Jaiprakash Power Ventures CAPEX dropped on 34.8% while Revenue jumped on 11.1%
28-05-2016 • About Jaiprakash Power Ventures (
$JPPOWER) • By InTwits
Jaiprakash Power Ventures reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jaiprakash Power Ventures is a fast growth stock: FY2016 revenue growth was 11.1%, 5 year revenue CAGR was 41.1% at FY2016 ROIC 4.7%
- Jaiprakash Power Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 226.2%. At the same time it's a lot of higher than industry average of 32.3%.
- CAPEX is quite volatile: ₹27,443m in FY2016, ₹42,082m in FY2015, ₹61,635m in FY2014, ₹84,070m in FY2013, ₹61,211m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.7%
- It operates with high leverage: Net Debt/EBITDA is 10.7x while industry average is 7.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Jaiprakash Power Ventures's Revenue surged on 11.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.1 pp from 19.1% to 27.2% in FY2016. EBITDA Margin followed a declining trend at -7.6 pp per annum in FY2012-FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin dropped on 11.2 pp from 4.1% to -7.1% in FY2016. Net Income margin followed a declining trend at -7.4 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 66.7% in FY2016. The company's CAPEX/Revenue dropped on 275 pp from 342% in FY2013 to 66.7% in FY2016. It's average CAPEX/Revenue for the last three years was 137%. To secure its fast growth Jaiprakash Power Ventures made large investments to CAPEX (117% of EBITDA). CAPEX as a % of Revenue declined at -85.3 pp per annum in the last 5 years.
Return on investment
The company operates at low but positive ROIC (4.7%) and negative ROE (-3.9%). ROIC showed almost no change in FY2016. ROE decreased on 6.1 pp from 2.3% to -3.9% in FY2016. ROE stuck to a declining trend at -2.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.7x and Debt / EBITDA is 10.7x. Net Debt / EBITDA dropped on 2.7x from 13.4x to 10.7x in FY2016. Debt dropped on 21.2% while cash dropped on 78.6%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 16.7x and was declining since that time.
Jaiprakash Power Ventures has short term refinancing risk: cash is only 4.0% of short term debt.
Management team
The company's CFO is Suren Jain. Suren Jain has 10 years tenure at the company.
Financial and operational results
Jaiprakash Power Ventures ($JPPOWER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,156 | 24,587 | 26,812 | 37,040 | 41,144 | 11.1% |
| SG&A | | | | 9 | 4 | -52.3% |
| EBITDA | 14,818 | 17,348 | 16,109 | 23,434 | 23,551 | 0.5% |
| Net Income | 4,007 | 3,512 | 329 | 1,511 | -2,910 | -292.6% |
Balance Sheet
|
|---|
| Cash | 2,697 | 2,715 | 5,270 | 6,554 | 1,404 | -78.6% |
| Short Term Debt | 17,383 | 22,480 | 32,283 | 54,615 | 35,413 | -35.2% |
| Long Term Debt | 156,790 | 207,482 | 242,746 | 266,036 | 217,243 | -18.3% |
Cash flow
|
|---|
| Capex | 61,211 | 84,070 | 61,635 | 42,082 | 27,443 | -34.8% |
Ratios
|
|---|
| Revenue growth | 119.2% | 52.2% | 9.0% | 38.1% | 11.1% | |
| EBITDA growth | 126.9% | 17.1% | -7.1% | 45.5% | 0.5% | |
|
|---|
| EBITDA Margin | 91.7% | 70.6% | 60.1% | 63.3% | 57.2% | -6.0% |
| SG&A, % of revenue | | | | 0.0% | 0.0% | -0.0% |
