Margin | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% | -0.2% |
| Net Income Margin | 0.8% | 0.8% | 1.8% | 1.7% | 1.1% | -0.5% |
| CAPEX, % of revenue | 0.0% | 11.2% | 14.1% | 40.8% | 25.2% | -15.6% |
|
|---|
| ROIC | 4.8% | 5.2% | 5.6% | 5.4% | 6.3% | 0.9% |
| ROE | 0.3% | 0.3% | 0.6% | 0.6% | 0.5% | -0.1% |
| Net Debt/EBITDA | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x | -0.6x |
Peers in Construction & Engineering
Below we provide Shristi Infrastructure Development Corporation 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 ($ATLANTA) | - | 115.1% | 28.1% | 50.2% | -70.5% |
| |
|---|
| Median (32 companies) | 4.2% | 6.9% | 7.1% | 0.2% | -6.6% |
|---|
| Shristi Infrastructure Development Corporation ($SHRISTI) | - | -2.1% | -2.3% | 1.0% | 28.2% |
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% | - |
| Atlanta ($ATLANTA) | 28.5% | 34.6% | 30.8% | 21.4% | 8.2% |
| |
|---|
| Median (36 companies) | 11.9% | 11.2% | 10.2% | 10.1% | 10.0% |
|---|
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% |
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% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| Welspun Projects ($WELPROJ) | 0.4% | - | 0.6% | 17.3% | - |
| |
|---|
| Median (23 companies) | 7.7% | 6.6% | 4.0% | 3.1% | 3.3% |
|---|
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | 25.2% |
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 ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.5% | 6.3% | 6.8% | 7.2% |
|---|
| Shristi Infrastructure Development Corporation ($SHRISTI) | 4.8% | 5.2% | 5.6% | 5.4% | 6.3% |
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 | - |
| Hindustan Construction Co ($HCC) | 18.8x | 20.3x | 12.3x | 9.3x | 6.4x |
| |
|---|
| Median (30 companies) | 4.5x | 5.3x | 5.9x | 2.9x | 3.0x |
|---|
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x |
