Nava Bharat Ventures Debt jumped on 141% while Revenue dropped on 12.2%
30-05-2016 • About Nava Bharat Ventures (
$NBVENTURES) • By InTwits
Nava Bharat Ventures reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nava Bharat Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 63.0%. At the same time it's a lot of higher than industry average of 34.8%.
- CAPEX is quite volatile: ₹14,299m in FY2016, ₹10,038m in FY2015, ₹12,069m in FY2014, ₹3,434m in FY2013, ₹6,742m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.8%
- It operates with high leverage: Net Debt/EBITDA is 8.5x while industry average is 7.9x
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 12.2%. During the last 5 years Revenue growth topped in FY2014 at 51.6% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.4 pp from 17.1% to 22.5% in FY2016.
Net Income margin increased on 6.7 pp from 11.4% to 18.0% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at 11.4%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 89.8% in FY2016. CAPEX/Revenue jumped on 59.3 pp from 30.5% in FY2013 to 89.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 71.9%. Battling declining revenue Nava Bharat Ventures made large investments to CAPEX (398% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (4.8%) and ROE (9.4%). ROIC showed almost no change in FY2016. ROE increased on 2.5 pp from 6.9% to 9.4% in FY2016. During the last 5 years ROIC topped in FY2014 at 9.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.5x and Debt / EBITDA is 10.3x. Net Debt / EBITDA jumped on 4.0x from 4.5x to 8.5x in FY2016. Debt jumped on 141% while cash surged on 372%. Net Debt/EBITDA grew at 1.6x per annum in the last 5 years.
Nava Bharat Ventures has no short term refinancing risk: cash is higher than short term debt (142.8%).
Valuation and dividends
The company's trades at EV/EBITDA 12.6x and P/E 5.1x while industy averages are 17.8x and 21.9x.
Financial and operational results
Nava Bharat Ventures ($NBVENTURES) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,774 | 11,272 | 17,089 | 18,138 | 15,930 | -12.2% |
| EBITDA | 1,974 | 2,751 | 4,751 | 3,103 | 3,591 | 15.7% |
| Net Income | 2,841 | 1,904 | 2,799 | 2,060 | 2,873 | 39.4% |
Balance Sheet
|
|---|
| Cash | 5,442 | 5,913 | 1,765 | 1,405 | 6,638 | 372.3% |
| Short Term Debt | 3,511 | 8,444 | 7,947 | 12,228 | 4,650 | -62.0% |
| Long Term Debt | 4,533 | 4,283 | 3,836 | 3,151 | 32,380 | 927.6% |
Cash flow
|
|---|
| Capex | 6,742 | 3,434 | 12,069 | 10,038 | 14,299 | 42.5% |
Ratios
|
|---|
| Revenue growth | -10.4% | 15.3% | 51.6% | 6.1% | -12.2% | |
| EBITDA growth | -35.2% | 39.4% | 72.7% | -34.7% | 15.7% | |
|
|---|
| EBITDA Margin | 20.2% | 24.4% | 27.8% | 17.1% | 22.5% | 5.4% |
| Net Income Margin | 29.1% | 16.9% | 16.4% | 11.4% | 18.0% | 6.7% |
| CAPEX, % of revenue | 69.0% | 30.5% | 70.6% | 55.3% | 89.8% | 34.4% |
|
|---|
| ROIC | 5.3% | 6.3% | 9.2% | 5.2% | 4.8% | -0.5% |
| ROE | 13.5% | 8.0% | 10.2% | 6.9% | 9.4% | 2.5% |
| Net Debt/EBITDA | 1.3x | 2.5x | 2.1x | 4.5x | 8.5x | 4.0x |
Peers in Electric Utilities
Below you can find Nava Bharat 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 |
|---|
| Reliance Infrastructure ($RELINFRA) | - | -10.7% | -14.4% | -8.6% | 112.0% |
| Adani Power ($ADANIPOWER) | - | 65.7% | 128.0% | 21.7% | 34.1% |
| Gvk Power & Infrastructure ($GVKPIL) | - | 4.6% | 8.2% | 8.1% | 32.5% |
| Power Grid Corporation Of India ($POWERGRID) | - | 27.2% | 18.9% | 12.8% | 21.0% |
| Torrent Power ($TORNTPOWER) | - | 9.9% | 5.6% | 19.8% | 12.4% |
| |
|---|
| Median (14 companies) | 41.4% | 14.2% | 8.4% | 8.1% | 2.6% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | - | 15.3% | 51.6% | 6.1% | -12.2% |
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% |
| Jaiprakash Power Ventures ($JPPOWER) | 91.7% | 70.6% | 60.1% | 63.3% | 57.2% |
| |
|---|
| Median (18 companies) | 28.3% | 25.5% | 25.0% | 23.5% | 27.8% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 20.2% | 24.4% | 27.8% | 17.1% | 22.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 184.3% | 172.4% | 173.4% | 169.8% | 120.3% |
| Jaiprakash Power Ventures ($JPPOWER) | 378.9% | 341.9% | 229.9% | 113.6% | 66.7% |
| Orient Green Power Company ($GREENPOWER) | 422.5% | 170.0% | 77.0% | 19.3% | 52.8% |
| Gvk Power & Infrastructure ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
| Ntpc ($NTPC) | 20.2% | 28.9% | 24.1% | 24.2% | 29.8% |
| |
|---|
| Median (12 companies) | 102.5% | 46.8% | 30.3% | 19.3% | 18.5% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 69.0% | 30.5% | 70.6% | 55.3% | 89.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Adani Power ($ADANIPOWER) | 2.4% | -0.4% | 5.5% | 6.6% | 11.2% |
| Tata Power Co ($TATAPOWER) | 8.9% | 8.8% | 9.0% | 7.1% | 10.6% |
| Alstom T&D India ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| |
|---|
| Median (15 companies) | 5.1% | 5.4% | 4.9% | 6.2% | 6.5% |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 5.3% | 6.3% | 9.2% | 5.2% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lanco Infratech ($LITL) | 16.3x | 12.9x | 19.2x | 17.5x | 18.1x |
| Gvk Power & Infrastructure ($GVKPIL) | 19.1x | 23.9x | 20.1x | 20.2x | 14.2x |
| Jaiprakash Power Ventures ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x |
| Orient Green Power Company ($GREENPOWER) | 21.5x | 10.0x | 10.6x | 8.7x | 9.1x |
| Adani Power ($ADANIPOWER) | 25.1x | 38.0x | 9.0x | 8.2x | 6.2x |
| |
|---|
| Median (15 companies) | 11.3x | 8.6x | 6.6x | 6.2x | 5.8x |
|---|
| Nava Bharat Ventures ($NBVENTURES) | 1.3x | 2.5x | 2.1x | 4.5x | 8.5x |
