Sayaji Hotels reports 290% Net Income growth in 2016 and 26.4% Revenue growth
31-05-2016 • About Sayaji Hotels (
$SAYAJIHOTL) • By InTwits
Sayaji Hotels reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Sayaji Hotels has high CAPEX intensity: 5 year average CAPEX/Revenue was 20.9%. At the same time it's a lot of higher than industry average of 11.1%.
- CAPEX is quite volatile: ₹136m in FY2016, ₹255m in FY2015, ₹191m in FY2014, ₹60m in FY2013, ₹71m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.0x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sayaji Hotels's Revenue jumped on 26.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 37.0 pp from 19.5% to 56.5% in FY2016.
Net Income margin increased on 4.4 pp from 2.1% to 6.4% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 25.5%. CAPEX/Revenue increased on 8.0 pp from 17.5% in FY2013 to 25.5% in FY2016. It's average CAPEX/Revenue for the last three years was 22.7%. Sayaji Hotels has spent a lot to CAPEX (123% of EBITDA) to fuel its growth.
Return on investment
The company operates at low ROIC (3.6%) and ROE (10.5%). ROIC increased on 2.3 pp from 1.3% to 3.6% in FY2016. ROE increased on 7.7 pp from 2.8% to 10.5% in FY2016.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 3.3x to 3.0x in FY2016. Debt jumped on 28.8% while cash surged on 512%.
Sayaji Hotels has short term refinancing risk: cash is only 8.5% of short term debt.
Valuation and dividends
Sayaji Hotels's trades at EV/EBITDA 5.0x and P/E 6.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Sayaji Hotels ($SAYAJIHOTL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,423 | 3,017 | 3,905 | 1,428 | 1,805 | 26.4% |
| EBITDA | 532 | 938 | 663 | 279 | 373 | 33.9% |
| Net Income | 57 | -387 | 138 | 30 | 116 | 290.0% |
Balance Sheet
|
|---|
| Cash | 13 | 64 | 101 | 10 | 61 | 511.6% |
| Short Term Debt | 526 | 497 | 396 | 305 | 724 | 137.5% |
| Long Term Debt | 964 | 1,112 | 774 | 613 | 457 | -25.3% |
Cash flow
|
|---|
| Capex | 458 | 527 | 483 | 433 | 460 | 6.2% |
Ratios
|
|---|
| Revenue growth | 18.2% | 24.5% | 29.4% | -63.4% | 26.4% | |
| EBITDA growth | 22.7% | 76.4% | -29.3% | -57.9% | 33.9% | |
|
|---|
| EBITDA Margin | 21.9% | 31.1% | 17.0% | 19.5% | 20.7% | 1.2% |
| Net Income Margin | 2.4% | -12.8% | 3.5% | 2.1% | 6.4% | 4.4% |
| CAPEX, % of revenue | 18.9% | 17.5% | 12.4% | 30.3% | 25.5% | -4.8% |
|
|---|
| ROIC | 13.1% | 9.4% | 14.2% | 1.3% | 3.6% | 2.3% |
| ROE | 5.1% | -40.0% | 14.7% | 2.8% | 10.5% | 7.7% |
| Net Debt/EBITDA | 2.8x | 1.6x | 1.6x | 3.3x | 3.0x | -0.3x |
Peers in Hotels
Below we provide Sayaji Hotels benchmarking against other companies in Hotels 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 |
|---|
| Mahindra Holidays & Resorts India ($MHRIL) | - | 27.8% | 10.5% | -8.0% | 97.2% |
| The Byke Hospitality ($THEBYKE) | - | 105.7% | 54.3% | 16.5% | 27.6% |
| Asian Hotels (West) ($AHLWEST) | - | -0.2% | 3.1% | 96.5% | 16.3% |
| Kamat Hotels (India) ($KAMATHOTEL) | - | 14.1% | -4.9% | -3.6% | 11.6% |
| Blue Coast Hotels ($BLUECOAST) | - | -3.8% | 5.9% | 3.4% | 8.2% |
| |
|---|
| Median (15 companies) | 69.9% | 8.6% | 5.5% | 3.4% | 3.8% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | - | 24.5% | 29.4% | -63.4% | 26.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Hotels ($JINDHOT) | - | - | - | 37.6% | - |
| Benares Hotels ($BENARAS) | - | - | - | 33.6% | - |
| Fomento Resorts & Hotels ($FOMEHOT) | - | - | - | 27.9% | - |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 25.9% | - |
| Country Club (India) ($COUNCLB) | 34.2% | 32.3% | 24.2% | 23.7% | 22.5% |
| |
|---|
| Median (20 companies) | 21.7% | 22.6% | 21.0% | 20.8% | 20.8% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 21.9% | 31.1% | 17.0% | 19.5% | 20.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Country Club (India) ($COUNCLB) | 58.7% | 36.6% | 49.6% | 28.5% | 37.1% |
| Asian Hotels (North) ($ASIANHOTNR) | 30.8% | 60.2% | 37.2% | 36.1% | 26.8% |
| Mahindra Holidays & Resorts India ($MHRIL) | 26.0% | 26.5% | 15.4% | 18.0% | 12.6% |
| The Byke Hospitality ($THEBYKE) | 33.3% | 15.7% | 5.8% | 4.9% | 7.9% |
| Oriental Hotels ($ORIENTHOT) | 24.3% | 17.7% | 13.1% | 7.5% | 6.5% |
| |
|---|
| Median (11 companies) | 30.8% | 22.1% | 8.8% | 4.9% | 5.5% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 18.9% | 17.5% | 12.4% | 30.3% | 25.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| The Byke Hospitality ($THEBYKE) | 5.3% | 14.5% | 22.6% | 24.1% | 32.0% |
| Advani Hotels & Resorts (India) ($ADVANIHOTR) | - | - | - | 15.9% | 19.6% |
| Mahindra Holidays & Resorts India ($MHRIL) | 13.4% | 22.2% | 16.3% | 6.3% | 10.0% |
| Eih ($EIHOTEL) | 5.5% | 4.5% | 5.8% | 6.3% | 6.6% |
| Country Club (India) ($COUNCLB) | 8.8% | 8.9% | 5.4% | 5.3% | 4.8% |
| |
|---|
| Median (27 companies) | 5.4% | 4.7% | 2.8% | 3.5% | 2.8% |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 13.1% | 9.4% | 14.2% | 1.3% | 3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 62.5x | 40.2x | 33.5x | 46.7x | 27.7x |
| Asian Hotels (North) ($ASIANHOTNR) | 28.4x | 11.0x | 15.4x | 24.8x | 15.9x |
| Oriental Hotels ($ORIENTHOT) | 4.3x | 4.6x | 6.0x | 5.5x | 6.5x |
| Tgb Banquets And Hotels ($TGBHOTELS) | 3.7x | 3.0x | 2.7x | 4.0x | 3.7x |
| Country Club (India) ($COUNCLB) | 2.0x | 1.8x | 3.2x | 3.5x | 3.6x |
| |
|---|
| Median (18 companies) | 1.8x | 2.3x | 0.9x | 0.3x | 0.3x |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 2.8x | 1.6x | 1.6x | 3.3x | 3.0x |
