Unitech EBITDA dropped on 186% and EBITDA Margin dropped on 56.0 pp from 22.6% to -33.4%
30-05-2016 • About Unitech (
$UNITECH) • By InTwits
Unitech reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Unitech is a company in decline: FY2016 revenue growth was -41.5%, 5 years revenue CAGR was -10.0%
- EBITDA Margin is quite volatile: -33.4% in FY2016, 22.6% in FY2015, 6.3% in FY2014, 13.4% in FY2013, 13.4% in FY2012
- Unitech has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's in pair with industry average of 18.8%
- CAPEX is quite volatile: ₹472m in FY2016, ₹151m in FY2015, ₹3,126m in FY2014, ₹3,094m in FY2013, ₹1,110m in FY2012
- The company has unprofitable business model: ROIC is -4.6%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 10.6x
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 41.5%. During FY2012-FY2016 Revenue growth topped in FY2014 at 21.0% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.1 pp from 19.1% to 27.2% in FY2016.
Net Income margin dropped on 41.2 pp from -3.7% to -45.0% in FY2016. Net Income margin pursued a declining trend in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.4%. CAPEX/Revenue dropped on 10.3 pp from 12.7% in FY2013 to 2.4% in FY2016. It's average CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at negative ROIC (-4.6%) and ROE (-8.6%). ROIC decreased on 9.1 pp from 4.5% to -4.6% in FY2016. ROE decreased on 7.5 pp from -1.1% to -8.6% in FY2016. ROE declined at -2.4 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 5.8x from 5.8x to in FY2016. Debt increased on 2.4% while cash decreased on 4.1%.
Unitech has short term refinancing risk: cash is only 9.1% of short term debt.
Financial and operational results
Unitech ($UNITECH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24,183 | 24,405 | 29,534 | 34,312 | 20,075 | -41.5% |
| EBITDA | 3,245 | 3,280 | 1,863 | 7,766 | -6,699 | -186.3% |
| Net Income | 2,374 | 2,096 | 697 | -1,283 | -9,027 | |
Balance Sheet
|
|---|
| Cash | 3,152 | 4,031 | 2,665 | 2,264 | 2,171 | -4.1% |
| Short Term Debt | 24,607 | 22,481 | 28,953 | 25,691 | 23,837 | -7.2% |
| Long Term Debt | 21,203 | 28,786 | 25,901 | 21,656 | 24,647 | 13.8% |
Cash flow
|
|---|
| Capex | 1,110 | 3,094 | 3,126 | 151 | 472 | 213.2% |
Ratios
|
|---|
| Revenue growth | -28.8% | 0.9% | 21.0% | 16.2% | -41.5% | |
| EBITDA growth | -65.7% | 1.1% | -43.2% | 316.8% | -186.3% | |
|
|---|
| EBITDA Margin | 13.4% | 13.4% | 6.3% | 22.6% | -33.4% | -56.0% |
| Net Income Margin | 9.8% | 8.6% | 2.4% | -3.7% | -45.0% | -41.2% |
| CAPEX, % of revenue | 4.6% | 12.7% | 10.6% | 0.4% | 2.4% | 1.9% |
|
|---|
| ROIC | 1.7% | 1.7% | 0.8% | 4.5% | -4.6% | -9.1% |
| ROE | 2.0% | 1.8% | 0.6% | -1.1% | -8.6% | -7.5% |
| Net Debt/EBITDA | 13.1x | 14.4x | 28.0x | 5.8x | |
Peers in Realty
Below we provide Unitech benchmarking against other companies in Realty 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 |
|---|
| Pvp Ventures ($PVP) | - | - | 32.9% | -15.9% | 177.3% |
| Ajmera Realty & Infra India ($AJMERA) | - | -61.7% | -1.8% | 109.9% | 92.0% |
| Peninsula Land ($PENINLAND) | - | 39.2% | -62.3% | -42.4% | 90.2% |
| Oberoi Realty ($OBEROIRLTY) | - | 27.3% | -23.4% | 14.1% | 53.7% |
| Nila Infrastructures ($NILA) | - | - | - | 28.7% | 47.2% |
| |
|---|
| Median (28 companies) | -4.5% | 5.6% | -4.5% | 11.4% | 2.3% |
|---|
| Unitech ($UNITECH) | - | 0.9% | 21.0% | 16.2% | -41.5% |
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% | 18.6% |
|---|
| Unitech ($UNITECH) | 13.4% | 13.4% | 6.3% | 22.6% | -33.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | 11.2% |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | 15.6% |
| |
|---|
| Median (30 companies) | 4.9% | 2.3% | 3.5% | 2.5% | 3.1% |
|---|
| Unitech ($UNITECH) | 4.6% | 12.7% | 10.6% | 0.4% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($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% | 5.7% | 6.8% | 6.9% |
|---|
| Unitech ($UNITECH) | 1.7% | 1.7% | 0.8% | 4.5% | -4.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($NITESHEST) | 225.8x | - | 5.1x | 5.9x | 151.9x |
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | 51.1x |
| Parsvnath Developers ($PARSVNATH) | 5.1x | 4.7x | 14.6x | 9.0x | 36.3x |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | 27.7x |
| D.S.Kulkarni Developers ($DSKULKARNI) | 56.4x | 16.0x | 12.2x | 9.8x | 19.6x |
| |
|---|
| Median (31 companies) | 5.1x | 4.8x | 4.9x | 4.0x | 4.2x |
|---|
