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. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
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P&L
|
---|
Revenue | 31,315 | 36,712 | 36,744 | 37,320 | 40,382 | 8.2% |
SG&A | | | | 1,038 | 1,462 | 40.8% |
EBITDA | 10,540 | 6,760 | 8,968 | 10,556 | 12,128 | 14.9% |
Net Income | 1,959 | 2,689 | 2,885 | 3,113 | 4,244 | 36.3% |
Balance Sheet
|
---|
Cash | 2,076 | 4,125 | 5,958 | 12,270 | 10,576 | -13.8% |
Short Term Debt | 27,609 | 47,106 | 76,708 | 89,984 | 77,121 | -14.3% |
Long Term Debt | 59,872 | 75,734 | 89,291 | 104,610 | 132,190 | 26.4% |
Cash flow
|
---|
Capex | 1,476 | 2,196 | 2,934 | 2,330 | 2,054 | -11.8% |
Ratios
|
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Revenue growth | -39.5% | 17.2% | 0.1% | 1.6% | 8.2% | |
EBITDA growth | 180.8% | -35.9% | 32.7% | 17.7% | 14.9% | |
EBITDA Margin | 33.7% | 18.4% | 24.4% | 28.3% | 30.0% | 1.7% |
Net Income Margin | 6.3% | 7.3% | 7.9% | 8.3% | 10.5% | 2.2% |
SG&A, % of revenue | | | | 2.8% | 3.6% | 0.8% |
CAPEX, % of revenue | 4.7% | 6.0% | 8.0% | 6.2% | 5.1% | -1.2% |
ROIC | 14.1% | 4.7% | 4.5% | 4.2% | 4.3% | 0.1% |
ROE | 21.4% | 23.0% | 19.4% | 17.2% | 17.8% | 0.5% |
Net Debt/EBITDA | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x | -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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
|
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Median (35 companies) | -35.6% | 16.9% | 2.7% | 5.0% | 3.3% |
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Tube Investments Of India ($TUBEINVEST) | | 17.2% | 0.1% | 1.6% | 8.2% |
Top companies by EBITDA margin, %
Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
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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) ($BANCOINDIA) | 12.9% | 12.2% | 11.6% | 14.4% | |
|
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Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.1% | 12.2% |
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Tube Investments Of India ($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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | |
|
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Median (24 companies) | 8.0% | 5.6% | 4.5% | 4.8% | 4.5% |
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Tube Investments Of India ($TUBEINVEST) | 4.7% | 6.0% | 8.0% | 6.2% | 5.1% |
Top companies by ROIC, %
Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
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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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
|
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Median (48 companies) | 16.5% | 16.4% | 12.7% | 14.5% | 6.7% |
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Tube Investments Of India ($TUBEINVEST) | 14.1% | 4.7% | 4.5% | 4.2% | 4.3% |
Top companies by Net Debt / EBITDA
Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
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Autoline Industries ($AUTOIND) | 3.1x | 3.2x | 4.0x | 12.0x | |
Reil Electricals India ($REILELEC) | -0.1x | -0.0x | 1.5x | 9.1x | |
Steel Strips Wheels ($SSWL) | 4.6x | 5.4x | 6.3x | 6.5x | 5.6x |
Automotive Stampings & Assemblies ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
Ucal Fuel Systems ($UCALFUEL) | 4.1x | 4.3x | 5.6x | 5.7x | |
|
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Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.1x |
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Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x |