Srs Real Infrastructure Net Debt / EBITDA jumped on 15.5x from 14.7x to 30.2x in 2016 while EBITDA dropped on 75.4%
09-06-2016 • About Srs Real Infrastructure (
$SRSREAL) • By InTwits
Srs Real Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 0.8% in FY2016 vs. 2.7% in FY2015 vs. 2.4% in FY2012
- EBITDA Margin is quite volatile: 0.8% in FY2016, 2.7% in FY2015, 2.8% in FY2014, 2.2% in FY2013, 2.4% in FY2012
- Srs Real Infrastructure has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: ₹344m in FY2016, ₹160m in FY2015, ₹384m in FY2014, ₹1,151m in FY2013, ₹176m in FY2012
- The company has potentially unprofitable business model: ROIC is 0.6%
- It operates with high leverage: Net Debt/EBITDA is 30.2x while industry average is 11.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Srs Real Infrastructure's Revenue dropped on 18.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 2.7% to 0.83% in FY2016.
Net Income margin decreased on 2.8 pp from 0.58% to -2.2% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.3% in FY2016. Srs Real Infrastructure showed decline in CAPEX/Revenue of 6.7 pp from 11.0% in FY2013 to 4.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.3%. The company has spent a lot to CAPEX (518% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.6%) and negative ROE (-7.9%). ROIC decreased on 3.1 pp from 3.7% to 0.59% in FY2016. ROE dropped on 10.4 pp from 2.5% to -7.9% in FY2016. During FY2012-FY2016 ROIC topped in FY2014 at 4.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 30.2x and Debt / EBITDA is 33.4x. Net Debt / EBITDA jumped on 15.5x from 14.7x to 30.2x in FY2016. Debt dropped on 48.3% while cash dropped on 32.0%. During the last 5 years Net Debt/EBITDA bottomed in FY2013 at 10.0x and was growing since that time.
Srs Real Infrastructure has short term refinancing risk: cash is only 19.2% of short term debt.
Financial and operational results
Srs Real Infrastructure ($SRSREAL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,194 | 10,484 | 9,503 | 9,935 | 8,059 | -18.9% |
| EBITDA | 217 | 227 | 267 | 271 | 67 | -75.4% |
| Net Income | 99 | 61 | 50 | 57 | -177 | -408.5% |
Balance Sheet
|
|---|
| Cash | 104 | 176 | 295 | 314 | 214 | -32.0% |
| Short Term Debt | 1,565 | 1,635 | 1,836 | 2,488 | 1,116 | -55.1% |
| Long Term Debt | 1,065 | 813 | 1,896 | 1,809 | 1,104 | -39.0% |
Cash flow
|
|---|
| Capex | 176 | 1,151 | 384 | 160 | 344 | 115.2% |
Ratios
|
|---|
| Revenue growth | 19.8% | 14.0% | -9.4% | 4.5% | -18.9% | |
| EBITDA growth | -3.4% | 4.7% | 17.5% | 1.6% | -75.4% | |
|
|---|
| EBITDA Margin | 2.4% | 2.2% | 2.8% | 2.7% | 0.8% | -1.9% |
| Net Income Margin | 1.1% | 0.6% | 0.5% | 0.6% | -2.2% | -2.8% |
| CAPEX, % of revenue | 1.9% | 11.0% | 4.0% | 1.6% | 4.3% | 2.7% |
|
|---|
| ROIC | 3.4% | 4.3% | 4.5% | 3.7% | 0.6% | -3.1% |
| ROE | 4.6% | 2.8% | 2.2% | 2.5% | -7.9% | -10.4% |
| Net Debt/EBITDA | 11.7x | 10.0x | 12.9x | 14.7x | 30.2x | 15.5x |
Peers in Realty
Below we provide Srs Real Infrastructure 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 ($PVP) | - | - | 32.9% | -15.9% | 177.3% |
| Sunteck Realty ($SUNTECK) | - | 77.7% | 2,963.6% | -67.3% | 159.7% |
| 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 ($OBEROIRLTY) | - | 27.3% | -23.4% | 14.1% | 53.7% |
| |
|---|
| Median (32 companies) | -28.4% | 3.4% | -1.8% | 13.2% | 1.2% |
|---|
| Srs Real Infrastructure ($SRSREAL) | - | 14.0% | -9.4% | 4.5% | -18.9% |
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% | 22.6% | 17.1% |
|---|
| Srs Real Infrastructure ($SRSREAL) | 2.4% | 2.2% | 2.8% | 2.7% | 0.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($NITESHEST) | - | 39.7% | 0.1% | 2.8% | 104.7% |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| The Phoenix Mills ($PHOENIXLTD) | 168.3% | 108.0% | 107.1% | 7.3% | 22.8% |
| Ansal Properties & Infrastructure ($ANSALAPI) | 20.7% | 9.4% | 5.4% | 5.8% | 19.4% |
| Vipul ($VIPUL) | 5.0% | 1.9% | 3.3% | 9.4% | 15.7% |
| |
|---|
| Median (24 companies) | 4.9% | 2.3% | 3.5% | 2.5% | 2.9% |
|---|
| Srs Real Infrastructure ($SRSREAL) | 1.9% | 11.0% | 4.0% | 1.6% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | 27.1% |
| Ashiana Housing ($ASHIANA) | 34.1% | 6.6% | 5.8% | 6.0% | 20.4% |
| B.L.Kashyap And Sons ($BLKASHYAP) | 4.4% | 6.9% | 2.6% | -2.6% | 20.2% |
| Ajmera Realty & Infra India ($AJMERA) | 6.6% | 2.3% | 2.4% | 8.3% | 14.2% |
| Brigade Enterprises ($BRIGADE) | 4.5% | 6.2% | 9.3% | 10.5% | 10.9% |
| |
|---|
| Median (47 companies) | 5.9% | 5.1% | 5.7% | 6.8% | 6.9% |
|---|
| Srs Real Infrastructure ($SRSREAL) | 3.4% | 4.3% | 4.5% | 3.7% | 0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($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 (33 companies) | 5.1x | 4.8x | 4.9x | 4.0x | 4.2x |
|---|
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | 30.2x |
