Eih reports 41.1% Net Income decline and 0.94 pp EBITDA Margin growth from 21.7% to 22.7%
30 May 2015 • About Eih (
$EIHD) • By InTwits
Eih reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eih has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.1%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: 783 in FY2015, 816 in FY2014, 626 in FY2013, 1,484 in FY2012, 3,472 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eih ($EIHD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,520 | 14,072 | 14,685 | 15,466 | 16,683 | 7.9% |
| EBITDA | 2,699 | 3,256 | 2,967 | 3,358 | 3,779 | 12.5% |
| Net Income | -52 | 1,223 | 418 | 1,071 | 631 | -41.1% |
Balance Sheet
|
|---|
| Cash | 6,781 | 942 | 1,164 | 1,213 | 1,369 | 12.8% |
| Short Term Debt | 4,208 | 2,107 | 3,621 | 1,987 | 1,985 | -0.1% |
| Long Term Debt | 6,685 | 3,477 | 3,819 | 2,531 | 2,196 | -13.2% |
Cash flow
|
|---|
| Capex | 2,370 | 1,910 | 1,767 | 1,094 | 1,498 | 36.9% |
Ratios
|
|---|
| Revenue growth | 48.2% | 12.4% | 4.4% | 5.3% | 7.9% | |
| EBITDA growth | 23.6% | 20.7% | -8.9% | 13.2% | 12.5% | |
| EBITDA Margin | 21.6% | 23.1% | 20.2% | 21.7% | 22.7% | 0.9% |
| Net Income Margin | -0.4% | 8.7% | 2.8% | 6.9% | 3.8% | -3.1% |
| CAPEX, % of revenue | 18.9% | 13.6% | 12.0% | 7.1% | 9.0% | 1.9% |
| ROIC | 4.5% | 5.5% | 4.5% | 5.8% | 6.3% | 0.5% |
| ROE | -0.3% | 4.8% | 1.6% | 4.1% | 2.4% | -1.7% |
| Net Debt/EBITDA | 1.5x | 1.4x | 2.1x | 1.0x | 0.7x | -0.2x |
Revenue and profitability
The company's Revenue increased on 7.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.94 pp from 21.7% to 22.7% in FY2015.
Net Income marign decreased on 3.1 pp from 6.9% to 3.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 9.0%. CAPEX/Revenue decreased on 4.6 pp from 13.6% in FY2012 to 9.0% in FY2015. For the last three years the average CAPEX/Revenue was 9.4%.
Return on investment
The company operates at low ROIC (6.35%) and ROE (2.42%). ROIC increased slightly on 0.51 pp from 5.8% to 6.3% in FY2015. ROE decreased slightly on 1.7 pp from 4.1% to 2.4% in FY2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.0x to 0.7x in FY2015. Debt decreased on 7.4% in FY2015 while cash jumped on 12.8% in FY2015.
Appendix 1: Peers in Hotels
Below we provide Eih 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.
