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Tube Investments Of India Net Income jumped on 36.3% in 2015 and EBITDA Margin increased slightly on 1.7 pp from 28.3% to 30.0%

05-05-2015 • About Tube Investments Of India ($TUBEINVEST) • By InTwits

Tube Investments Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Tube Investments Of India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.0%. At the same time it's a lot of higher than industry average of 5.0%.
  • CAPEX is quite volatile: 9,169 in FY2015, 14,197 in FY2014, 9,313 in FY2013, 6,599 in FY2012, 5,636 in FY2011
  • The company has potentially unprofitable business model: ROIC is at 4.3%
  • It operates with high leverage: Net Debt/EBITDA is 16.4x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Tube Investments Of India ($TUBEINVEST) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue31,31536,71236,74437,32040,3828.2%
SG&A1,0381,46240.8%
EBITDA10,5406,7608,96810,55612,12814.9%
Net Income1,9592,6892,8853,1134,24436.3%
Balance Sheet
Cash2,0764,1255,95812,27010,576-13.8%
Short Term Debt27,60947,10676,70889,98477,121-14.3%
Long Term Debt59,87275,73489,291104,610132,19026.4%
Cash flow
Capex1,4762,1962,9342,3302,054-11.8%
Ratios
Revenue growth-39.5%17.2%0.1%1.6%8.2%
EBITDA growth180.8%-35.9%32.7%17.7%14.9%
EBITDA Margin33.7%18.4%24.4%28.3%30.0%1.7%
Net Income Margin6.3%7.3%7.9%8.3%10.5%2.2%
SG&A, % of revenue2.8%3.6%0.8%
CAPEX, % of revenue4.7%6.0%8.0%6.2%5.1%-1.2%
ROIC14.1%4.7%4.5%4.2%4.3%0.1%
ROE21.4%23.0%19.4%17.2%17.8%0.5%
Net Debt/EBITDA8.1x17.6x17.8x17.3x16.4x-0.9x

Revenue and profitability


The company's Revenue increased on 8.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 28.3% to 30.0% in FY2015.

SG&A as a % of Revenue increased slightly on 0.84 pp from 2.8% to 3.6% in FY2015.

Net Income marign increased on 2.2 pp from 8.3% to 10.5% in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 Tube Investments Of India had CAPEX/Revenue of 5.1%. Tube Investments Of India's CAPEX/Revenue decreased slightly on 0.89 pp from 6.0% in FY2012 to 5.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.4%.

Return on investment


The company operates at good ROE (17.76%) while ROIC is low (4.34%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.51 pp from 17.2% to 17.8% in FY2015.

Leverage (Debt)


Debt level is 16.4x Net Debt / EBITDA and 17.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 17.3x to 16.4x in FY2015. Debt increased on 7.6% in FY2015 while cash dropped on 13.8% in FY2015.

Appendix 1: Peers in Auto Parts & Equipment


Below we provide Tube Investments Of India benchmarking against other companies in Auto Parts & Equipment 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.

Top companies by Revenue growth, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Exide Industries ($EXIDEIND)11.5%19.7%30.6%14.8%
Motherson Sumi Systems ($MOTHERSUMI)-86.4%79.1%71.3%20.2%
Fiem Industries ($FIEMIND)-54.4%25.2%13.4%18.7%
Suprajit Engineering ($SUPRAJIT)-53.1%22.2%9.4%17.9%
Amara Raja Batteries ($AMARAJABAT)-66.9%34.3%25.1%16.1%
 
Median (35 companies)-35.6%16.9%2.7%5.0%3.3%
Tube Investments Of India ($TUBEINVEST)17.2%0.1%1.6%8.2%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Shanthi Gears ($SHANTIGEAR)44.6%37.9%30.2%27.8%12.0%
Amtek Auto ($AMTEKAUTO)25.1%20.7%14.8%
Shivam Autotech ($SHIVAMAUTO)23.2%24.1%24.1%20.6%
Suprajit Engineering ($SUPRAJIT)16.5%16.2%17.0%17.2%
Banco Products (India) ($BANCOINDIA)12.9%12.2%11.6%14.4%
 
Median (34 companies)10.8%10.8%9.8%10.1%12.2%
Tube Investments Of India ($TUBEINVEST)33.7%18.4%24.4%28.3%30.0%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Amtek Auto ($AMTEKAUTO)18.9%27.1%30.3%
Amara Raja Batteries ($AMARAJABAT)2.9%3.7%2.5%10.9%
Subros ($SUBROS)11.6%16.6%10.7%9.3%
Lumax Auto Technologies ($LUMAXTECH)3.7%5.1%7.3%7.8%
Sona Koyo Steering Systems ($SONASTEER)5.9%9.8%6.6%7.1%
 
Median (24 companies)8.0%5.6%4.5%4.8%4.5%
Tube Investments Of India ($TUBEINVEST)4.7%6.0%8.0%6.2%5.1%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Amara Raja Batteries ($AMARAJABAT)30.5%32.1%34.5%30.3%
Exide Industries ($EXIDEIND)34.2%24.2%24.3%29.5%26.9%
Suprajit Engineering ($SUPRAJIT)32.4%31.8%28.0%26.1%
Motherson Sumi Systems ($MOTHERSUMI)23.7%13.5%16.5%25.0%
Munjal Showa ($MUNJALSHOW)18.8%29.9%23.8%22.5%
 
Median (48 companies)16.5%16.4%12.7%14.5%6.7%
Tube Investments Of India ($TUBEINVEST)14.1%4.7%4.5%4.2%4.3%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Autoline Industries ($AUTOIND)3.1x3.2x4.0x12.0x
Reil Electricals India ($REILELEC)-0.1x-0.0x1.5x9.1x
Steel Strips Wheels ($SSWL)4.6x5.4x6.3x6.5x5.6x
Automotive Stampings & Assemblies ($ASAL)1.8x1.1x3.9x6.3x
Ucal Fuel Systems ($UCALFUEL)4.1x4.3x5.6x5.7x
 
Median (44 companies)2.1x1.2x1.8x0.7x1.1x
Tube Investments Of India ($TUBEINVEST)8.1x17.6x17.8x17.3x16.4x