Exide Industries's growth is outstanding: revenue grew 20.4% annually over the last three years
02-05-2014 • About Exide Industries (
$EXIDEIND) • By InTwits
Have you thought about Exide Industries as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Exide Industries showed growth in the last financial year. The company's revenue surged on 30.6% in FY2014. In addition to revenue Exide Industries also keeps delivering EBITDA growth. It was 33.9% in FY2014
In the last 3 years Exide Industries showed fast revenue growth of 20.4% from FY2011 to FY2014 annually. EBITDA surged on 6.36% from FY2011 to FY2014 annually.
Exide Industries ($EXIDEIND) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 118,010 | 47,661 | 53,157 | 63,611 | 83,089 |
|---|
| Revenue growth, % | | -59.6% | 11.5% | 19.7% | 30.6% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 9,835 | 9,553 | 7,623 | 8,583 | 11,495 |
|---|
| EBITDA growth, % | | -2.9% | -20.2% | 12.6% | 33.9% |
|---|
| EBITDA margin, % | 8.33% | 20.0% | 14.3% | 13.5% | 13.8% |
|---|
| Net Income | 4,935 | 6,188 | 4,461 | 5,494 | 5,447 |
|---|
| Net Income margin, % | 4.18% | 13.0% | 8.39% | 8.64% | 6.56% |
|---|
| |
| CAPEX | 1,303 | 2,949 | 2,105 | 1,722 | 1,579 |
|---|
| CAPEX/Revenue, % | 1.10% | 6.19% | 3.96% | 2.71% | 1.90% |
|---|
| Debt | 1,741 | 1,009 | 322 | 512 | 152 |
|---|
| Cash | 234 | 201 | 472 | 2,161 | 2,817 |
|---|
| Net Debt/EBITDA | 0.2x | 0.1x | -0.0x | -0.2x | -0.2x |
|---|
| |
| ROIC, % | 45.9% | 34.2% | 24.2% | 24.3% | 29.5% |
|---|
| ROE, % | 33.9% | 28.8% | 17.6% | 19.1% | 16.7% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased slightly on 0.300 pp from 13.5% to 13.8% in FY2014. In the longer period EBITDA margin dropped on 6.20 pp from 20% in FY2011 to 13.8% in FY2014.
We call Exide Industries an attractive growth stock as together with the growth it delivers high ROIC at 29.5%. During the last three years it dropped - it was 34.2% in FY2011. It's average level of ROIC for the last three years was 26.0%.
Exide Industries's Net Income margin dropped on 2 pp from 8.60% to 6.60% in FY2014. In the longer period Exide Industries showed big decline in Net Income margin of 6.40 pp from 13% in FY2011 to 6.60% in FY2014.
Exide Industries operates at ROE of 16.7%. For the last three years the average ROE was 17.8%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.90% in FY2014. Exide Industries showed big decline in CAPEX/Revenue of 4.29 pp from 6.19% in FY2011 to 1.90% in FY2014. For the last three years the average CAPEX/Revenue was 2.86%.
Leverage (Debt)
Exide Industries has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage dropped on 0.32x from 0.08x in FY2011 to -0.23x in FY2014.
Peers in Auto Parts & Equipment
Below you can find Exide Industries 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 EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Amtek Auto ($AMTEKAUTO) | | | 25.1% | | 20.7% |
| |
|---|
| Median (1 company) | | | 25.1% | | 20.7% |
|---|
| Exide Industries ($EXIDEIND) | 8.3% | 20.0% | 14.3% | 13.5% | 13.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Amtek Auto ($AMTEKAUTO) | | | 18.9% | | 27.1% |
| |
|---|
| Median (1 company) | | | 18.9% | | 27.1% |
|---|
| Exide Industries ($EXIDEIND) | 1.1% | 6.2% | 4.0% | 2.7% | 1.9% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Amtek Auto ($AMTEKAUTO) | | | 8.7% | | |
| Lumax Automotive Systems ($LUMAXAUTO) | | | 0.3% | 13.9% | |
| |
|---|
| Median (2 companies) | | | 4.5% | 13.9% | |
|---|
| Exide Industries ($EXIDEIND) | 45.9% | 34.2% | 24.2% | 24.3% | 29.5% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Amtek Auto ($AMTEKAUTO) | | | 4.8x | | 5.3x |
| Lumax Automotive Systems ($LUMAXAUTO) | | | 10.5x | 2.9x | 0.0x |
| |
|---|
| Median (2 companies) | | | 7.6x | 2.9x | 2.7x |
|---|
| Exide Industries ($EXIDEIND) | 0.2x | 0.1x | -0.0x | -0.2x | -0.2x |
