Dcm Shriram reports 20.8% EBITDA decline and 9.0% Revenue decline
02-05-2015 • About Dcm Shriram (
$DCMSHRIRAM) • By InTwits
Dcm Shriram reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dcm Shriram is a company in decline: FY2015 revenue growth was -9.0%, 5 years revenue CAGR was -2.9%
- Dcm Shriram has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 5.7%.
- CAPEX is quite volatile: 591 in FY2015, 774 in FY2014, 9,915 in FY2013, 1,021 in FY2012, 1,841 in FY2011
- The company has business model with average profitability: ROIC is at 10.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dcm Shriram ($DCMSHRIRAM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 41,315 | 50,062 | 55,169 | 61,590 | 56,063 | -9.0% |
| EBITDA | 2,158 | 3,464 | 5,490 | 5,171 | 4,095 | -20.8% |
| Net Income | -143 | 119 | 2,029 | 2,424 | 2,108 | -13.0% |
Balance Sheet
|
|---|
| Cash | 638 | 1,862 | 1,356 | 2,959 | 954 | -67.8% |
| Short Term Debt | 9,277 | 10,268 | 8,933 | 5,888 | 4,584 | -22.1% |
| Long Term Debt | 7,636 | 7,913 | 6,635 | 5,883 | 3,012 | -48.8% |
Cash flow
|
|---|
| Capex | 928 | 669 | 775 | 951 | 1,044 | 9.7% |
Ratios
|
|---|
| Revenue growth | -36.4% | 21.2% | 10.2% | 11.6% | -9.0% | |
| EBITDA growth | -38.2% | 60.5% | 58.5% | -5.8% | -20.8% | |
| EBITDA Margin | 5.2% | 6.9% | 10.0% | 8.4% | 7.3% | -1.1% |
| Net Income Margin | -0.3% | 0.2% | 3.7% | 3.9% | 3.8% | -0.2% |
| CAPEX, % of revenue | 2.2% | 1.3% | 1.4% | 1.5% | 1.9% | 0.3% |
| ROIC | 1.8% | 5.9% | 12.3% | 12.1% | 10.3% | -1.8% |
| ROE | -1.1% | 0.9% | 14.4% | 15.2% | 11.9% | -3.3% |
| Net Debt/EBITDA | 7.5x | 4.7x | 2.6x | 1.7x | 1.6x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 9.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 8.4% to 7.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in FY2015. Dcm Shriram showed small growth in CAPEX/Revenue of 0.53 pp from 1.3% in FY2012 to 1.9% in FY2015. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low ROIC (10.34%) and ROE (11.89%). ROIC decreased slightly on 1.8 pp from 12.1% to 10.3% in FY2015. ROE decreased on 3.3 pp from 15.2% to 11.9% in FY2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 1.7x to 1.6x in FY2015. Debt dropped on 35.5% in FY2015 while cash dropped on 67.8% in FY2015.
Management team
Dcm Shriram's CEO Ajay S Shriram has spent 4 years at the company.
Appendix 1: Peers in Diversified
Below you can find Dcm Shriram benchmarking vs. other companies in Diversified 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 3M India ($3MINDIA) | -48.0% | 17.9% | 12.0% | 8.5% | |
| Aditya Birla Nuvo ($ABIRLANUVO) | -59.7% | 21.3% | 16.7% | 1.6% | |
| Mercator ($MERCATOR) | -22.6% | 30.8% | 0.9% | -7.4% | |
| |
|---|
| Median (3 companies) | -48.0% | 21.3% | 12.0% | 1.6% | |
|---|
| Dcm Shriram ($DCMSHRIRAM) | | 21.2% | 10.2% | 11.6% | -9.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mercator ($MERCATOR) | 22.8% | 15.8% | 13.6% | 18.6% | |
| Aditya Birla Nuvo ($ABIRLANUVO) | 17.0% | 13.5% | 14.9% | 17.7% | |
| 3M India ($3MINDIA) | 13.1% | 8.7% | 7.3% | 7.2% | |
| |
|---|
| Median (3 companies) | 17.0% | 13.5% | 13.6% | 17.7% | |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 5.2% | 6.9% | 10.0% | 8.4% | 7.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aditya Birla Nuvo ($ABIRLANUVO) | 16.0% | 7.6% | 6.5% | 17.1% | |
| Mercator ($MERCATOR) | 48.5% | 7.4% | 2.0% | 11.4% | |
| 3M India ($3MINDIA) | 0.0% | 0.0% | 0.0% | 0.0% | |
| |
|---|
| Median (3 companies) | 16.0% | 7.4% | 2.0% | 11.4% | |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 2.2% | 1.3% | 1.4% | 1.5% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aditya Birla Nuvo ($ABIRLANUVO) | 14.1% | 10.3% | 10.8% | 10.3% | |
| 3M India ($3MINDIA) | | 15.5% | 10.4% | 8.9% | |
| Mercator ($MERCATOR) | 5.5% | 3.4% | 1.0% | 3.5% | |
| Advanced Micronic Devices ($ADVNCMIC) | 9.2% | 9.1% | -2.8% | | |
| Raja Bahadur International ($RAJABAH) | | | | | |
| |
|---|
| Median (6 companies) | 9.2% | 10.3% | 5.7% | 8.9% | |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 1.8% | 5.9% | 12.3% | 12.1% | 10.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mercator ($MERCATOR) | 4.9x | 4.9x | 5.4x | 4.7x | |
| Aditya Birla Nuvo ($ABIRLANUVO) | 2.8x | 3.3x | 4.0x | 3.9x | |
| 3M India ($3MINDIA) | -0.2x | 0.2x | 1.0x | 0.5x | |
| Swasti Vinayaka Art And Heritage Corporation ($SVARTCORP) | 2.7x | 2.8x | 0.0x | 0.0x | |
| |
|---|
| Median (4 companies) | 2.7x | 3.3x | 4.0x | 2.2x | |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 7.5x | 4.7x | 2.6x | 1.7x | 1.6x |
