Gmr Infrastructure reports 76.6% EBITDA growth in 2016 and 10.0 pp EBITDA Margin growth from 23.5% to 33.5%
31-05-2016 • About Gmr Infrastructure (
$GMRINFRA) • By InTwits
Gmr Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gmr Infrastructure is a fast growth stock: FY2016 revenue growth was 24.0%, 5 year revenue CAGR was 16.4% at FY2016 ROIC 3.8%
- Gmr Infrastructure has high CAPEX intensity: 5 year average CAPEX/Revenue was 69.6%. At the same time it's a lot of higher than industry average of 30.3%.
- CAPEX is quite volatile: ₹22,421m in FY2016, ₹38,051m in FY2015, ₹56,027m in FY2014, ₹102,810m in FY2013, ₹108,133m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.8%
- It operates with high leverage: Net Debt/EBITDA is 10.4x while industry average is 6.8x
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 surged on 24.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.6 pp from 15.2% to 16.8% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin increased on 9.1 pp from -25.0% to -16.0% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Gmr Infrastructure had CAPEX/Revenue of 16.5%. CAPEX/Revenue dropped on 88.0 pp from 105% in FY2013 to 16.5% in FY2016. It's average CAPEX/Revenue for the last three years was 34.8%. CAPEX as a % of Revenue stuck to a declining trend at -31.5 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low but positive ROIC (3.8%) and negative ROE (-40.3%). ROIC increased on 2.8 pp from 1.0% to 3.8% in FY2016. ROE increased on 4.3 pp from -44.6% to -40.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.4x and Debt / EBITDA is 10.9x. Net Debt / EBITDA dropped on 7.2x from 17.7x to 10.4x in FY2016. Debt increased on 3.1% while cash dropped on 17.4%.
Gmr Infrastructure has short term refinancing risk: cash is only 17.5% of short term debt.
Management team
Madhu Bhimacharya Terdal is a the company's CFO. Madhu Bhimacharya Terdal has spent 7 years at the company.
Financial and operational results
Gmr Infrastructure ($GMRINFRA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 77,744 | 98,328 | 105,670 | 109,268 | 135,483 | 24.0% |
| SG&A | | | | 321 | 270 | -15.9% |
| EBITDA | 16,825 | 25,460 | 26,011 | 25,666 | 45,337 | 76.6% |
| Net Income | -6,033 | 881 | 100 | -27,333 | -21,610 | |
Balance Sheet
|
|---|
| Cash | 31,855 | 37,831 | 14,943 | 25,205 | 20,808 | -17.4% |
| Short Term Debt | 106,622 | 107,161 | 114,415 | 90,917 | 118,779 | 30.6% |
| Long Term Debt | 254,147 | 316,332 | 335,993 | 387,390 | 374,134 | -3.4% |
Cash flow
|
|---|
| Capex | 108,133 | 102,810 | 56,027 | 38,051 | 22,421 | -41.1% |
Ratios
|
|---|
| Revenue growth | 22.8% | 26.5% | 7.5% | 3.4% | 24.0% | |
| EBITDA growth | -30.5% | 51.3% | 2.2% | -1.3% | 76.6% | |
|
|---|
| EBITDA Margin | 21.6% | 25.9% | 24.6% | 23.5% | 33.5% | 10.0% |
| SG&A, % of revenue | | | | 0.3% | 0.2% | -0.1% |
| Net Income Margin | -7.8% | 0.9% | 0.1% | -25.0% | -16.0% | 9.1% |
| CAPEX, % of revenue | 139.1% | 104.6% | 53.0% | 34.8% | 16.5% | -18.3% |
|
|---|
| ROIC | 1.8% | 2.8% | 2.0% | 1.0% | 3.8% | 2.8% |
| ROE | -7.9% | 1.2% | 0.1% | -44.6% | -40.3% | 4.3% |
| Net Debt/EBITDA | 19.5x | 15.1x | 16.7x | 17.7x | 10.4x | -7.2x |
Peers in Electric Utilities
Below you can find Gmr Infrastructure 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 ($RELINFRA) | - | -10.7% | -14.4% | -8.6% | 112.0% |
| Ksk Energy Ventures ($KSK) | - | 13.4% | -4.3% | 12.7% | 83.2% |
| 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 ($POWERGRID) | - | 27.2% | 18.9% | 12.8% | 21.0% |
| |
|---|
| Median (16 companies) | 41.4% | 14.2% | 8.8% | 8.1% | 2.6% |
|---|
| Gmr Infrastructure ($GMRINFRA) | - | 26.5% | 7.5% | 3.4% | 24.0% |
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% |
| 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% |
| Gvk Power & Infrastructure ($GVKPIL) | 28.3% | 27.4% | 37.2% | 38.2% | 44.9% |
| |
|---|
| Median (16 companies) | 28.3% | 24.7% | 26.2% | 22.3% | 27.8% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 21.6% | 25.9% | 24.6% | 23.5% | 33.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Power Grid Corporation Of India ($POWERGRID) | 184.3% | 172.4% | 173.4% | 169.8% | 120.3% |
| Nava Bharat Ventures ($NBVENTURES) | 69.0% | 30.5% | 70.6% | 55.3% | 89.8% |
| 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 ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
| |
|---|
| Median (14 companies) | 67.4% | 39.8% | 30.3% | 19.3% | 18.5% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 139.1% | 104.6% | 53.0% | 34.8% | 16.5% |
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 ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| |
|---|
| Median (18 companies) | 5.6% | 5.8% | 5.5% | 6.2% | 6.5% |
|---|
| Gmr Infrastructure ($GMRINFRA) | 1.8% | 2.8% | 2.0% | 1.0% | 3.8% |
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 |
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | 12.4x |
| Jaiprakash Power Ventures ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x |
| Orient Green Power Company ($GREENPOWER) | 21.5x | 10.0x | 10.6x | 8.7x | 9.1x |
| |
|---|
| Median (17 companies) | 8.6x | 6.6x | 6.2x | 6.1x | 5.8x |
|---|
| Gmr Infrastructure ($GMRINFRA) | 19.5x | 15.1x | 16.7x | 17.7x | 10.4x |
