Eih reports 95.4% Net Income growth while 1.0 pp EBITDA Margin decline from 22.7% to 21.6%
26 May 2016 • About Eih (
$EIHD) • By InTwits
Eih reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eih has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's in pair with industry average of 10.1%.
- CAPEX is quite volatile: 912 in FY2016, 783 in FY2015, 816 in FY2014, 626 in FY2013, 1,484 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.8x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eih ($EIHD) key annual financial indicators
| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14,072 | 14,685 | 15,466 | 16,683 | 17,869 | 7.1% |
| SG&A | | | | | 457 | |
| EBITDA | 3,256 | 2,967 | 3,358 | 3,779 | 3,865 | 2.3% |
| Net Income | 1,223 | 418 | 1,071 | 631 | 1,233 | 95.4% |
Balance Sheet
|
|---|
| Cash | 942 | 1,164 | 1,213 | 1,369 | 1,438 | 5.1% |
| Short Term Debt | 2,107 | 3,621 | 1,987 | 1,985 | 2,784 | 40.2% |
| Long Term Debt | 3,477 | 3,819 | 2,531 | 2,196 | 1,666 | -24.2% |
Cash flow
|
|---|
| Capex | 1,910 | 1,767 | 1,094 | 1,498 | 1,805 | 20.4% |
Ratios
|
|---|
| Revenue growth | 12.4% | 4.4% | 5.3% | 7.9% | 7.1% | |
| EBITDA growth | 20.7% | -8.9% | 13.2% | 12.5% | 2.3% | |
| EBITDA Margin | 23.1% | 20.2% | 21.7% | 22.7% | 21.6% | -1.0% |
| Net Income Margin | 8.7% | 2.8% | 6.9% | 3.8% | 6.9% | 3.1% |
| SG&A, % of revenue | | | | | 2.6% | 2.6% |
| CAPEX, % of revenue | 13.6% | 12.0% | 7.1% | 9.0% | 10.1% | 1.1% |
| ROIC | 5.5% | 4.5% | 5.8% | 6.3% | 6.5% | 0.1% |
| ROE | 4.8% | 1.6% | 4.1% | 2.4% | 4.7% | 2.3% |
| Net Debt/EBITDA | 1.4x | 2.1x | 1.0x | 0.7x | 0.8x | 0.0x |
Revenue and profitability
The company's Revenue increased on 7.1% in FY2016. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 22.7% to 21.6% in FY2016.
Net Income marign increased on 3.1 pp from 3.8% to 6.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.1% in FY2016. CAPEX/Revenue decreased slightly on 1.9 pp from 12.0% in FY2013 to 10.1% in FY2016. Average CAPEX/Revenue for the last three years was 8.7%.
Return on investment
The company operates at low ROIC (6.47%) and ROE (4.69%). ROIC showed almost no change in FY2016. ROE increased on 2.3 pp from 2.4% to 4.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.2x. Net Debt / EBITDA increased on 0.035x from 0.7x to 0.8x in FY2016. Debt increased on 6.4% in FY2016 while cash increased on 5.1% in FY2016.
Appendix 1: Peers in Hotels
Below you can find Eih benchmarking vs. other companies in Hotels 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.
