India Tourism Development Corporation reports 44.0% Net Income decline in 2016 while 1.1 pp EBITDA Margin growth from 2.8% to 3.9%
30-05-2016 • About India Tourism Development Corporation (
$ITDC) • By InTwits
India Tourism Development Corporation reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 3.9% in FY2016 vs. 2.8% in FY2015 vs. 0.0% in FY2012
- India Tourism Development Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 6.5%
- CAPEX is quite volatile: ₹84m in FY2016, ₹58m in FY2015, ₹34m in FY2014, ₹44m in FY2013, ₹53m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
India Tourism Development Corporation's Revenue decreased on 6.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 2.8% to 3.9% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at -4.3% and was growing since that time.
Net Income margin decreased on 2.6 pp from 6.5% to 3.9% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.8% in FY2016. CAPEX/Revenue increased slightly on 0.81 pp from 1.0% in FY2013 to 1.8% in FY2016. It's average CAPEX/Revenue for the last three years was 1.3%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.73% and was growing since that time.
Return on investment
The company operates at low ROIC (3.1%) and ROE (5.9%). ROIC increased on 2.3 pp from 0.81% to 3.1% in FY2016. ROE decreased on 4.8 pp from 10.7% to 5.9% in FY2016. During the last 5 years ROIC bottomed in FY2013 at -7.7% and was growing since that time.
Leverage (Debt)
Debt level is -15.8x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt surged on 12.3% while cash jumped on 640%.
India Tourism Development Corporation has no short term refinancing risk: cash is higher than short term debt (44,515.7%).
Valuation and dividends
India Tourism Development Corporation's trades at EV/EBITDA 102.4x and P/E 117.4x while industy averages are 17.8x and 21.9x. India Tourism Development Corporation's EV/(EBITDA-CAPEX) is 195.2x with the industry average at 22.8x.
Financial and operational results
India Tourism Development Corporation ($ITDC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,137 | 4,270 | 4,576 | 4,904 | 4,573 | -6.7% |
| EBITDA | 2 | -183 | -120 | 138 | 177 | 28.2% |
| Net Income | 84 | 31 | 81 | 319 | 178 | -44.0% |
Balance Sheet
|
|---|
| Cash | 316 | 346 | 279 | 384 | 2,842 | 639.7% |
| Short Term Debt | 0 | 0 | 0 | 3 | 6 | 140.9% |
| Long Term Debt | 17 | 17 | 33 | 35 | 36 | 2.6% |
Cash flow
|
|---|
| Capex | 53 | 44 | 34 | 58 | 84 | 45.3% |
Ratios
|
|---|
| Revenue growth | 6.9% | 3.2% | 7.1% | 7.2% | -6.7% | |
| EBITDA growth | -100.6% | -10,448.8% | -34.3% | -215.2% | 28.2% | |
|
|---|
| EBITDA Margin | 0.0% | -4.3% | -2.6% | 2.8% | 3.9% | 1.1% |
| Net Income Margin | 2.0% | 0.7% | 1.8% | 6.5% | 3.9% | -2.6% |
| CAPEX, % of revenue | 1.3% | 1.0% | 0.7% | 1.2% | 1.8% | 0.7% |
|
|---|
| ROIC | -2.0% | -7.7% | -5.7% | 0.8% | 3.1% | 2.3% |
| ROE | 3.0% | 1.1% | 2.8% | 10.7% | 5.9% | -4.8% |
| Net Debt/EBITDA | -168.9x | | | -2.5x | -15.8x | -13.3x |
Peers in Hotels
Below we provide India Tourism Development Corporation benchmarking against other companies in Hotels 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 |
|---|
| Mahindra Holidays & Resorts India ($MHRIL) | - | 27.8% | 10.5% | -8.0% | 97.2% |
| The Byke Hospitality ($THEBYKE) | - | 105.7% | 54.3% | 16.5% | 27.6% |
| Asian Hotels (West) ($AHLWEST) | - | -0.2% | 3.1% | 96.5% | 16.3% |
| Kamat Hotels (India) ($KAMATHOTEL) | - | 14.1% | -4.9% | -3.6% | 11.6% |
| Hotel Leelaventure ($HOTELEELA) | - | 12.7% | 11.4% | -11.4% | 3.8% |
| |
|---|
| Median (12 companies) | 16.4% | 12.7% | 5.5% | 3.1% | 3.7% |
|---|
| India Tourism Development Corporation ($ITDC) | - | 3.2% | 7.1% | 7.2% | -6.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Hotels ($JINDHOT) | - | - | - | 37.6% | - |
| Benares Hotels ($BENARAS) | - | - | - | 33.6% | - |
| Fomento Resorts & Hotels ($FOMEHOT) | - | - | - | 27.9% | - |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 25.9% | - |
| Country Club (India) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | - |
| |
|---|
| Median (20 companies) | 21.9% | 22.9% | 21.0% | 20.8% | 20.8% |
|---|
| India Tourism Development Corporation ($ITDC) | 0.0% | -4.3% | -2.6% | 2.8% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 30.8% | 60.2% | 37.2% | 36.1% | 26.8% |
| Mahindra Holidays & Resorts India ($MHRIL) | 26.0% | 26.5% | 15.4% | 18.0% | 12.6% |
| The Byke Hospitality ($THEBYKE) | 33.3% | 15.7% | 5.8% | 4.9% | 7.9% |
| Oriental Hotels ($ORIENTHOT) | 24.3% | 17.7% | 13.1% | 7.5% | 6.5% |
| Eih ($EIHOTEL) | 13.6% | 12.0% | 7.1% | 9.0% | 5.5% |
| |
|---|
| Median (9 companies) | 30.8% | 22.1% | 11.4% | 7.5% | 5.5% |
|---|
| India Tourism Development Corporation ($ITDC) | 1.3% | 1.0% | 0.7% | 1.2% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| The Byke Hospitality ($THEBYKE) | 5.3% | 14.5% | 22.6% | 24.1% | 32.0% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 15.9% | 19.6% |
| Mahindra Holidays & Resorts India ($MHRIL) | 13.4% | 22.2% | 16.3% | 6.3% | 10.0% |
| Eih ($EIHOTEL) | 5.5% | 4.5% | 5.8% | 6.3% | 6.6% |
| Asian Hotels (North) ($ASIANHOTNR) | 0.2% | 2.2% | 2.8% | 0.9% | 2.5% |
| |
|---|
| Median (23 companies) | 5.9% | 5.0% | 4.1% | 3.5% | 2.5% |
|---|
| India Tourism Development Corporation ($ITDC) | -2.0% | -7.7% | -5.7% | 0.8% | 3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x |
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | 15.9x |
| Oriental Hotels ($ORIENTHOT) | 4.3x | 4.6x | 6.0x | 5.5x | 6.5x |
| Tgb Banquets And Hotels ($TGBHOTELS) | 3.7x | 3.0x | 2.7x | 4.0x | 3.7x |
| Royal Orchid Hotels ($ROHLTD) | - | - | - | - | 2.7x |
| |
|---|
| Median (15 companies) | 2.0x | 2.1x | 1.0x | 0.7x | 0.3x |
|---|
| India Tourism Development Corporation ($ITDC) | -168.9x | - | - | -2.5x | -15.8x |
