Hubtown Debt surged on 64.5% and EBITDA increased on 4.0%
23-06-2016 • About Hubtown (
$HUBTOWN) • By InTwits
Hubtown reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Hubtown has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has business model with low profitability: ROIC is 9.2%
- It operates with high leverage: Net Debt/EBITDA is 7.6x while industry average is 11.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hubtown's Revenue decreased slightly on 1.4%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.4 pp from 82.4% to 86.8% in FY2016. EBITDA Margin followed a growing trend at 7.7 pp per annum in the last 5 years.
Net Income margin decreased on 6.7 pp from 0.17% to -6.6% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.4%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at low but positive ROIC (9.2%) and negative ROE (-1.7%). ROIC decreased slightly on 0.99 pp from 10.2% to 9.2% in FY2016. ROE decreased slightly on 1.7 pp from 0.043% to -1.7% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 10.2%.
Leverage (Debt)
Company's Net Debt / EBITDA is 7.6x and Debt / EBITDA is 7.7x. Net Debt / EBITDA surged on 2.9x from 4.8x to 7.6x in FY2016. Debt jumped on 64.5% while cash dropped on 16.1%.
Hubtown has short term refinancing risk: cash is only 4.9% of short term debt.
Financial and operational results
Hubtown ($HUBTOWN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,349 | 4,411 | 4,735 | 4,433 | 4,373 | -1.4% |
| EBITDA | 2,316 | 3,192 | 3,201 | 3,650 | 3,795 | 4.0% |
| Net Income | 237 | -21 | 229 | 7 | -287 | -4,002.6% |
Balance Sheet
|
|---|
| Cash | 857 | 1,348 | 329 | 434 | 364 | -16.1% |
| Short Term Debt | 14,577 | 4,838 | 9,732 | 10,249 | 7,504 | -26.8% |
| Long Term Debt | 3,888 | 8,578 | 7,940 | 7,555 | 21,784 | 188.3% |
Cash flow
|
|---|
| Capex | 35 | 69 | 17 | 0 | 61 | |
Ratios
|
|---|
| Revenue growth | -35.7% | 1.4% | 7.3% | -6.4% | -1.4% | |
| EBITDA growth | -33.6% | 37.8% | 0.3% | 14.0% | 4.0% | |
|
|---|
| EBITDA Margin | 53.3% | 72.4% | 67.6% | 82.4% | 86.8% | 4.4% |
| Net Income Margin | 5.4% | -0.5% | 4.8% | 0.2% | -6.6% | -6.7% |
| CAPEX, % of revenue | 0.8% | 1.6% | 0.4% | 0.0% | 1.4% | |
|
|---|
| ROIC | 5.6% | 9.3% | 9.6% | 10.2% | 9.2% | -1.0% |
| ROE | 1.4% | -0.1% | 1.4% | 0.0% | -1.7% | -1.7% |
| Net Debt/EBITDA | 7.6x | 3.8x | 5.4x | 4.8x | 7.6x | 2.9x |
Peers in Realty
Below you can find Hubtown benchmarking vs. other companies in Realty 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 |
|---|
| 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 ($OBEROIRLTY) | - | 27.3% | -23.4% | 14.1% | 53.7% |
| |
|---|
| Median (34 companies) | - | 5.6% | -4.5% | 13.2% | -1.0% |
|---|
| Hubtown ($HUBTOWN) | - | 1.4% | 7.3% | -6.4% | -1.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Housing Development & Infrastructure ($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 ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| The Phoenix Mills ($PHOENIXLTD) | 54.7% | 56.2% | 46.9% | 46.2% | 47.5% |
| |
|---|
| Median (43 companies) | 19.4% | 13.4% | 19.8% | 19.4% | 16.3% |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | 86.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($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 (25 companies) | 4.9% | 2.6% | 3.7% | 2.5% | 2.9% |
|---|
| Hubtown ($HUBTOWN) | 0.8% | 1.6% | 0.4% | 0.0% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($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 (49 companies) | 5.9% | 4.6% | 5.6% | 6.8% | 6.4% |
|---|
| Hubtown ($HUBTOWN) | 5.6% | 9.3% | 9.6% | 10.2% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($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 |
| Srs Real Infrastructure ($SRSREAL) | 11.7x | 10.0x | 12.9x | 14.7x | 30.2x |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | 27.7x |
| |
|---|
| Median (34 companies) | 5.1x | 5.1x | 4.9x | 4.0x | 4.4x |
|---|
| Hubtown ($HUBTOWN) | 7.6x | 3.8x | 5.4x | 4.8x | 7.6x |
