Information Agency Credinform presents a review of activity trends of the largest buildings construction companies in Russia.
Construction companies with the largest annual revenue (TOP-10 and TOP-1000) have been selected for the analysis, according to the data from the Statistical Register for the latest available accounting periods (2015 — 2017). The analysis was based on the data from the Information and Analytical system Globas.
Average net assets of TOP-1000 companies tended to decrease during the last decade (Picture 1).
The share of TOP-1000 companies with insufficiency of property tends to increase within the last 3 years (Picture 2).
In 2017 sales revenue of 10 industry leaders amounted to 18% of total revenue of TOP-1000 companies (Picture 3). This is an indicator of a high level of competition within the industry.
In general, average industry revenue tends to decrease during the decade (Picture 4).
Profit and loss
During the decade average industry net profit tended to decrease (Picture 5).
During the last 3 years average industry net profit of TOP-1000 companies increased, as well as average net loss (Picture 6).
Key financial ratios
During the last decade average values of total liquidity ratio of TOP-1000 companies were below the recommended value — from 1,0 to 2,0, tending to increase (Picture 7).
During the last decade, average industry values of return on investment ratio tended to decrease (Picture 8).
During the last decade, this activity ratio tended to decrease (Picture 9).
46% of TOP-1000 companies are included in the Register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation. In general, their share in total revenue of TOP-1000 in 2017 amounted to 17% that is lower than the average national value (Picture 10).
Key regions of activity
TOP-1000 companies are unevenly located throughout Russian territory and are registered in 76 regions. Over 66% of their revenue are concentrated in Moscow, St. Petersburg and the Moscow region (Picture 11).
Financial position score
Assessment of financial state of TOP-1000 companies indicates that most of the companies have an above average financial position (Picture 12).
Solvency index Globas
The majority of TOP-1000 companies have got a superior, high, strong or medium Solvency index Globas, that indicates their capability to meet liabilities timely and in full (Picture 13).
According to the Federal Statistics Service, the share of buildings construction companies in the national revenue from sale of goods and services in 2018 amounted to 1,67%.
A comprehensive assessment of the largest buildings construction companies in Russia, that considers key indexes, financial figures and ratios, is indicative of negative trends in the industry (Table 1).
|Trends and assessment factors||Relative share of the factor, %|
|Rate of growth (decline) of average industry net assets||-10|
|Increase/ Decrease of share of companies with negative net assets||-10|
|Rate of growth (decline) of average revenue||-10|
|Level of competition/ monopolization||10|
|Rate of growth (decline) of average net profit (loss)||-10|
|Increase/ Decrease of average net profit of TOP-1000 companies||10|
|Increase/ Decrease of average net loss of TOP-1000 companies||-10|
|Increase/ Decrease of average total liquidity ratio||5|
|Increase/ Decrease of average return on investment ratio||-10|
|Increase/ Decrease of average assets turnover ratio||-10|
|Share of small and medium-sized business within the region by revenue over 22%||-10|
|Financial standing (majority share)||10|
|Solvency index Glogas (majority share)||10|
|Average factors' value||-2,7|
positive trend (factor), negative trend (factor).
Information agency Credinform presents ranking of the largest companies engaged in construction of buildings. Enterprises with the largest volume of annual revenue (TOP-10), were selected for the analysis, according to the data from the Statistical Register for the latest available periods (for 2015-2017). Then they were ranked by working capital to current assets ratio (Table 1).The analysis was made on the basis of the data of the Information and Analytical system Globas.
|Name, INN, region||Revenue, million RUB||Net profit (loss), million RUB||Working capital to current assets ratio (x), > 0,1||Solvency Index Globas|
|LLC LSR. Real Estate-SZ
|JSC TEK MOSENERGO
|JSC RENAISSANSE CONSTRUCTION
|LLC MIP-STROI №1
|JSC Armed forces infrastructure development directorate general
|FGUP GVSU №14
|Total for TOP-10||515455,4||567645,0||4413,7||1244,2|
|Average for TOP-10 companies||51545,5||56764,5||441,4||124,4||-0,01||-0,02|
|Average industrial value||58,36||58,0||0,2||-0,4||-0,29||-0,25|
— growth of indicator to the previous period, — decrease of indicator to the previous period.
The average indicator of the working capital to current assets ratio of TOP-10 companies is characterized with negative value and above the average industrial value. Only one company of the group showed result above the recommended value in 2017.
During 10 years average industrial indicators of the working capital to current assets ratio have negative values with increasing tendency. (Picture 2).