Tvs Motor Company EBITDA surged on 23.1% in 2015 and EBITDA Margin showed almost no change
29-04-2015 • About Tvs Motor Company (
$TVSMOTOR) • By InTwits
Tvs Motor Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.9% in FY2015 vs. 5.9% in FY2014 vs. 5.3% in FY2011
- Tvs Motor Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.4%.
- CAPEX is quite volatile: 3,757 in FY2015, 2,844 in FY2014, 1,624 in FY2013, 4,671 in FY2012, 2,904 in FY2011
- The company has highly profitable business model: ROIC is at 18.4%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is -8.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tvs Motor Company ($TVSMOTOR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65,430 | 74,352 | 75,105 | 83,836 | 102,558 | 22.3% |
| SG&A | | | | | 2,693 | |
| EBITDA | 3,458 | 4,888 | 5,316 | 4,920 | 6,058 | 23.1% |
| Net Income | 1,279 | 1,323 | 1,975 | 1,863 | 3,283 | 76.2% |
Balance Sheet
|
|---|
| Cash | 94 | 771 | 770 | 964 | 253 | -73.8% |
| Short Term Debt | 2,684 | 2,224 | 2,224 | 2,099 | 5,588 | 166.2% |
| Long Term Debt | 7,723 | 8,457 | 8,457 | 5,178 | 5,603 | 8.2% |
Cash flow
|
|---|
| Capex | 2,904 | 4,671 | 1,624 | 2,844 | 3,757 | 32.1% |
Ratios
|
|---|
| Revenue growth | -48.6% | 13.6% | 1.0% | 11.6% | 22.3% | |
| EBITDA growth | 166.9% | 41.3% | 8.8% | -7.4% | 23.1% | |
| EBITDA Margin | 5.3% | 6.6% | 7.1% | 5.9% | 5.9% | 0.0% |
| Net Income Margin | 2.0% | 1.8% | 2.6% | 2.2% | 3.2% | 1.0% |
| SG&A, % of revenue | | | | | 2.6% | 2.6% |
| CAPEX, % of revenue | 4.4% | 6.3% | 2.2% | 3.4% | 3.7% | 0.3% |
| ROIC | 13.2% | 17.2% | 17.4% | 16.8% | 18.4% | 1.6% |
| ROE | 19.6% | 16.7% | 22.0% | 18.1% | 26.4% | 8.3% |
| Net Debt/EBITDA | 3.0x | 2.0x | 1.9x | 1.3x | 1.8x | 0.5x |
Revenue and profitability
The company's Revenue jumped on 22.3% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased slightly on 0.98 pp from 2.2% to 3.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tvs Motor Company's CAPEX/Revenue was 3.7% in FY2015. The company showed decline in CAPEX/Revenue of 2.6 pp from 6.3% in FY2012 to 3.7% in FY2015. For the last three years the average CAPEX/Revenue was 3.1%.To maintain this fast growth the company invested a large share of EBITDA (62.0%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (26.41%) while ROIC is a bit lower (18.43%). ROIC increased slightly on 1.6 pp from 16.8% to 18.4% in FY2015. ROE increased on 8.3 pp from 18.1% to 26.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 1.8x. Net Debt / EBITDA jumped on 0.5x from 1.3x to 1.8x in FY2015. Debt jumped on 53.8% in FY2015 while cash dropped on 73.8% in FY2015.
Appendix 1: Peers in 2/3 Wheelers
Below we provide Tvs Motor Company benchmarking against other companies in 2/3 Wheelers 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bajaj Auto ($BAJAJ-AUTO) | -48.6% | 18.9% | 3.1% | 1.0% | |
| Scooters India ($SCOOTER) | -8.0% | 30.0% | -8.8% | -7.8% | |
| |
|---|
| Median (2 companies) | -28.3% | 24.5% | -2.8% | -3.4% | |
|---|
| Tvs Motor Company ($TVSMOTOR) | | 13.6% | 1.0% | 11.6% | 22.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bajaj Auto ($BAJAJ-AUTO) | 19.8% | 19.6% | 18.7% | 21.1% | |
| Scooters India ($SCOOTER) | -4.2% | -1.6% | -3.4% | 1.0% | |
| |
|---|
| Median (2 companies) | 7.8% | 9.0% | 7.6% | 11.1% | |
|---|
| Tvs Motor Company ($TVSMOTOR) | 5.3% | 6.6% | 7.1% | 5.9% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bajaj Auto ($BAJAJ-AUTO) | 1.3% | 1.9% | 2.6% | 1.1% | |
| |
|---|
| Median (1 company) | 1.1% | 1.1% | 1.4% | 1.1% | |
|---|
| Tvs Motor Company ($TVSMOTOR) | 4.4% | 6.3% | 2.2% | 3.4% | 3.7% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bajaj Auto ($BAJAJ-AUTO) | 78.7% | 64.1% | 48.7% | 42.8% | |
| Scooters India ($SCOOTER) | -61.3% | | -654.7% | 0.9% | |
| Kinetic Engineering ($KINETICENG) | | -8.1% | -14.9% | | |
| |
|---|
| Median (3 companies) | 8.7% | 28.0% | -14.9% | 21.8% | |
|---|
| Tvs Motor Company ($TVSMOTOR) | 13.2% | 17.2% | 17.4% | 16.8% | 18.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bajaj Auto ($BAJAJ-AUTO) | -0.0x | -0.3x | -0.1x | -0.1x | |
| Scooters India ($SCOOTER) | | | | -26.5x | |
| |
|---|
| Median (2 companies) | 80.3x | -0.3x | -0.1x | -13.3x | |
|---|
| Tvs Motor Company ($TVSMOTOR) | 3.0x | 2.0x | 1.9x | 1.3x | 1.8x |
