Ksk Energy Ventures Net Debt / EBITDA dropped on 23.3x from 35.7x to 12.4x in 2016 while Revenue jumped on 83.2%
31-05-2016 • About Ksk Energy Ventures (
$KSK) • By InTwits
Ksk Energy Ventures reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ksk Energy Ventures is a fast growth stock: FY2016 revenue growth was 83.2%, 5 year revenue CAGR was 31.8% at FY2016 ROIC 4.9%
- Ksk Energy Ventures has high CAPEX intensity: 5 year average CAPEX/Revenue was 72.2%. At the same time it's a lot of higher than industry average of 30.3%.
- CAPEX is quite volatile: ₹1,908m in FY2016, ₹13,673m in FY2015, ₹12,029m in FY2014, ₹17,719m in FY2013, ₹31,507m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.9%
- It operates with high leverage: Net Debt/EBITDA is 12.4x 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 jumped on 83.2%. During the last 5 years Revenue growth bottomed in FY2014 at -4.3% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.7 pp from 25.3% to 27.0% in FY2016.
Net Income margin increased on 3.0 pp from -13.5% to -10.5% in FY2016. Net Income margin followed a declining trend at -5.5 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Ksk Energy Ventures's CAPEX/Revenue was 4.4% in FY2016. CAPEX/Revenue dropped on 75.9 pp from 80.3% in FY2013 to 4.4% in FY2016. It's average CAPEX/Revenue for the last three years was 39.6%. CAPEX as a % of Revenue followed a declining trend at -33.8 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low but positive ROIC (4.9%) and negative ROE (-15.1%). ROIC increased on 4.0 pp from 0.90% to 4.9% in FY2016. ROE decreased on 4.6 pp from -10.5% to -15.1% in FY2016. ROE followed a declining trend at -5.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.4x and Debt / EBITDA is 12.4x. Net Debt / EBITDA dropped on 23.3x from 35.7x to 12.4x in FY2016. Debt jumped on 10.4% while cash dropped on 75.7%.
Ksk Energy Ventures has short term refinancing risk: cash is only 1.9% of short term debt.
Management team
V Sambasiva Rao is a Ksk Energy Ventures's CFO. V Sambasiva Rao has spent 5 years at the company.
Financial and operational results
Ksk Energy Ventures ($KSK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,461 | 22,070 | 21,118 | 23,804 | 43,603 | 83.2% |
| EBITDA | 6,792 | 8,296 | 5,541 | 4,951 | 15,921 | 221.6% |
| Net Income | 1,314 | 1,506 | -1,629 | -3,202 | -4,562 | |
Balance Sheet
|
|---|
| Cash | 4,990 | 1,441 | 1,730 | 2,218 | 540 | -75.7% |
| Short Term Debt | 35,114 | 23,071 | 34,264 | 20,463 | 28,287 | 38.2% |
| Long Term Debt | 80,544 | 112,689 | 117,080 | 158,492 | 169,203 | 6.8% |
Cash flow
|
|---|
| Capex | 31,507 | 17,719 | 12,029 | 13,673 | 1,908 | -86.0% |
Ratios
|
|---|
| Revenue growth | 77.4% | 13.4% | -4.3% | 12.7% | 83.2% | |
| EBITDA growth | 31.6% | 22.1% | -33.2% | -10.6% | 221.6% | |
|
|---|
| EBITDA Margin | 34.9% | 37.6% | 26.2% | 20.8% | 36.5% | 15.7% |
| Net Income Margin | 6.7% | 6.8% | -7.7% | -13.5% | -10.5% | 3.0% |
| CAPEX, % of revenue | 161.9% | 80.3% | 57.0% | 57.4% | 4.4% | -53.1% |
|
|---|
| ROIC | 3.6% | 3.7% | 1.5% | 0.9% | 4.9% | 4.0% |
| ROE | 4.2% | 4.7% | -5.7% | -10.5% | -15.1% | -4.6% |
| Net Debt/EBITDA | 16.3x | 16.2x | 27.0x | 35.7x | 12.4x | -23.3x |
Peers in Electric Utilities
Below we provide Ksk Energy Ventures benchmarking against other companies in Electric Utilities 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 |
|---|
| 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 ($GVKPIL) | - | 4.6% | 8.2% | 8.1% | 32.5% |
| Gmr Infrastructure ($GMRINFRA) | - | 26.5% | 7.5% | 3.4% | 24.0% |
| Power Grid Corporation Of India ($POWERGRID) | - | 27.2% | 18.9% | 12.8% | 21.0% |
| |
|---|
| Median (16 companies) | 41.4% | 15.3% | 8.8% | 6.1% | 2.6% |
|---|
| Ksk Energy Ventures ($KSK) | - | 13.4% | -4.3% | 12.7% | 83.2% |
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% |
| 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 ($GVKPIL) | 28.3% | 27.4% | 37.2% | 38.2% | 44.9% |
| |
|---|
| Median (16 companies) | 24.4% | 24.7% | 25.0% | 23.5% | 27.8% |
|---|
| Ksk Energy Ventures ($KSK) | 34.9% | 37.6% | 26.2% | 20.8% | 36.5% |
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 ($GVKPIL) | 139.1% | 136.7% | 109.1% | 52.7% | 36.9% |
| |
|---|
| Median (14 companies) | 67.4% | 39.8% | 30.3% | 19.3% | 21.1% |
|---|
| Ksk Energy Ventures ($KSK) | 161.9% | 80.3% | 57.0% | 57.4% | 4.4% |
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 ($ALSTOMT&D) | 0.0% | 15.7% | 14.6% | 16.1% | 10.6% |
| |
|---|
| Median (18 companies) | 5.6% | 5.8% | 5.5% | 6.2% | 6.5% |
|---|
| Ksk Energy Ventures ($KSK) | 3.6% | 3.7% | 1.5% | 0.9% | 4.9% |
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 ($JPPOWER) | 11.6x | 13.1x | 16.7x | 13.4x | 10.7x |
| Gmr Infrastructure ($GMRINFRA) | 19.5x | 15.1x | 16.7x | 17.7x | 10.4x |
| Orient Green Power Company ($GREENPOWER) | 21.5x | 10.0x | 10.6x | 8.7x | 9.1x |
| |
|---|
| Median (17 companies) | 8.6x | 6.6x | 6.2x | 6.1x | 5.8x |
|---|
| Ksk Energy Ventures ($KSK) | 16.3x | 16.2x | 27.0x | 35.7x | 12.4x |
