Noida Toll Bridge Company reports 1,336% CAPEX growth and 5.8% Revenue growth
03 May 2016 • About Noida Toll Bridge Company (
$NTBC) • By InTwits
Noida Toll Bridge Company reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Noida Toll Bridge Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 128 in FY2016, 8.9 in FY2015, 2.9 in FY2014, 10.9 in FY2013, 3.1 in FY2012
- The company has business model with average profitability: ROIC is at 10.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Noida Toll Bridge Company ($NTBC) key annual financial indicators
| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 950 | 1,076 | 1,197 | 1,233 | 1,305 | 5.8% |
| SG&A | | | | | 6 | |
| EBITDA | 680 | 735 | 874 | 868 | 953 | 9.8% |
| Net Income | 455 | 419 | 539 | 798 | 824 | 3.4% |
Balance Sheet
|
|---|
| Cash | 17 | 17 | 94 | 54 | 43 | -19.9% |
| Short Term Debt | 0 | 0 | 0 | 214 | 0 | -100.0% |
| Long Term Debt | 754 | 231 | 197 | 0 | 394 | |
Cash flow
|
|---|
| Capex | 3 | 11 | 3 | 9 | 128 | 1,335.7% |
Ratios
|
|---|
| Revenue growth | 10.6% | 13.3% | 11.2% | 3.0% | 5.8% | |
| EBITDA growth | 10.7% | 8.0% | 18.9% | -0.7% | 9.8% | |
| EBITDA Margin | 71.7% | 68.3% | 73.0% | 70.4% | 73.0% | 2.6% |
| Net Income Margin | 47.9% | 38.9% | 45.0% | 64.7% | 63.2% | -1.5% |
| SG&A, % of revenue | | | | | 0.4% | 0.4% |
| CAPEX, % of revenue | 0.3% | 1.0% | 0.2% | 0.7% | 9.8% | 9.1% |
| ROIC | 10.9% | 12.8% | 15.0% | 14.4% | 10.4% | -4.0% |
| ROE | 10.0% | 8.8% | 11.0% | 16.1% | 16.2% | 0.0% |
| Net Debt/EBITDA | 1.1x | 0.3x | 0.1x | 0.2x | 0.4x | 0.2x |
Revenue and profitability
The company's Revenue increased on 5.8% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from 23.6% to 19.9% in FY2016.
Net Income marign decreased slightly on 1.5 pp from 64.7% to 63.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 9.8%. The company showed CAPEX/Revenue growth of 8.8 pp from 1.0% in FY2013 to 9.8% in FY2016. For the last three years the average CAPEX/Revenue was 3.6%.
Return on investment
The company operates at good ROE (16.18%) while ROIC is low (10.42%). ROIC decreased on 4.0 pp from 14.4% to 10.4% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 0.2x to 0.4x in FY2016. Debt surged on 84.5% in FY2016 while cash dropped on 19.9% in FY2016.
Valuation
The company's trades at EV/EBITDA 0.4x and P/E 0.0x while industy averages are 15.6x and 19.1x. Noida Toll Bridge Company's EV/(EBITDA-CAPEX) is 0.4x with the industry average at 19.0x.
Appendix 1: Peers in Roads & Highways
Below we provide Noida Toll Bridge Company benchmarking against other companies in Roads & Highways 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.
