Man Industries (India) reports 107% EBITDA growth and 3.2 pp EBITDA Margin growth from 5.5% to 8.7%
29-04-2015 • About Man Industries (India) (
$MANINDS) • By InTwits
Man Industries (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Man Industries (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: 0 in FY2015, 402 in FY2014, 865 in FY2013, 25.6 in FY2012, 131 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Man Industries (India) ($MANINDS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,043 | 17,509 | 15,136 | 10,053 | 13,071 | 30.0% |
| EBITDA | 1,920 | 1,762 | 1,926 | 551 | 1,141 | 107.1% |
| Net Income | 838 | 711 | 622 | 90 | 504 | 458.2% |
Balance Sheet
|
|---|
| Cash | 604 | 1,065 | 1,679 | 1,787 | 1,483 | -17.0% |
| Short Term Debt | 11,131 | 5,918 | 2,377 | 1,285 | 1,781 | 38.6% |
| Long Term Debt | 2,201 | 0 | 2,986 | 3,098 | 3,168 | 2.3% |
Cash flow
|
|---|
| Capex | 131 | 26 | 865 | 402 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | -2.2% | 16.4% | -13.5% | -33.6% | 30.0% | |
| EBITDA growth | 58.4% | -8.2% | 9.3% | -71.4% | 107.1% | |
| EBITDA Margin | 12.8% | 10.1% | 12.7% | 5.5% | 8.7% | 3.2% |
| Net Income Margin | 5.6% | 4.1% | 4.1% | 0.9% | 3.9% | 3.0% |
| CAPEX, % of revenue | 0.9% | 0.1% | 5.7% | 4.0% | 0.0% | -4.0% |
| ROIC | 10.4% | 8.6% | 12.3% | 1.9% | 6.6% | 4.7% |
| ROE | 18.4% | 12.8% | 9.8% | 1.4% | 8.8% | 7.4% |
| Net Debt/EBITDA | 6.6x | 2.8x | 1.9x | 4.7x | 3.0x | -1.7x |
Revenue and profitability
Man Industries (India)'s Revenue surged on 30.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign increased on 3.0 pp from 0.90% to 3.9% in FY2015.
Return on investment
The company operates at low ROIC (6.61%) and ROE (8.81%). ROIC increased on 4.7 pp from 1.9% to 6.6% in FY2015. ROE increased on 7.4 pp from 1.4% to 8.8% in FY2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 4.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 4.7x to 3.0x in FY2015. Debt jumped on 12.9% in FY2015 while cash dropped on 17.0% in FY2015.
Appendix 1: Peers in Construction & Engineering
Below you can find Man Industries (India) benchmarking vs. other companies in Construction & Engineering 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 |
|---|
| 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 ($ARSSINFRA) | 59.0% | -5.3% | -34.8% | 17.8% | |
| |
|---|
| Median (31 companies) | -13.6% | 8.7% | 6.9% | 7.1% | 7.6% |
|---|
| Man Industries (India) ($MANINDS) | | 16.4% | -13.5% | -33.6% | 30.0% |
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 ($ARSSINFRA) | 21.8% | 14.0% | 13.9% | 22.0% | |
| |
|---|
| Median (29 companies) | 12.0% | 12.4% | 11.2% | 10.7% | 20.6% |
|---|
| Man Industries (India) ($MANINDS) | 12.8% | 10.1% | 12.7% | 5.5% | 8.7% |
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) ($JMCPROJECT) | 7.8% | 4.5% | 1.7% | 18.9% | |
| |
|---|
| Median (23 companies) | 6.1% | 7.7% | 8.6% | 6.6% | 2.2% |
|---|
| Man Industries (India) ($MANINDS) | 0.9% | 0.1% | 5.7% | 4.0% | 0.0% |
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 ($RIIL) | 5.1% | 10.8% | 12.7% | 10.5% | 5.7% |
| |
|---|
| Median (42 companies) | 10.7% | 8.6% | 7.1% | 6.3% | 10.4% |
|---|
| Man Industries (India) ($MANINDS) | 10.4% | 8.6% | 12.3% | 1.9% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel Engineering Company ($COROENGG) | 7.1x | | 14.4x | 54.6x | 3.2x |
| Welspun Projects ($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 ($HCC) | 10.0x | 18.8x | 20.3x | 12.3x | |
| |
|---|
| Median (32 companies) | 3.7x | 4.7x | 5.7x | 6.6x | 1.5x |
|---|
| Man Industries (India) ($MANINDS) | 6.6x | 2.8x | 1.9x | 4.7x | 3.0x |