| Net Income Margin | 24.8% | 14.3% | 1.2% | 4.1% | -7.1% | -11.2% |
| CAPEX, % of revenue | 378.9% | 341.9% | 229.9% | 113.6% | 66.7% | -46.9% |
|
|---|
| ROIC | 6.0% | 6.0% | 4.2% | 4.9% | 4.7% | -0.2% |
| ROE | 7.5% | 5.9% | 0.5% | 2.3% | -3.9% | -6.1% |
| Net Debt/EBITDA | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x | -2.7x |
Peers in Electric Utilities
Below you can find Jaiprakash Power Ventures benchmarking vs. other companies in Electric Utilities 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 |
|---|
| Bf Utilities ($BFUTILITIE) | 41.4% | 9.2% | 20.6% | 117.9% | - |
| Adani Power ($ADANIPOWER) | - | 65.7% | 128.0% | 21.7% | 34.1% |
| Torrent Power ($TORNTPOWER) | - | 9.9% | 5.6% | 19.8% | 12.4% |
| Ptc India ($PTC) | - | 14.2% | 31.5% | 14.9% | 0.6% |
| Power Grid Corporation Of India ($POWERGRID) | - | 27.2% | 18.9% | 12.8% | 21.0% |
| |
|---|
| Median (17 companies) | 22.8% | 14.2% | 8.4% | 6.1% | 2.6% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | - | 52.2% | 9.0% | 38.1% | 11.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 83.7% | 85.6% | 84.9% | 85.8% | 87.0% |
| Orient Green Power Company ($GREENPOWER) | 24.4% | 53.3% | 57.8% | 82.8% | 86.9% |
| Bf Utilities ($BFUTILITIE) | 43.9% | 55.1% | 61.2% | 72.2% | - |
| Nhpc ($NHPC) | 71.4% | 66.5% | 59.3% | 63.4% | 59.9% |
| Energy Development Company ($ENERGYDEV) | - | - | - | 44.3% | - |
| |
|---|
| Median (18 companies) | 24.4% | 24.7% | 25.0% | 22.3% | 27.8% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 91.7% | 70.6% | 60.1% | 63.3% | 57.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 184.3% | 172.4% | 173.4% | 169.8% | 120.3% |
| Ksk Energy Ventures ($KSK) | 161.9% | 80.3% | 57.0% | 57.4% | - |
| Nava Bharat Ventures ($NBVENTURES) | 69.0% | 30.5% | 70.6% | 55.3% | - |
| Gvk Power & Infrastructure ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
| Gmr Infrastructure ($GMRINFRA) | 139.1% | 104.6% | 53.0% | 34.8% | - |
| |
|---|
| Median (15 companies) | 67.4% | 39.8% | 30.3% | 19.3% | 10.6% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 378.9% | 341.9% | 229.9% | 113.6% | 66.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bf Utilities ($BFUTILITIE) | 1.9% | 4.5% | 6.0% | 17.2% | - |
| Alstom T&D India ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| Ptc India ($PTC) | 11.2% | 10.4% | 13.6% | 12.3% | 13.6% |
| Torrent Power ($TORNTPOWER) | 19.0% | 7.3% | 4.9% | 8.1% | 12.2% |
| Power Grid Corporation Of India ($POWERGRID) | 8.3% | 8.8% | 8.4% | 7.7% | 8.4% |
| |
|---|
| Median (19 companies) | 4.8% | 5.4% | 5.5% | 6.2% | 8.4% |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 6.0% | 6.0% | 4.2% | 4.9% | 4.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | - |
| Gvk Power & Infrastructure ($GVKPIL) | 19.1x | 23.9x | 20.1x | 20.2x | 14.2x |
| Gmr Infrastructure ($GMRINFRA) | 19.5x | 15.1x | 16.7x | 17.7x | - |
| Lanco Infratech ($LITL) | 16.3x | 12.9x | 19.2x | 17.5x | 18.1x |
| Reliance Infrastructure ($RELINFRA) | 6.2x | 7.3x | 8.4x | 10.9x | 5.8x |
| |
|---|
| Median (18 companies) | 8.6x | 6.6x | 6.2x | 6.1x | 5.0x |
|---|
| Jaiprakash Power Ventures ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x |
