Exide Industries revenue jumped on 14.8% in 2015 while EBITDA Margin decreased slightly on 1.4 pp from 13.8% to 12.4%

30-04-2015 • About Exide Industries ($EXIDEIND) • By InTwits

Exide Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

• Exide Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 5.0%.
• CAPEX is quite volatile: 1,660 in FY2015, 1,084 in FY2014, 864 in FY2013, 464 in FY2012, 675 in FY2011
• The company has highly profitable business model: ROIC is at 26.9%

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Exide Industries ($EXIDEIND) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	47,661	53,157	63,611	83,089	95,350	14.8%
EBITDA	9,553	7,623	8,583	11,495	11,832	2.9%
Net Income	6,188	4,461	5,494	5,447	6,146	12.8%
Balance Sheet
Cash	201	472	2,161	2,817	2,013	-28.6%
Short Term Debt	929	296	488	109	550	405.4%
Long Term Debt	80	26	24	43	26	-39.1%
Cash flow
Capex	2,949	2,105	1,722	1,579	3,315	110.0%
Ratios
Revenue growth	-59.6%	11.5%	19.7%	30.6%	14.8%
EBITDA growth	-2.9%	-20.2%	12.6%	33.9%	2.9%
EBITDA Margin	20.0%	14.3%	13.5%	13.8%	12.4%	-1.4%
Net Income Margin	13.0%	8.4%	8.6%	6.6%	6.4%	-0.1%
CAPEX, % of revenue	6.2%	4.0%	2.7%	1.9%	3.5%	1.6%
ROIC	34.2%	24.2%	24.3%	29.5%	26.9%	-2.6%
ROE	28.8%	17.6%	19.1%	16.7%	16.8%	0.2%
Net Debt/EBITDA	0.1x	-0.0x	-0.2x	-0.2x	-0.1x	0.1x

Revenue and profitability

The company's Revenue jumped on 14.8% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 13.8% to 12.4% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 3.5% in FY2015. Exide Industries's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 2.7%.

Return on investment

The company operates at high and attractive ROIC (26.85%) while ROE is a bit lower (16.84%). ROIC decreased on 2.6 pp from 29.5% to 26.9% in FY2015. ROE showed almost no change in FY2015.

Leverage (Debt)

Debt level is -0.1x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.1x from -0.2x to -0.1x in FY2015. Debt jumped on 280% in FY2015 while cash dropped on 28.6% in FY2015.

Appendix 1: Peers in Auto Parts & Equipment

Below we provide Exide Industries 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
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%
L.G.Balakrishnan & Bros ($LGBBROSLTD)		27.7%	4.8%	15.9%	5.8%
Median (35 companies)	-35.9%	17.2%	2.4%	4.9%	0.8%
Exide Industries ($EXIDEIND)		11.5%	19.7%	30.6%	14.8%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Tube Investments Of India ($TUBEINVEST)	33.7%	18.4%	24.4%	28.3%
Shanthi Gears ($SHANTIGEAR)	44.6%	37.9%	30.2%	27.8%	12.0%
Amtek Auto ($AMTEKAUTO)		25.1%		20.7%	14.8%
Shivam Autotech ($SHIVAMAUTO)	23.2%	24.1%	24.1%	20.6%
Suprajit Engineering ($SUPRAJIT)	16.5%	16.2%	17.0%	17.2%
Median (34 companies)	10.8%	10.8%	9.8%	10.1%	12.0%
Exide Industries ($EXIDEIND)	20.0%	14.3%	13.5%	13.8%	12.4%

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 ($SONASTEER)	5.9%	9.8%	6.6%	7.1%
Median (24 companies)	8.0%	5.8%	4.7%	5.2%	6.7%
Exide Industries ($EXIDEIND)	6.2%	4.0%	2.7%	1.9%	3.5%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Amara Raja Batteries ($AMARAJABAT)	30.5%	32.1%	34.5%	30.3%
Suprajit Engineering ($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%
Munjal Auto Industries ($MUNJALAU)	26.3%	30.6%	21.5%	21.1%
Median (48 companies)	15.2%	15.7%	11.8%	12.7%	5.4%
Exide Industries ($EXIDEIND)	34.2%	24.2%	24.3%	29.5%	26.9%

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 ($ASAL)	1.8x	1.1x	3.9x	6.3x
Median (44 companies)	2.2x	1.3x	2.2x	0.8x	3.4x
Exide Industries ($EXIDEIND)	0.1x	-0.0x	-0.2x	-0.2x	-0.1x

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