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Suprajit Engineering CAPEX jumped on 63.1% in 2015 and Revenue jumped on 12.2%

29-05-2015 • About Suprajit Engineering ($SUPRAJIT) • By InTwits

Suprajit Engineering reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is relatively stable: 16.2% in FY2015 vs. 17.2% in FY2014 vs. 16.5% in FY2011
  • Suprajit Engineering has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 5.6%.
  • CAPEX is quite volatile: 2,610 in FY2015, 392 in FY2014, 117 in FY2013, 82.8 in FY2012, 9.8 in FY2011
  • The company has highly profitable business model: ROIC is at 22.9%
  • It operates with medium-size leverage: Net Debt/EBITDA is 1.6x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Suprajit Engineering ($SUPRAJIT) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue3,4574,2264,6255,4526,11812.2%
EBITDA5696877869409915.5%
Net Income327398471508503-1.0%
Balance Sheet
Cash2329726552-19.9%
Short Term Debt4775137211,1341,005-11.4%
Long Term Debt18231139242565554.0%
Cash flow
Capex26330033125341363.1%
Ratios
Revenue growth-53.1%22.2%9.4%17.9%12.2%
EBITDA growth24.2%20.7%14.4%19.6%5.5%
EBITDA Margin16.5%16.2%17.0%17.2%16.2%-1.0%
Net Income Margin9.5%9.4%10.2%9.3%8.2%-1.1%
CAPEX, % of revenue7.6%7.1%7.2%4.6%6.7%2.1%
ROIC32.4%31.8%28.0%26.1%22.9%-3.2%
ROE39.2%35.2%31.8%27.4%22.6%-4.8%
Net Debt/EBITDA1.1x1.2x1.3x1.6x1.6x0.0x

Revenue and profitability


Suprajit Engineering's Revenue jumped on 12.2% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 17.2% to 16.2% in FY2015.

Net Income marign decreased slightly on 1.1 pp from 9.3% to 8.2% in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 Suprajit Engineering had CAPEX/Revenue of 6.7%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 6.2%.

Return on investment


The company operates at high and attractive ROIC (22.92%) and ROE (22.57%). ROIC decreased on 3.2 pp from 26.1% to 22.9% in FY2015. ROE decreased on 4.8 pp from 27.4% to 22.6% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.7x. Net Debt / EBITDA increased on 0.031x from 1.6x to 1.6x in FY2015. Debt increased on 6.4% in FY2015 while cash dropped on 19.9% in FY2015.

Valuation


The company's trades at EV/EBITDA 16.6x and P/E 29.6x while industy averages are 10.5x and 26.1x. Suprajit Engineering's EV/(EBITDA-CAPEX) is 28.5x with the industry average at 4.7x.

Appendix 1: Peers in Auto Parts & Equipment


Below you can find Suprajit Engineering benchmarking vs. other companies in Auto Parts & Equipment 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.

Top companies by Revenue growth, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
India Nippon Electricals ($INDNIPPON)13.6%3.2%-2.4%24.8%
Amara Raja Batteries ($AMARAJABAT)34.3%25.1%16.1%22.6%
Enkei Wheels (India) ($ENKEIWHEL)16.9%1.3%11.7%21.6%
Ip Rings ($IPRINGLTD)4.0%2.4%-0.1%19.5%
Exide Industries ($EXIDEIND)11.5%19.7%30.6%14.8%
 
Median (31 companies)-15.5%16.9%2.4%4.9%8.6%
Suprajit Engineering ($SUPRAJIT)22.2%9.4%17.9%12.2%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Tube Investments Of India ($TUBEINVEST)33.7%18.4%24.4%28.3%30.0%
Shivam Autotech ($SHIVAMAUTO)23.2%24.1%24.1%20.6%18.7%
Amara Raja Batteries ($AMARAJABAT)15.0%14.9%15.7%14.2%17.0%
Amtek Auto ($AMTEKAUTO)25.1%20.7%14.8%
Triton Valves ($TRITONV)12.3%9.8%11.3%11.3%14.2%
 
Median (35 companies)10.8%10.8%9.8%10.1%10.3%
Suprajit Engineering ($SUPRAJIT)16.5%16.2%17.0%17.2%16.2%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Amtek Auto ($AMTEKAUTO)18.9%27.1%30.3%
Jbm Auto ($JBMA)18.1%9.8%8.4%14.4%
Rico Auto Industries ($RICOAUTO)9.5%5.8%10.9%5.7%14.2%
Shivam Autotech ($SHIVAMAUTO)11.6%11.6%4.1%4.9%12.5%
Amara Raja Batteries ($AMARAJABAT)2.9%3.7%2.5%10.9%9.6%
 
Median (24 companies)8.0%5.6%4.5%5.2%4.6%
Suprajit Engineering ($SUPRAJIT)7.6%7.1%7.2%4.6%6.7%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Amara Raja Batteries ($AMARAJABAT)30.5%32.1%34.5%30.3%35.4%
Exide Industries ($EXIDEIND)34.2%24.2%24.3%29.5%26.9%
Motherson Sumi Systems ($MOTHERSUMI)23.7%13.5%16.5%25.0%24.9%
Munjal Showa ($MUNJALSHOW)18.8%29.9%23.8%22.5%24.9%
Munjal Auto Industries ($MUNJALAU)26.3%30.6%21.5%21.1%19.0%
 
Median (48 companies)15.2%15.7%11.8%12.7%13.4%
Suprajit Engineering ($SUPRAJIT)32.4%31.8%28.0%26.1%22.9%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Tube Investments Of India ($TUBEINVEST)8.1x17.6x17.8x17.3x16.4x
Autoline Industries ($AUTOIND)3.1x3.2x4.0x12.0x
Reil Electricals India ($REILELEC)-0.1x-0.0x1.5x9.1x0.0x
Steel Strips Wheels ($SSWL)4.6x5.4x6.3x6.5x5.6x
Automotive Stampings & Assemblies ($ASAL)1.8x1.1x3.9x6.3x
 
Median (44 companies)2.2x1.3x2.2x0.7x1.0x
Suprajit Engineering ($SUPRAJIT)1.1x1.2x1.3x1.6x1.6x