Return on investments of companies for construction of residential and non-residential buildings

ranking 11/05/2017

Information agency Credinform represents the ranking of Russian companies for construction of residential and non-residential buildings. The enterprises with the largest volume of revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2014 and 2015). Then they were ranked by return on investments in 2015 (Table 1).

Return on investments (%) is calculated as a ratio of net profit (loss) to the value of net assets. The indicator characterizes the level of profitability from each ruble received from investments, i.e. the amount of monetary units required by an enterprise for receiving one monetary unit of net profit. With the help of this indicator it is possible to assess the advisability of raising of borrowed funds at a certain percent.

Normative values for profitability indicators are not provided, because they vary depending on the industry, in which an enterprise operates. The indicators of each particular company should be considered in comparison with industry indicators.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of company’s financial indicators and ratios.

Table 1. Net profit, revenue, return on investments, solvency index Globas-i® of the largest Russian companies for construction of residential and non-residential buildings (TOP-10)
Name, INN, rgionNet profit for 2015, mln RUBRevenue for 2015, mln RUBRevenue for 2015 by 2014, %Return on investments, 2015 г., %Solvency index Globas-i®
FSUE SPETSSTROIINZHINIRING PRI FEDERALNOM AGENTSTVE SPETSIALNOGO STROITELSTVA
INN 5047054473 Moscow
-5 062,4 79 248,8 10 188,83 273
High
INVESTMENTS AND FINANCES CONSTRUCTION COMPANY ARKS (IFCC ARKS) LLC
INN 7714275324 Moscow
1 088,5 35 346,3 9 135,96 245
High
RENAISSANCE CONSTRUCTION LTD
INN 7708185129 Moscow
826,2 28 970,9 -37 43,11 212
High
LSR. NEDVIZHIMOST-SEVERO-ZAPAD LLC
INN 7826090547 Saint-Petersburg
6 864,6 27 937,3 199 42,87 185
The highest
VELESSTROY LLC
INN 7709787790 Moscow
1 088,5 75 051,2 49 23,66 238
High
SSMO LENSPETSSMU NAO
INN 7802084569 Saint-Petersburg
6 284,5 22 453,7 3 20,91 174
The highest
BALTSTROI NAO
INN 7804079525 Saint-Petersburg
177,1 23 379,2 16 16,95 242
High
SALAVATNEFTEKHIMREMSTROI NAO
INN 0266012678 Republic of Bashkortostan
180,1 26 725,0 16 13,96 234
High
DOMOSTROITELNYI KOMBINAT №1 NAO
INN 7714046959 Moscow
191,8 29 107,3 -25 1,91 254
High
JSC CONCERN TITAN-2
INN 7827004484 Leningrad region
-14,2 29 998,9 60 -0,93 259
High
Total in the group of TOP-10 companies
(* - group average value)
11 624,6 378 218,5 *14 *48,72  
Total in the group of TOP-100 companies
((* - group average value)
43 003,0 1 099 561,1 *18 *119,88  
Industry average value -0,7 50,7 -12 -12,00  

The average values of the return on investments in 2015 as well in the group of TOP-10, as in the group TOP-100 companies are significantly higher than the industry average. At the same time, JSC CONCERN TITAN-2 has a negative value of the indicator.

Return on investments and revenue of the largest Russian companies for construction of residential and non-residential buildings (TOP-10)
Picture 1. Return on investments and revenue of the largest Russian companies for construction of residential and non-residential buildings (TOP-10)

The volume of revenue of 10 the largest companies made 34% of the total revenue of 100 the largest enterprises in 2015. It points to a relatively high level of competition in the industry. The largest company in terms of volume of revenue was FSUE SPETSSTROIINZHINIRING PRI FEDERALNOM AGENTSTVE SPETSIALNOGO STROITELSTVA (Picture 2).

Shares of TOP-10 enterprises in the total VOLUME revenue of the group of TOP-100 companies for 2015, %
Picture 2. Shares of TOP-10 enterprises in the total VOLUME revenue of the group of TOP-100 companies for 2015, %

The total volume of profit of 10 the largest companies was 39% of the total revenue of 100 the largest enterprises in 2015. The largest company in terms of the profit volume was LSR. NEDVIZHIMOST-SEVERO-ZAPAD LLC (Picture 3).

Shares of TOP-10 enterprises in the total volume of profit of the group of TOP-100 companies for 2015, %
Picture 3. Shares of TOP-10 enterprises in the total volume of profit of the group of TOP-100 companies for 2015, %

All TOP-10 companies got the highest or high solvency index Globas-i®, that points to their ability to repay their debts in time and fully.

Seven from TOP-10 companies reduced indicators of revenue in 2015 compared to the previous period or had a loss (are marked with red filling in Table 1).

In the group of TOP-100 companies there were 8 unprofitable companies in 2014, and in 2015 their number decreased to 12. At the same time, the profit volume grew by 18% in 2015.

Indicators of the return on investments in the dynamics of Russian companies for the construction of residential and non-residential buildings testify to an unsuccessful state of business in terms of investment activity in the industry in recent years (Picture 4).

Average industry values of the return on investments of Russian companies for construction of residential and non-residential buildings
Picture 4. Average industry values of the return on investments of Russian companies for construction of residential and non-residential buildings

As a whole the indicators of the industry of construction of residential and non-residential buildings in monetary terms have been growing have been increasing at an ever-increasing rates it the last few years, that is confirmed by the data of the Federal State Statistics Service (Picture 5 and Table 2).

Growth rates (rates of drawdown) of the volume of building construction in monetary terms from year to year, %.
Picture 5. Growth rates (rates of drawdown) of the volume of building construction in monetary terms from year to year, %.

In the period from 2006 to 2016 the greatest volume of buildings construction was observed in 2016, the smallest - in 2006. (Table 2).

Table 2. The volume of building construction in monetary terms, mln RUB
20062007200820092010201120122013201420152016
7 938,1 14 682,0 35 113,9 34 421,5 38 768,8 36 463,9 32 566,9 33 896,5 41 366,7 61 546,6 102 957,7
*) In Table 2 the slowdown in volumes is marked with a red filling, with a green filling – the growth (year-on-year).

Companies for the construction of residential and non-residential buildings are distributed unevenly throughout the country. Their maximum concentration is observed in the metropolitan areas with the largest population and the concentration of financial resources in the country. This is confirmed by the information of the Information and Analytical system Globas-i®, according to which 100 the largest companies in terms of revenue for 2015 are registered in 26 regions of Russia (Picture 6).

Distribution of 100 the largest companies for the construction of residential and non-residential buildings by regions of Russia
Picture 6. Distribution of 100 the largest companies for the construction of residential and non-residential buildings by regions of Russia