Trending stocks

Mcnally Bharat Engineering Company Net Debt / EBITDA surged on 2,751.4x from 28.3x to 2,779.7x in 2016 and Debt jumped on 38.4%

30-05-2016 • About Mcnally Bharat Engineering Company ($MBECL) • By InTwits

Mcnally Bharat Engineering Company reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
  • EBITDA Margin is quite volatile: 0.0% in FY2016, 2.5% in FY2015, 6.7% in FY2014, 5.5% in FY2013, 5.8% in FY2012
  • Mcnally Bharat Engineering Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 1.7%.
  • CAPEX is quite volatile: ₹107m in FY2016, ₹277m in FY2015, ₹582m in FY2014, ₹713m in FY2013, ₹618m in FY2012
  • The company has unprofitable business model: ROIC is -1.5%
  • It operates with high leverage: Net Debt/EBITDA is 2,779.7x 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


Mcnally Bharat Engineering Company's Revenue increased on 8.9%. During FY2012-FY2016 Revenue growth bottomed in FY2015 at -8.1%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 2.5% to 0.033% in FY2016.

Net Income margin decreased on 9.7 pp from -3.1% to -12.8% in FY2016. Net Income margin declined at -3.3 pp per annum in FY2012-FY2016.

Investments (CAPEX, working capital and M&A)


In FY2016 the company had CAPEX/Revenue of 0.41%. CAPEX/Revenue decreased on 2.3 pp from 2.7% in FY2013 to 0.41% in FY2016. For the last three years the average CAPEX/Revenue was 1.3%. The company maintained rich investment policy and has spent a lot to CAPEX (1,217% of EBITDA). CAPEX as a % of Revenue declined at -0.54 pp per annum in the last 5 years.

Return on investment


The company operates at negative ROIC (-1.5%) and ROE (-144.8%). ROIC decreased on 2.3 pp from 0.76% to -1.5% in FY2016. ROE dropped on 122 pp from -23.0% to -145% in FY2016. ROIC stuck to a declining trend at -3.4 pp per annum in FY2012-FY2016. ROE followed a declining trend in FY2012-FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is 2,779.7x and Debt / EBITDA is 2,840.0x. Net Debt / EBITDA jumped on 2,751.4x from 28.3x to 2,779.7x in FY2016. Debt surged on 38.4% while cash decreased on 8.9%. Net Debt/EBITDA followed a growing trend in the last 5 years.

Mcnally Bharat Engineering Company has short term refinancing risk: cash is only 2.4% of short term debt.

Financial and operational results


Mcnally Bharat Engineering Company ($MBECL) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue26,43226,82126,31924,18026,3408.9%
EBITDA1,5341,4661,7636169-98.6%
Net Income656-219-754-743-3,364
Balance Sheet
Cash552451518581529-8.9%
Short Term Debt5,6108,20212,50417,11521,79627.3%
Long Term Debt1,5722,4701,4488893,120250.9%
Cash flow
Capex618713582277107-61.4%
Ratios
Revenue growth10.5%1.5%-1.9%-8.1%8.9%
EBITDA growth-19.2%-4.5%20.3%-65.1%-98.6%
EBITDA Margin5.8%5.5%6.7%2.5%0.0%-2.5%
Net Income Margin2.5%-0.8%-2.9%-3.1%-12.8%-9.7%
CAPEX, % of revenue2.3%2.7%2.2%1.1%0.4%-0.7%
ROIC11.5%8.2%7.9%0.8%-1.5%-2.3%
ROE19.2%-5.9%-22.3%-23.0%-144.8%-121.8%
Net Debt/EBITDA4.3x7.0x7.6x28.3x2,779.7x2,751.4x

Peers in Construction & Engineering


Below we provide Mcnally Bharat Engineering Company benchmarking against other companies in Construction & Engineering 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
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%6.9%7.1%1.2%-4.9%
Mcnally Bharat Engineering Company ($MBECL)-1.5%-1.9%-8.1%8.9%


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)12.4%11.3%10.7%10.3%10.5%
Mcnally Bharat Engineering Company ($MBECL)5.8%5.5%6.7%2.5%0.0%


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%8.6%6.9%3.2%3.5%
Mcnally Bharat Engineering Company ($MBECL)2.3%2.7%2.2%1.1%0.4%


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 ($COROENGG)-21.9%3.4%-0.3%15.0%7.9%
Mbl Infrastructures ($MBLINFRA)21.3%13.4%14.0%13.6%11.2%
Itd Cementation India ($ITDCEM)13.1%11.3%3.8%12.6%-
 
Median (43 companies)8.6%7.1%5.6%6.8%6.8%
Mcnally Bharat Engineering Company ($MBECL)11.5%8.2%7.9%0.8%-1.5%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Jaiprakash Associates ($JPASSOCIAT)9.2x8.9x11.0x11.9x14.1x
Supreme Infrastructure India ($SUPREMEINF)6.0x6.1x6.8x11.3x-
Madhucon Projects ($MADHUCON)96.8x19.0x16.4x9.8x-
Shristi Infrastructure Development Corporation ($SHRISTI)11.8x8.6x7.9x9.4x8.8x
Hindustan Construction Co ($HCC)18.8x20.3x12.3x9.3x6.4x
 
Median (31 companies)4.7x5.2x5.4x2.7x3.7x
Mcnally Bharat Engineering Company ($MBECL)4.3x7.0x7.6x28.3x2,779.7x


Similar news

30-05-2016 Den Networks EBITDA jumped on 57.2% and Revenue jumped on 10.9%

30-05-2016 Shri Dinesh Mills EBITDA Margin dropped on 14.6 pp from 14.6% to in 2016

30-05-2016 Gokaldas Exports reports 132% EBITDA growth in 2016 and 2.8 pp EBITDA Margin growth from 2.3% to 5.0%

30-05-2016 Natraj Proteins reports 33.6% revenue decline in FY2016

30-05-2016 Shree Rajasthan Syntex reports 12.7% revenue decline in FY2016