Shanthi Gears EBITDA dropped on 56.4% in 2015 and EBITDA Margin dropped on 15.7 pp from 27.8% to 12.0%
29-04-2015 • About Shanthi Gears (
$SHANTIGEAR) • By InTwits
Shanthi Gears reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shanthi Gears doesn't have a profitable business model yet: FY2015 ROIC is 0.6%
- EBITDA Margin is declining: 12.0% in FY2015 vs. 27.8% in FY2014 vs. 44.6% in FY2011
- EBITDA Margin is quite volatile: 12.0% in FY2015, 27.8% in FY2014, 30.2% in FY2013, 37.9% in FY2012, 44.6% in FY2011
- Shanthi Gears has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 36.2 in FY2015, 47.8 in FY2014, 67.9 in FY2013, 80.9 in FY2012, 122 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shanthi Gears ($SHANTIGEAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,623 | 1,723 | 1,437 | 1,508 | 1,520 | 0.8% |
| EBITDA | 723 | 654 | 434 | 418 | 183 | -56.4% |
| Net Income | 279 | 281 | 155 | 184 | 93 | -49.3% |
Balance Sheet
|
|---|
| Cash | 12 | 1 | 16 | 26 | 0 | -98.4% |
| Short Term Debt | 59 | 40 | 0 | 0 | 0 | |
| Long Term Debt | 39 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 122 | 81 | 68 | 48 | 36 | -24.3% |
Ratios
|
|---|
| Revenue growth | -7.0% | 6.1% | -16.6% | 4.9% | 0.8% | |
| EBITDA growth | 49.0% | -9.6% | -33.6% | -3.7% | -56.4% | |
| EBITDA Margin | 44.6% | 37.9% | 30.2% | 27.8% | 12.0% | -15.7% |
| Net Income Margin | 17.2% | 16.3% | 10.8% | 12.2% | 6.1% | -6.1% |
| CAPEX, % of revenue | 7.5% | 4.7% | 4.7% | 3.2% | 2.4% | -0.8% |
| ROIC | 17.9% | 14.8% | 5.6% | 6.1% | 0.6% | -5.5% |
| ROE | 12.7% | 11.8% | 6.1% | 7.0% | 3.5% | -3.5% |
| Net Debt/EBITDA | 0.1x | 0.1x | -0.0x | -0.1x | -0.0x | 0.1x |
Revenue and profitability
The company's Revenue increased slightly on 0.82% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 26.7% to 21.1% in FY2015.
Net Income marign decreased on 6.1 pp from 12.2% to 6.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.4%. The company's CAPEX/Revenue decreased on 2.3 pp from 4.7% in FY2012 to 2.4% in FY2015. It's average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at low ROIC (0.55%) and ROE (3.47%). ROIC decreased on 5.5 pp from 6.1% to 0.55% in FY2015. ROE decreased on 3.5 pp from 7.0% to 3.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 98.4% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Shanthi Gears benchmarking against other companies in Auto Parts & 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 |
|---|
| Exide Industries ($EXIDEIND) | -59.6% | 11.5% | 19.7% | 30.6% | |
| Motherson Sumi Systems ($MOTHERSUMI) | -86.4% | 79.1% | 71.3% | 20.2% | |
| Fiem Industries ($FIEMIND) | -54.4% | 25.2% | 13.4% | 18.7% | |
| Suprajit Engineering ($SUPRAJIT) | -53.1% | 22.2% | 9.4% | 17.9% | |
| Amara Raja Batteries ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -36.2% | 17.2% | 2.7% | 5.0% | -3.2% |
|---|
| Shanthi Gears ($SHANTIGEAR) | | 6.1% | -16.6% | 4.9% | 0.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 33.7% | 18.4% | 24.4% | 28.3% | |
| Amtek Auto ($AMTEKAUTO) | | 25.1% | | 20.7% | 14.8% |
| Shivam Autotech ($SHIVAMAUTO) | 23.2% | 24.1% | 24.1% | 20.6% | |
| Suprajit Engineering ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| Banco Products (India) ($BANCOINDIA) | 12.9% | 12.2% | 11.6% | 14.4% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.1% | 9.3% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 44.6% | 37.9% | 30.2% | 27.8% | 12.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amtek Auto ($AMTEKAUTO) | | 18.9% | | 27.1% | 30.3% |
| Amara Raja Batteries ($AMARAJABAT) | 2.9% | 3.7% | 2.5% | 10.9% | |
| Subros ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | |
| Lumax Auto Technologies ($LUMAXTECH) | 3.7% | 5.1% | 7.3% | 7.8% | |
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.5% | 5.2% | 17.4% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 7.5% | 4.7% | 4.7% | 3.2% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 30.5% | 32.1% | 34.5% | 30.3% | |
| Exide Industries ($EXIDEIND) | 34.2% | 24.2% | 24.3% | 29.5% | |
| Suprajit Engineering ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | |
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 15.2% | 16.4% | 12.7% | 14.5% | 5.4% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 17.9% | 14.8% | 5.6% | 6.1% | 0.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | |
| Autoline Industries ($AUTOIND) | 3.1x | 3.2x | 4.0x | 12.0x | |
| Reil Electricals India ($REILELEC) | -0.1x | -0.0x | 1.5x | 9.1x | |
| Steel Strips Wheels ($SSWL) | 4.6x | 5.4x | 6.3x | 6.5x | 5.6x |
| Automotive Stampings & Assemblies ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.8x | 5.7x |
|---|
| Shanthi Gears ($SHANTIGEAR) | 0.1x | 0.1x | -0.0x | -0.1x | -0.0x |
