Ansal Properties & Infrastructure CAPEX jumped on 123% while Revenue dropped on 33.4%
28-05-2016 • About Ansal Properties & Infrastructure (
$ANSALAPI) • By InTwits
Ansal Properties & Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ansal Properties & Infrastructure is a company in decline: FY2016 revenue growth was -33.4%, 5 years revenue CAGR was -10.3%
- EBITDA Margin is quite volatile: 17.1% in FY2016, 8.2% in FY2015, 7.5% in FY2014, 10.0% in FY2013, 10.5% in FY2012
- Ansal Properties & Infrastructure has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's in pair with industry average of 10.7%
- CAPEX is quite volatile: ₹1,437m in FY2016, ₹645m in FY2015, ₹763m in FY2014, ₹1,024m in FY2013, ₹2,139m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.1%
- It operates with high leverage: Net Debt/EBITDA is 13.3x while industry average is 10.4x
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 dropped on 33.4%. During FY2012-FY2016 Revenue growth topped in FY2014 at 29.3% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.9 pp from 8.2% to 17.1% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 7.5% and was growing since that time.
Net Income margin decreased slightly on 1.5 pp from 1.8% to 0.32% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 19.4%. CAPEX/Revenue surged on 10.1 pp from 9.4% in FY2013 to 19.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 10.2%. The company has spent a lot to CAPEX (114% of EBITDA) which didn't stop revenue from falling. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 5.4% and was growing since that time.
Return on investment
The company operates at low ROIC (3.1%) and ROE (0.1%). ROIC increased slightly on 0.70 pp from 2.4% to 3.1% in FY2016. ROE decreased slightly on 1.1 pp from 1.3% to 0.15% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2015 at 2.4%.
Leverage (Debt)
Debt level is 13.3x Net Debt / EBITDA and 13.7x Debt / EBITDA. Net Debt / EBITDA dropped on 3.3x from 16.6x to 13.3x in FY2016. Debt increased on 8.2% while cash dropped on 46.9%.
Ansal Properties & Infrastructure has short term refinancing risk: cash is only 9.0% of short term debt.
Financial and operational results
Ansal Properties & Infrastructure ($ANSALAPI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,321 | 10,925 | 14,129 | 11,092 | 7,387 | -33.4% |
| EBITDA | 1,088 | 1,094 | 1,055 | 907 | 1,262 | 39.2% |
| Net Income | 51 | 48 | 59 | 205 | 24 | -88.4% |
Balance Sheet
|
|---|
| Cash | 758 | 827 | 869 | 942 | 500 | -46.9% |
| Short Term Debt | 8,051 | 7,622 | 4,810 | 4,451 | 5,567 | 25.1% |
| Long Term Debt | 6,647 | 6,242 | 8,043 | 11,585 | 11,778 | 1.7% |
Cash flow
|
|---|
| Capex | 2,139 | 1,024 | 763 | 645 | 1,437 | 122.8% |
Ratios
|
|---|
| Revenue growth | -18.7% | 5.9% | 29.3% | -21.5% | -33.4% | |
| EBITDA growth | -61.8% | 0.5% | -3.6% | -14.0% | 39.2% | |
|
|---|
| EBITDA Margin | 10.5% | 10.0% | 7.5% | 8.2% | 17.1% | 8.9% |
| Net Income Margin | 0.5% | 0.4% | 0.4% | 1.8% | 0.3% | -1.5% |
| CAPEX, % of revenue | 20.7% | 9.4% | 5.4% | 5.8% | 19.4% | 13.6% |
|
|---|
| ROIC | 3.3% | 3.0% | 2.8% | 2.4% | 3.1% | 0.7% |
| ROE | 0.3% | 0.3% | 0.4% | 1.3% | 0.1% | -1.1% |
| Net Debt/EBITDA | 12.8x | 11.9x | 11.4x | 16.6x | 13.3x | -3.3x |
Peers in Realty
Below you can find Ansal Properties & Infrastructure benchmarking vs. other companies in Realty 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 |
|---|
| Sspdl ($SSPDL) | - | -11.8% | -43.4% | 326.1% | -48.8% |
| Orbit Corporation ($ORBITCORP) | - | -21.9% | -88.0% | 275.1% | -98.6% |
| Ajmera Realty & Infra India ($AJMERA) | - | -61.7% | -1.8% | 109.9% | 92.0% |
| Prajay Engineers Syndicate ($PRAENG) | -21.1% | 42.0% | -30.1% | 62.8% | - |
| Godrej Properties ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -16.0% | 3.4% | -4.5% | 13.2% | 3.1% |
|---|
| Ansal Properties & Infrastructure ($ANSALAPI) | - | 5.9% | 29.3% | -21.5% | -33.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | - |
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | 68.4% |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| |
|---|
| Median (43 companies) | 20.1% | 18.1% | 20.1% | 22.6% | 20.1% |
|---|
| Ansal Properties & Infrastructure ($ANSALAPI) | 10.5% | 10.0% | 7.5% | 8.2% | 17.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | - |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | 15.6% |
| |
|---|
| Median (30 companies) | 4.7% | 2.3% | 3.5% | 2.3% | 2.8% |
|---|
| Ansal Properties & Infrastructure ($ANSALAPI) | 20.7% | 9.4% | 5.4% | 5.8% | 19.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | 27.1% |
| Poddar Developers ($PODDARDEV) | 3.9% | 2.6% | 12.9% | 19.1% | 7.5% |
| Lancor Holdings ($LANCORHOL) | 18.0% | 11.6% | 19.5% | 17.7% | - |
| Mahindra Lifespace Developers ($MAHLIFE) | 10.4% | 11.7% | 6.6% | 14.9% | 4.6% |
| Sobha Developers ($SOBHA) | 18.8% | 16.7% | 14.6% | 12.7% | 9.0% |
| |
|---|
| Median (50 companies) | 5.9% | 5.1% | 5.7% | 6.8% | 7.2% |
|---|
| Ansal Properties & Infrastructure ($ANSALAPI) | 3.3% | 3.0% | 2.8% | 2.4% | 3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | 51.1x |
| B.L.Kashyap And Sons ($BLKASHYAP) | 8.2x | 5.8x | 12.7x | 40.1x | 3.3x |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | - |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| Prozone Intu Properties ($PROZONINTU) | - | 8.6x | 13.0x | 11.9x | 8.7x |
| |
|---|
| Median (37 companies) | 5.1x | 4.8x | 4.9x | 4.0x | 4.1x |
|---|
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | 13.3x |
