Housing Development & Infrastructure reports 21.7% Net Income growth in 2016 and 12.8% Revenue growth
28-05-2016 • About Housing Development & Infrastructure (
$HDIL) • By InTwits
Housing Development & Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Housing Development & Infrastructure has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: ₹319m in FY2016, ₹0m in FY2015, ₹235m in FY2014, ₹27m in FY2013, ₹135m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Housing Development & Infrastructure's Revenue jumped on 12.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.66 pp from 18.0% to 17.3% in FY2016.
Net Income margin increased slightly on 1.7 pp from 21.4% to 23.1% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 7.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Housing Development & Infrastructure had CAPEX/Revenue of 2.8%. The company's CAPEX/Revenue increased on 2.5 pp from 0.26% in FY2013 to 2.8% in FY2016.
Return on investment
The company operates at low ROIC (5.4%) and ROE (2.4%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. During FY2012-FY2016 ROE bottomed in FY2013 at 0.71% and was growing since that time.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 4.0x to 3.6x in FY2016. Debt decreased on 7.7% while cash jumped on 410%.
Housing Development & Infrastructure has short term refinancing risk: cash is only 6.7% of short term debt.
Management team
Sarang Wadhawan is a Housing Development & Infrastructure's CEO. Sarang Wadhawan has spent 14 years with the company.
Financial and operational results
Housing Development & Infrastructure ($HDIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,925 | 10,128 | 8,723 | 10,225 | 11,536 | 12.8% |
| EBITDA | 15,101 | 4,112 | 8,943 | 8,063 | 7,888 | -2.2% |
| Net Income | 8,098 | 733 | 1,776 | 2,187 | 2,661 | 21.7% |
Balance Sheet
|
|---|
| Cash | 367 | 103 | 231 | 275 | 1,405 | 409.9% |
| Short Term Debt | 28,496 | 27,686 | 23,843 | 21,739 | 20,846 | -4.1% |
| Long Term Debt | 12,468 | 12,503 | 11,271 | 10,617 | 9,021 | -15.0% |
Cash flow
|
|---|
| Capex | 135 | 27 | 235 | 0 | 319 | |
Ratios
|
|---|
| Revenue growth | 7.9% | -49.2% | -13.9% | 17.2% | 12.8% | |
| EBITDA growth | -2.3% | -72.8% | 117.5% | -9.8% | -2.2% | |
|
|---|
| EBITDA Margin | 75.8% | 40.6% | 102.5% | 78.9% | 68.4% | -10.5% |
| Net Income Margin | 40.6% | 7.2% | 20.4% | 21.4% | 23.1% | 1.7% |
| CAPEX, % of revenue | 0.7% | 0.3% | 2.7% | 0.0% | 2.8% | |
|
|---|
| ROIC | 9.8% | 2.2% | 5.5% | 5.4% | 5.4% | -0.0% |
| ROE | 8.2% | 0.7% | 1.7% | 2.0% | 2.4% | 0.4% |
| Net Debt/EBITDA | 2.7x | 9.7x | 3.9x | 4.0x | 3.6x | -0.4x |
Peers in Realty
Below we provide Housing Development & Infrastructure benchmarking against other companies in Realty 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 |
|---|
| 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 ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -16.0% | 5.6% | -1.8% | 11.4% | 1.4% |
|---|
| Housing Development & Infrastructure ($HDIL) | - | -49.2% | -13.9% | 17.2% | 12.8% |
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% | - |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| The Phoenix Mills ($PHOENIXLTD) | 54.7% | 56.2% | 46.9% | 46.2% | 47.5% |
| |
|---|
| Median (43 companies) | 19.4% | 13.4% | 19.8% | 19.4% | 17.1% |
|---|
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | 68.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($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) | 4.9% | 2.6% | 3.7% | 2.5% | 2.9% |
|---|
| Housing Development & Infrastructure ($HDIL) | 0.7% | 0.3% | 2.7% | 0.0% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($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) | 5.7% | 5.1% | 5.7% | 6.8% | 7.2% |
|---|
| Housing Development & Infrastructure ($HDIL) | 9.8% | 2.2% | 5.5% | 5.4% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($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 | - |
| Ansal Properties & Infrastructure ($ANSALAPI) | 12.8x | 11.9x | 11.4x | 16.6x | 13.3x |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | - |
| |
|---|
| Median (37 companies) | 5.3x | 4.8x | 5.0x | 4.0x | 4.4x |
|---|
| Housing Development & Infrastructure ($HDIL) | 2.7x | 9.7x | 3.9x | 4.0x | 3.6x |
