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Srei Infrastructure Finance reports 11.0% CAPEX growth and 1.3% Revenue growth

12 May 2016 • About Srei Infrastructure Finance ($SRI) • By InTwits

Srei Infrastructure Finance reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is declining: 72.8% in FY2016 vs. 78.5% in FY2015 vs. 80.6% in FY2012
  • Srei Infrastructure Finance has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.3%. At the same time it's a lot of higher than industry average of 3.0%.
  • CAPEX is quite volatile: 1,929 in FY2016, 1,737 in FY2015, 3,947 in FY2014, 2,592 in FY2013, 7,167 in FY2012
  • It operates with high leverage: Net Debt/EBITDA is 8.7x while industry average is 4.3x
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. INR201220132014201520162016/2015
P&L
Revenue24,46331,10731,24631,95432,3781.3%
EBITDA19,72926,10126,14325,07023,587-5.9%
Net Income1,1142,6321,3851,302725-44.3%
Balance Sheet
Cash2,3051,5322,6352,8401,673-41.1%
Short Term Debt83,08894,912126,636135,216144,3526.8%
Long Term Debt57,27667,54071,03768,04262,375-8.3%
Cash flow
Capex7,1672,5923,9471,7371,92911.0%
Ratios
Revenue growth49.3%27.2%0.4%2.3%1.3%
EBITDA growth53.5%32.3%0.2%-4.1%-5.9%
EBITDA Margin80.6%83.9%83.7%78.5%72.8%-5.6%
Net Income Margin4.6%8.5%4.4%4.1%2.2%-1.8%
CAPEX, % of revenue29.3%8.3%12.6%5.4%6.0%0.5%
ROE3.6%8.0%4.0%3.7%2.0%-1.7%
Net Debt/EBITDA7.0x6.2x7.5x8.0x8.7x0.7x

Revenue and profitability


The company's Revenue increased slightly on 1.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 10.5 pp from 4.0% to 14.5% in FY2016.

Net Income marign decreased slightly on 1.8 pp from 4.1% to 2.2% in FY2016.

Capital expenditures (CAPEX) and working capital investments


In FY2016 the company had CAPEX/Revenue of 6.0%. The company's CAPEX/Revenue decreased on 2.4 pp from 8.3% in FY2013 to 6.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 8.0%.

Leverage (Debt)


Debt level is 8.7x Net Debt / EBITDA and 8.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 8.0x to 8.7x in FY2016. Debt increased slightly on 1.7% in FY2016 while cash dropped on 41.1% in FY2016.

Appendix 1: Peers in Finance (including NBFCs)


Below you can find Srei Infrastructure Finance benchmarking vs. other companies in Finance (including NBFCs) 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  FY2012 FY2013 FY2014 FY2015 FY2016
Bajaj Holdings & Investment ($BAUD)-66.6%12.7%23.2%29.9%
 
Median (1 company)-66.6%12.7%23.2%29.9%
Srei Infrastructure Finance ($SRI)27.2%0.4%2.3%1.3%


Top companies by EBITDA margin, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Bajaj Holdings & Investment ($BAUD)96.2%95.5%94.4%92.7%
 
Median (1 company)96.2%95.5%94.4%92.7%
Srei Infrastructure Finance ($SRI)80.6%83.9%83.7%78.5%72.8%


Top companies by CAPEX/Revenue, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Bajaj Holdings & Investment ($BAUD)0.0%0.0%0.0%0.0%
 
Median (1 company)0.0%0.0%0.0%0.0%
Srei Infrastructure Finance ($SRI)29.3%8.3%12.6%5.4%6.0%


Top companies by ROIC, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Bajaj Holdings & Investment ($BAUD)3.6%3.4%3.5%3.9%
 
Median (1 company)3.6%3.4%3.5%3.9%
Srei Infrastructure Finance ($SRI)


Top companies by Net Debt / EBITDA

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Bajaj Holdings & Investment ($BAUD)-0.2x-0.1x-0.2x-0.0x
 
Median (1 company)-0.2x-0.1x-0.2x-0.0x
Srei Infrastructure Finance ($SRI)7.0x6.2x7.5x8.0x8.7x