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Srei Infrastructure Finance CAPEX dropped on 56.0% in 2015 while Revenue increased on 2.3%

02 May 2015 • About Srei Infrastructure Finance ($SRI) • By InTwits

Srei Infrastructure Finance reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Srei Infrastructure Finance has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 2.7%.
  • CAPEX is quite volatile: 1,737 in FY2015, 3,947 in FY2014, 2,592 in FY2013, 7,167 in FY2012, 5,699 in FY2011
  • It operates with high leverage: Net Debt/EBITDA is 8.0x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Srei Infrastructure Finance ($SRI) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue16,38124,46331,10731,24631,9542.3%
EBITDA12,85119,72926,10126,14325,070-4.1%
Net Income1,7921,1142,6321,3851,302-6.0%
Balance Sheet
Cash8992,3051,5322,6352,8407.8%
Short Term Debt40,72183,08894,912126,636135,2166.8%
Long Term Debt42,36057,27667,54071,03768,042-4.2%
Cash flow
Capex5,6997,1672,5923,9471,737-56.0%
Ratios
Revenue growth77.1%49.3%27.2%0.4%2.3%
EBITDA growth72.1%53.5%32.3%0.2%-4.1%
EBITDA Margin78.5%80.6%83.9%83.7%78.5%-5.2%
Net Income Margin10.9%4.6%8.5%4.4%4.1%-0.4%
CAPEX, % of revenue34.8%29.3%8.3%12.6%5.4%-7.2%
ROE8.2%3.6%8.0%4.0%3.7%-0.3%
Net Debt/EBITDA6.4x7.0x6.2x7.5x8.0x0.5x

Revenue and profitability


Srei Infrastructure Finance's Revenue increased on 2.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 0.83% to 4.0% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


Srei Infrastructure Finance's CAPEX/Revenue was 5.4% in FY2015. Srei Infrastructure Finance's CAPEX/Revenue dropped on 23.9 pp from 29.3% in FY2012 to 5.4% in FY2015. It's average CAPEX/Revenue for the last three years was 8.8%.

Leverage (Debt)


Company's Net Debt / EBITDA is 8.0x and Debt / EBITDA is 8.1x. Net Debt / EBITDA jumped on 0.5x from 7.5x to 8.0x in FY2015. Debt increased on 2.8% in FY2015 while cash increased on 7.8% in FY2015.

Appendix 1: Peers in Finance (including NBFCs)


Below we provide Srei Infrastructure Finance benchmarking against other companies in Finance (including NBFCs) 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  FY2011 FY2012 FY2013 FY2014 FY2015
Bajaj Holdings & Investment ($BAUD)25.1%-66.6%12.7%23.2%
 
Median (1 company)25.1%-66.6%12.7%23.2%
Srei Infrastructure Finance ($SRI)49.3%27.2%0.4%2.3%


Top companies by EBITDA margin, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bajaj Holdings & Investment ($BAUD)98.7%96.2%95.5%94.4%
 
Median (1 company)98.7%96.2%95.5%94.4%
Srei Infrastructure Finance ($SRI)78.5%80.6%83.9%83.7%78.5%


Top companies by CAPEX/Revenue, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bajaj Holdings & Investment ($BAUD)0.0%0.0%0.0%
 
Median (1 company)0.0%0.0%0.0%
Srei Infrastructure Finance ($SRI)34.8%29.3%8.3%12.6%5.4%


Top companies by ROIC, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bajaj Holdings & Investment ($BAUD)11.7%3.6%3.4%3.5%
 
Median (1 company)11.7%3.6%3.4%3.5%
Srei Infrastructure Finance ($SRI)


Top companies by Net Debt / EBITDA

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bajaj Holdings & Investment ($BAUD)-0.3x-0.2x-0.1x-0.2x
 
Median (1 company)-0.3x-0.2x-0.1x-0.2x
Srei Infrastructure Finance ($SRI)6.4x7.0x6.2x7.5x8.0x