Coromandel Engineering Company reports 1,117% EBITDA growth and 9.4 pp EBITDA Margin growth from 0.92% to 10.4%
28-04-2015 • About Coromandel Engineering Company (
$COROENGG) • By InTwits
Coromandel Engineering Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.4% in FY2015, 0.9% in FY2014, 2.7% in FY2013, -11.9% in FY2012, 9.0% in FY2011
- Coromandel Engineering Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 4.6%.
- CAPEX is quite volatile: 5.9 in FY2015, 76.9 in FY2014, 83.7 in FY2013, 77.6 in FY2012, 55.7 in FY2011
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Coromandel Engineering Company ($COROENGG) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,127 | 1,697 | 2,160 | 1,991 | 2,143 | 7.6% |
| EBITDA | 101 | -201 | 59 | 18 | 222 | 1,116.7% |
| Net Income | 29 | -215 | -54 | -89 | 11 | |
Balance Sheet
|
|---|
| Cash | 7 | 10 | 5 | 8 | 2 | -81.0% |
| Short Term Debt | 606 | 417 | 430 | 676 | 707 | 4.6% |
| Long Term Debt | 120 | 260 | 420 | 326 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 56 | 78 | 84 | 77 | 6 | -92.4% |
Ratios
|
|---|
| Revenue growth | -54.9% | 50.6% | 27.3% | -7.9% | 7.6% | |
| EBITDA growth | 81.8% | -299.3% | -129.1% | -68.9% | 1,116.7% | |
| EBITDA Margin | 9.0% | -11.9% | 2.7% | 0.9% | 10.4% | 9.4% |
| Net Income Margin | 2.6% | -12.6% | -2.5% | -4.5% | 0.5% | 5.0% |
| CAPEX, % of revenue | 4.9% | 4.6% | 3.9% | 3.9% | 0.3% | -3.6% |
| ROIC | 10.4% | -21.9% | 3.4% | -0.3% | 15.0% | 15.3% |
| ROE | 15.9% | | | | 3.1% | 3.1% |
| Net Debt/EBITDA | 7.1x | | 14.4x | 54.6x | 3.2x | -51.4x |
Revenue and profitability
Coromandel Engineering Company's Revenue increased on 7.6% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.4 pp from 0.92% to 10.4% in FY2015.
Net Income marign increased on 5.0 pp from -4.5% to 0.52% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Coromandel Engineering Company's CAPEX/Revenue was 0.27% in FY2015. CAPEX/Revenue decreased on 4.3 pp from 4.6% in FY2012 to 0.27% in FY2015. For the last three years the average CAPEX/Revenue was 2.7%.
Return on investment
The company operates at good ROIC (14.96%) while ROE is low (3.06%). ROIC jumped on 15.3 pp from -0.33% to 15.0% in FY2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 51.4x from 54.6x to 3.2x in FY2015. Debt dropped on 29.5% in FY2015 while cash dropped on 81.0% in FY2015.
Valuation
Coromandel Engineering Company's trades at EV/EBITDA 8.6x and P/E 107.4x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 8.9x with the industry average at 4.7x.
Appendix 1: Peers in Construction & Engineering
Below we provide Coromandel Engineering Company benchmarking against other companies in Construction & Engineering 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 |
|---|
| Madhucon Projects ($MADHUCON) | -72.3% | -19.5% | 61.7% | 81.2% | |
| C & C Constructions ($CANDC) | 7.1% | -11.6% | -12.2% | 31.7% | |
| Mbl Infrastructures ($MBLINFRA) | -58.2% | 26.3% | 7.1% | 30.3% | |
| Atlanta ($ATLANTA) | -61.5% | -47.6% | 115.1% | 28.1% | |
| Arss Infrastructure Projects ($ARSSINFRA) | 59.0% | -5.3% | -34.8% | 17.8% | |
| |
|---|
| Median (31 companies) | -11.7% | 8.7% | 6.6% | 7.1% | |
|---|
| Coromandel Engineering Company ($COROENGG) | | 50.6% | 27.3% | -7.9% | 7.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaiprakash Associates ($JPASSOCIAT) | 44.0% | 36.9% | 35.9% | 32.4% | |
| Atlanta ($ATLANTA) | 44.1% | 28.5% | 34.6% | 30.8% | |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 28.0% | 27.2% | 30.0% | 30.0% | |
| Madhucon Projects ($MADHUCON) | 11.6% | 8.4% | 31.9% | 22.1% | |
| Arss Infrastructure Projects ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | |
| |
|---|
| Median (29 companies) | 12.4% | 12.4% | 11.3% | 10.7% | 30.8% |
|---|
| Coromandel Engineering Company ($COROENGG) | 9.0% | -11.9% | 2.7% | 0.9% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Madhucon Projects ($MADHUCON) | 149.8% | 234.5% | 155.1% | 76.0% | |
| Jaiprakash Associates ($JPASSOCIAT) | 114.7% | 97.0% | 65.5% | 45.0% | |
| Supreme Infrastructure India ($SUPREMEINF) | 16.7% | 46.6% | 31.1% | 43.1% | |
| Man Infraconstruction ($MANINFRA) | 11.5% | 7.8% | 1.6% | 25.0% | |
| Jmc Projects (India) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | |
| |
|---|
| Median (23 companies) | 6.1% | 7.7% | 8.6% | 6.6% | 4.2% |
|---|
| Coromandel Engineering Company ($COROENGG) | 4.9% | 4.6% | 3.9% | 3.9% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipper ($SKIPPER) | 10.6% | 10.4% | 13.5% | 14.7% | |
| Mbl Infrastructures ($MBLINFRA) | 24.3% | 21.3% | 13.4% | 14.0% | |
| Voltas ($VOLTAS) | 32.9% | 19.6% | 11.7% | 11.8% | |
| Supreme Infrastructure India ($SUPREMEINF) | 15.0% | 15.4% | 12.4% | 10.6% | |
| Reliance Industrial Infrastructure ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.7% | 8.6% | 7.5% | 6.3% | 5.7% |
|---|
| Coromandel Engineering Company ($COROENGG) | 10.4% | -21.9% | 3.4% | -0.3% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Welspun Projects ($WELPROJ) | 71.3x | 6.0x | 2.6x | 20.8x | |
| Punj Lloyd ($PUNJLLOYD) | 6.5x | 6.7x | 6.8x | 16.5x | |
| Madhucon Projects ($MADHUCON) | 40.1x | 96.8x | 19.0x | 16.4x | |
| Hindustan Construction Co ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | |
| Jaiprakash Associates ($JPASSOCIAT) | 7.6x | 9.2x | 8.9x | 11.0x | |
| |
|---|
| Median (32 companies) | 3.7x | 4.6x | 5.3x | 5.9x | -0.1x |
|---|
| Coromandel Engineering Company ($COROENGG) | 7.1x | | 14.4x | 54.6x | 3.2x |
