Madhucon Projects EBITDA jumped on 43.6% and EBITDA Margin increased on 8.1 pp from 32.1% to 40.2%
31-05-2016 • About Madhucon Projects (
$MADHUCON) • By InTwits
Madhucon Projects reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Madhucon Projects is a fast growth stock: FY2016 revenue growth was 14.6%, 5 year revenue CAGR was 27.8% at FY2016 ROIC 10.9%
- EBITDA Margin is quite volatile: 40.2% in FY2016, 32.1% in FY2015, 22.1% in FY2014, 31.9% in FY2013, 8.4% in FY2012
- Madhucon Projects has high CAPEX intensity: 5 year average CAPEX/Revenue was 106.6%. At the same time it's a lot of higher than industry average of 5.8%.
- CAPEX is quite volatile: ₹0m in FY2016, ₹13,743m in FY2015, ₹12,290m in FY2014, ₹13,849m in FY2013, ₹12,954m in FY2012
- The company has business model with average profitability: ROIC is 10.9%
- It operates with high leverage: Net Debt/EBITDA is 6.6x while industry average is 90.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Madhucon Projects's Revenue jumped on 14.6%. During FY2012-FY2016 Revenue growth topped in FY2014 at 81.2% and was decelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.1 pp from 32.1% to 40.2% in FY2016.
Net Income margin increased on 2.9 pp from -0.17% to 2.7% in FY2016. Net Income margin stuck to a growing trend at 14.7 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 6.6x Net Debt / EBITDA and 6.8x Debt / EBITDA. Net Debt / EBITDA dropped on 3.2x from 9.8x to 6.6x in FY2016. Debt decreased slightly on 1.4% while cash surged on 145%. Net Debt/EBITDA followed a declining trend in FY2012-FY2016.
Madhucon Projects has short term refinancing risk: cash is only 8.5% of short term debt.
Valuation and dividends
Madhucon Projects's trades at EV/EBITDA 7.0x and P/E 5.6x while industy averages are 17.8x and 21.9x. Madhucon Projects's EV/(EBITDA-CAPEX) is 7.0x with the industry average at 22.8x.
Financial and operational results
Madhucon Projects ($MADHUCON) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,523 | 8,929 | 16,181 | 20,381 | 23,355 | 14.6% |
| SG&A | | | | | 1,277 | |
| EBITDA | 464 | 2,847 | 3,578 | 6,546 | 9,397 | 43.6% |
| Net Income | -3,045 | -2,767 | -2,238 | -35 | 640 | |
Balance Sheet
|
|---|
| Cash | 1,183 | 375 | 946 | 617 | 1,511 | 144.9% |
| Short Term Debt | 7,701 | 11,629 | 9,640 | 13,496 | 17,760 | 31.6% |
| Long Term Debt | 38,415 | 42,764 | 49,901 | 51,033 | 45,865 | -10.1% |
Cash flow
|
|---|
| Capex | 12,954 | 13,849 | 12,290 | 13,743 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -19.5% | 61.7% | 81.2% | 26.0% | 14.6% | |
| EBITDA growth | -41.5% | 513.2% | 25.7% | 82.9% | 43.6% | |
|
|---|
| EBITDA Margin | 8.4% | 31.9% | 22.1% | 32.1% | 40.2% | 8.1% |
| SG&A, % of revenue | | | | | 5.5% | |
| Net Income Margin | -55.1% | -31.0% | -13.8% | -0.2% | 2.7% | 2.9% |
| CAPEX, % of revenue | 234.5% | 155.1% | 76.0% | 67.4% | 0.0% | |
|
|---|
| ROIC | -2.4% | 0.7% | 3.8% | 7.5% | 10.9% | 3.4% |
| ROE | -71.4% | | | | | |
| Net Debt/EBITDA | 96.8x | 19.0x | 16.4x | 9.8x | 6.6x | -3.2x |
Peers in Construction & Engineering
Below you can find Madhucon Projects benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| Ramky Infrastructure ($RAMKY) | - | -5.0% | -37.9% | -33.6% | 44.2% |
| Shristi Infrastructure Development Corporation ($SHRISTI) | - | -2.1% | -2.3% | 1.0% | 28.2% |
| Prakash Constrowell ($PRAKASHCON) | - | 19.4% | -3.4% | -26.4% | 23.8% |
| Mbl Infrastructures ($MBLINFRA) | - | 7.1% | 30.3% | 11.1% | 19.4% |
| Skipper ($SKIPPER) | - | 21.5% | 15.7% | 26.0% | 14.7% |
| |
|---|
| Median (28 companies) | -11.6% | 6.7% | 6.6% | -0.0% | -6.8% |
|---|
| Madhucon Projects ($MADHUCON) | - | 61.7% | 81.2% | 26.0% | 14.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Atlanta ($ATLANTA) | 28.5% | 34.6% | 30.8% | 21.4% | 8.2% |
| |
|---|
| Median (37 companies) | 12.4% | 11.2% | 10.2% | 9.9% | 10.6% |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | 40.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | 14.8% |
| Mbl Infrastructures ($MBLINFRA) | 7.0% | 12.7% | 11.7% | 9.6% | 14.8% |
| Ramky Infrastructure ($RAMKY) | 10.6% | 11.9% | 8.6% | 1.4% | 6.8% |
| |
|---|
| Median (19 companies) | 7.3% | 6.6% | 4.0% | 3.1% | 3.5% |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | 0.0% |
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% |
| Spml Infra ($SPMLINFRA) | 8.6% | 9.7% | 7.1% | 10.6% | 13.1% |
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | 11.2% |
| Ncc ($NCC) | 9.5% | 8.4% | 7.7% | 10.2% | 10.5% |
| |
|---|
| Median (35 companies) | 8.6% | 7.5% | 6.3% | 6.6% | 6.3% |
|---|
| Madhucon Projects ($MADHUCON) | -2.4% | 0.7% | 3.8% | 7.5% | 10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | 2,779.7x |
| Atlanta ($ATLANTA) | 10.7x | 4.8x | 6.4x | 7.6x | 71.7x |
| Ramky Infrastructure ($RAMKY) | 3.1x | 4.6x | - | - | 20.6x |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | 16.2x |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | 14.1x |
| |
|---|
| Median (25 companies) | 4.5x | 5.2x | 5.4x | 2.7x | 5.0x |
|---|
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | 6.6x |
