Nitesh Estates reports 3,184% CAPEX growth in 2016 while 11.8% Revenue decline
28-05-2016 • About Nitesh Estates (
$NITESHEST) • By InTwits
Nitesh Estates reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has unprofitable business model: ROIC is -0.6%
- It operates with high leverage: Net Debt/EBITDA is 151.9x while industry average is 10.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 11.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 82.8% to 86.9% in FY2016.
Net Income margin dropped on 29.5 pp from 0.82% to -28.7% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 105% in FY2016. CAPEX/Revenue jumped on 65.0 pp from 39.7% in FY2013 to 105% in FY2016. Average CAPEX/Revenue for the last three years was 35.9%. Battling declining revenue the company made large investments to CAPEX (3,457% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.6%) and ROE (-25.9%). ROIC decreased on 9.8 pp from 9.2% to -0.59% in FY2016. ROE dropped on 26.7 pp from 0.73% to -25.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 151.9x and Debt / EBITDA is 156.9x. Net Debt / EBITDA jumped on 146.0x from 5.9x to 151.9x in FY2016. Debt surged on 189% while cash surged on 39.7%.
Nitesh Estates has short term refinancing risk: cash is only 6.3% of short term debt.
Financial and operational results
Nitesh Estates ($NITESHEST) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,162 | 829 | 2,976 | 2,875 | 2,535 | -11.8% |
| EBITDA | 5 | -478 | 590 | 666 | 77 | -88.5% |
| Net Income | 3 | -1,421 | 52 | 24 | -727 | -3,182.4% |
Balance Sheet
|
|---|
| Cash | 182 | 279 | 364 | 280 | 391 | 39.7% |
| Short Term Debt | 1,121 | 2,356 | 3,009 | 3,825 | 6,202 | 62.2% |
| Long Term Debt | 127 | 353 | 352 | 351 | 5,850 | 1,567.9% |
Cash flow
|
|---|
| Capex | | 329 | 2 | 81 | 2,655 | 3,184.5% |
Ratios
|
|---|
| Revenue growth | -6.3% | -28.7% | 259.1% | -3.4% | -11.8% | |
| EBITDA growth | -93.0% | -10,232.3% | -223.3% | 12.9% | -88.5% | |
|
|---|
| EBITDA Margin | 0.4% | -57.7% | 19.8% | 23.2% | 3.0% | -20.1% |
| Net Income Margin | 0.3% | -171.4% | 1.8% | 0.8% | -28.7% | -29.5% |
| CAPEX, % of revenue | | 39.7% | 0.1% | 2.8% | 104.7% | 101.9% |
|
|---|
| ROIC | -0.2% | -8.4% | 9.0% | 9.2% | -0.6% | -9.8% |
| ROE | 0.1% | -36.2% | 1.6% | 0.7% | -25.9% | -26.7% |
| Net Debt/EBITDA | 225.8x | | 5.1x | 5.9x | 151.9x | 146.0x |
Peers in Realty
Below you can find Nitesh Estates 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 ($GODREJPROP) | - | 34.7% | 13.7% | 56.3% | 35.9% |
| |
|---|
| Median (34 companies) | -16.0% | 5.6% | -4.5% | 13.2% | 3.1% |
|---|
| Nitesh Estates ($NITESHEST) | - | -28.7% | 259.1% | -3.4% | -11.8% |
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% | - |
| 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% | 19.4% | 20.1% |
|---|
| Nitesh Estates ($NITESHEST) | 0.4% | -57.7% | 19.8% | 23.2% | 3.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($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) | 4.8% | 2.3% | 3.7% | 2.3% | 2.8% |
|---|
| Nitesh Estates ($NITESHEST) | - | 39.7% | 0.1% | 2.8% | 104.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($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% | 5.6% | 6.8% | 7.2% |
|---|
| Nitesh Estates ($NITESHEST) | -0.2% | -8.4% | 9.0% | 9.2% | -0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Realty ($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) | 5.1x | 4.8x | 4.9x | 4.0x | 4.1x |
|---|
| Nitesh Estates ($NITESHEST) | 225.8x | - | 5.1x | 5.9x | 151.9x |
