Alstom India Net Income dropped on 23.3% in 2015 while EBITDA Margin increased slightly on 1.5 pp from 6.8% to 8.3%
29-04-2015 • About Alstom India (
$AIL) • By InTwits
Alstom India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alstom India is a company in decline: FY2015 revenue growth was -18.5%, 5 years revenue CAGR was -3.9%
- EBITDA Margin is quite volatile: 8.3% in FY2015, 6.8% in FY2014, 8.8% in FY2013, 9.5% in FY2012, 19.1% in FY2011
- Alstom India has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 27.5%.
- CAPEX is quite volatile: 7,518 in FY2015, 1,258 in FY2014, 1,935 in FY2013, 2,884 in FY2012, 2,857 in FY2011
- The company has business model with average profitability: ROIC is at 10.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alstom India ($AIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,717 | 24,198 | 27,858 | 26,053 | 21,243 | -18.5% |
| EBITDA | 2,999 | 2,298 | 2,446 | 1,779 | 1,766 | -0.7% |
| Net Income | 1,692 | 1,680 | 1,836 | 2,307 | 1,769 | -23.3% |
Balance Sheet
|
|---|
| Cash | 7,145 | 2,119 | 1,100 | 2,714 | 7,165 | 164.1% |
| Short Term Debt | 339 | 1 | 1 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 943 | 955 | 837 | 614 | 526 | -14.3% |
Ratios
|
|---|
| Revenue growth | -39.3% | 54.0% | 15.1% | -6.5% | -18.5% | |
| EBITDA growth | 17.4% | -23.4% | 6.4% | -27.3% | -0.7% | |
| EBITDA Margin | 19.1% | 9.5% | 8.8% | 6.8% | 8.3% | 1.5% |
| Net Income Margin | 10.8% | 6.9% | 6.6% | 8.9% | 8.3% | -0.5% |
| CAPEX, % of revenue | 6.0% | 3.9% | 3.0% | 2.4% | 2.5% | 0.1% |
| ROIC | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% | -2.5% |
| ROE | 31.2% | 26.2% | 24.5% | 26.6% | 18.5% | -8.1% |
| Net Debt/EBITDA | -2.3x | -0.9x | -0.4x | -1.5x | -4.1x | -2.5x |
Revenue and profitability
The company's Revenue dropped on 18.5% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 6.8% to 8.3% in FY2015.
Net Income marign decreased slightly on 0.53 pp from 8.9% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Alstom India's CAPEX/Revenue was 2.5% in FY2015. Alstom India's CAPEX/Revenue decreased slightly on 1.5 pp from 3.9% in FY2012 to 2.5% in FY2015. For the last three years the average CAPEX/Revenue was 2.6%.
Return on investment
The company operates at good ROE (18.53%) while ROIC is low (10.72%). ROIC decreased on 2.5 pp from 13.2% to 10.7% in FY2015. ROE decreased on 8.1 pp from 26.6% to 18.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 164% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below we provide Alstom India benchmarking against other companies in Heavy Electrical 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 |
|---|
| Ujaas Energy ($UJAAS) | -71.9% | 1.1% | 614.7% | 116.7% | |
| Transformers And Rectifiers (India) ($TRIL) | -20.6% | -4.4% | -1.3% | 42.8% | |
| Jyoti Structures ($JYOTISTRUC) | -35.2% | 15.3% | 8.9% | 20.7% | |
| Emco ($EMCO) | -4.5% | -19.1% | -13.0% | 20.2% | |
| Crompton Greaves ($CROMPGREAV) | 9.5% | 12.4% | 7.5% | 12.7% | |
| |
|---|
| Median (15 companies) | -13.3% | 13.6% | -9.8% | 1.7% | |
|---|
| Alstom India ($AIL) | | 54.0% | 15.1% | -6.5% | -18.5% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 30.3% | 33.2% | 27.2% | 28.6% | |
| |
|---|
| Median (1 company) | 30.3% | 33.2% | 27.2% | 28.6% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techno Electric And Engineering Co. ($TECHNO) | 23.3% | 27.0% | 34.5% | 28.5% | |
| Techno Electric & Engineering Company ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | |
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | |
| Bgr Energy Systems ($BGRENERGY) | 12.4% | 14.1% | 14.6% | 12.2% | |
| Bharat Heavy Electricals ($BHEL) | 20.6% | 21.0% | 19.7% | 11.8% | |
| |
|---|
| Median (15 companies) | 12.4% | 8.9% | 8.8% | 6.6% | |
|---|
| Alstom India ($AIL) | 19.1% | 9.5% | 8.8% | 6.8% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | |
| Ujaas Energy ($UJAAS) | 6.8% | 87.8% | 1.4% | 20.2% | |
| T D Power Systems ($TDPOWERSYS) | 1.5% | 3.7% | 14.5% | 15.1% | |
| Bharat Heavy Electricals ($BHEL) | 5.2% | 3.3% | 3.6% | 4.1% | |
| |
|---|
| Median (14 companies) | 5.2% | 5.7% | 3.6% | 2.5% | |
|---|
| Alstom India ($AIL) | 6.0% | 3.9% | 3.0% | 2.4% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | |
| Bharat Heavy Electricals ($BHEL) | 46.1% | 41.5% | 29.5% | 10.3% | |
| Crompton Greaves ($CROMPGREAV) | 32.5% | 12.9% | 3.5% | 10.1% | |
| Bgr Energy Systems ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | |
| Jyoti Structures ($JYOTISTRUC) | 26.3% | 25.2% | 16.3% | 9.5% | |
| |
|---|
| Median (17 companies) | 17.4% | 14.1% | 6.3% | 8.3% | |
|---|
| Alstom India ($AIL) | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 9.7x | 6.1x | | 87.6x | |
| Sterlite Technologies ($STRTECH) | 2.8x | 4.6x | 10.2x | 15.4x | |
| Jyoti Structures ($JYOTISTRUC) | 1.3x | 2.4x | 3.6x | 5.7x | |
| Emco ($EMCO) | | 8.1x | 7.3x | 5.7x | |
| Swelect Energy Systems ($SWELECTES) | 0.5x | 0.5x | 1.3x | 5.0x | |
| |
|---|
| Median (15 companies) | 1.3x | 2.5x | 3.0x | 2.5x | |
|---|
| Alstom India ($AIL) | -2.3x | -0.9x | -0.4x | -1.5x | -4.1x |
