Mbl Infrastructures reports 83.2% CAPEX growth in 2016 and 19.4% Revenue growth
30-05-2016 • About Mbl Infrastructures (
$MBLINFRA) • By InTwits
Mbl Infrastructures reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mbl Infrastructures is a fast growth stock: FY2016 revenue growth was 19.4%, 5 year revenue CAGR was 18.5% at FY2016 ROIC 11.2%
- Mbl Infrastructures has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's in pair with industry average of 10.2%
- CAPEX is quite volatile: ₹3,463m in FY2016, ₹1,890m in FY2015, ₹2,065m in FY2014, ₹1,725m in FY2013, ₹882m in FY2012
- The company has business model with average profitability: ROIC is 11.2%
- It operates with high leverage: Net Debt/EBITDA is 5.2x while industry average is 92.4x
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 jumped on 19.4%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 12.1% to 10.8% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 14.8% in FY2016. CAPEX/Revenue increased on 2.1 pp from 12.7% in FY2013 to 14.8% in FY2016. It's average CAPEX/Revenue for the last three years was 12.0%. Mbl Infrastructures has spent a lot to CAPEX (136% of EBITDA) to fuel its growth.
Return on investment
The company operates at good ROE (12.7%) while ROIC is low (11.2%). ROIC decreased on 2.4 pp from 13.6% to 11.2% in FY2016. ROE decreased slightly on 1.8 pp from 14.5% to 12.7% in FY2016.
Leverage (Debt)
Debt level is 5.2x Net Debt / EBITDA and 5.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.8x from 4.4x to 5.2x in FY2016. Debt surged on 22.6% while cash dropped on 43.5%. Net Debt/EBITDA grew at 0.5x per annum in FY2012-FY2016.
Mbl Infrastructures has short term refinancing risk: cash is only 5.1% of short term debt.
Valuation and dividends
Mbl Infrastructures's trades at EV/EBITDA 7.3x and P/E 6.2x while industy averages are 17.8x and 21.9x.
Financial and operational results
Mbl Infrastructures ($MBLINFRA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12,653 | 13,554 | 17,663 | 19,618 | 23,424 | 19.4% |
| EBITDA | 1,679 | 1,438 | 1,882 | 2,372 | 2,540 | 7.1% |
| Net Income | 725 | 566 | 770 | 816 | 883 | 8.2% |
Balance Sheet
|
|---|
| Cash | 121 | 629 | 682 | 660 | 373 | -43.5% |
| Short Term Debt | 3,125 | 3,992 | 4,606 | 6,317 | 7,369 | 16.6% |
| Long Term Debt | 1,547 | 2,774 | 3,705 | 4,725 | 6,174 | 30.7% |
Cash flow
|
|---|
| Capex | 882 | 1,725 | 2,065 | 1,890 | 3,463 | 83.2% |
Ratios
|
|---|
| Revenue growth | 26.3% | 7.1% | 30.3% | 11.1% | 19.4% | |
| EBITDA growth | 22.4% | -14.4% | 30.9% | 26.0% | 7.1% | |
|
|---|
| EBITDA Margin | 13.3% | 10.6% | 10.7% | 12.1% | 10.8% | -1.2% |
| Net Income Margin | 5.7% | 4.2% | 4.4% | 4.2% | 3.8% | -0.4% |
| CAPEX, % of revenue | 7.0% | 12.7% | 11.7% | 9.6% | 14.8% | 5.1% |
|
|---|
| ROIC | 21.3% | 13.4% | 14.0% | 13.6% | 11.2% | -2.4% |
| ROE | 23.1% | 15.2% | 17.8% | 14.5% | 12.7% | -1.8% |
| Net Debt/EBITDA | 2.7x | 4.3x | 4.1x | 4.4x | 5.2x | 0.8x |
Peers in Construction & Engineering
Below you can find Mbl Infrastructures benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | -57.2% |
| Welspun Projects ($WELPROJ) | - | -8.9% | -20.7% | 239.1% | -73.2% |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | - | 16.7% | 12.4% | 63.0% | -20.2% |
| Atlanta ($ATLANTA) | - | 115.1% | 28.1% | 50.2% | -70.5% |
| |
|---|
| Median (32 companies) | -3.2% | 6.7% | 6.6% | -0.0% | -4.9% |
|---|
| Mbl Infrastructures ($MBLINFRA) | - | 7.1% | 30.3% | 11.1% | 19.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 36.9% | 35.9% | 32.4% | 31.5% | 27.6% |
| Arss Infrastructure Projects ($ARSSINFRA) | 14.0% | 13.9% | 22.0% | 31.3% | - |
| Reliance Industrial Infrastructure ($RIIL) | - | - | - | 30.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% |
| |
|---|
| Median (37 companies) | 11.9% | 11.3% | 10.2% | 9.9% | 10.0% |
|---|
| Mbl Infrastructures ($MBLINFRA) | 13.3% | 10.6% | 10.7% | 12.1% | 10.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | - |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | 25.2% |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | 18.9% |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| |
|---|
| Median (23 companies) | 7.7% | 6.6% | 4.0% | 3.1% | 3.5% |
|---|
| Mbl Infrastructures ($MBLINFRA) | 7.0% | 12.7% | 11.7% | 9.6% | 14.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Skipper ($SKIPPER) | 10.4% | 13.5% | 14.7% | 27.4% | 24.4% |
| Voltas ($VOLTAS) | 19.6% | 11.7% | 11.8% | 19.3% | 18.2% |
| Coromandel Engineering Company ($COROENGG) | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% |
| Itd Cementation India ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| Simplex Infrastructures ($SIMPLEXINF) | 10.7% | 8.7% | 8.9% | 10.7% | - |
| |
|---|
| Median (43 companies) | 8.6% | 7.1% | 5.6% | 6.6% | 6.3% |
|---|
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | 2,779.7x |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | 14.1x |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | - |
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x |
| |
|---|
| Median (31 companies) | 4.7x | 5.5x | 6.4x | 2.7x | 3.7x |
|---|
| Mbl Infrastructures ($MBLINFRA) | 2.7x | 4.3x | 4.1x | 4.4x | 5.2x |
