Indosolar reports 1,797% revenue growth in FY2015 and 156 pp EBITDA Margin growth from -140% to 16.3%
04-05-2015 • About Indosolar (
$INDOSOLAR) • By InTwits
Indosolar reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indosolar spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -6.4%0
- Indosolar has high CAPEX intensity: 5 year average CAPEX/Revenue was 110.6%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 785 in FY2015, 65.1 in FY2014, 787 in FY2013, 2,531 in FY2012, 1,315 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with high leverage: Net Debt/EBITDA is 20.3x while industry average is 4.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Indosolar ($INDOSOLAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,434 | 813 | 531 | 154 | 2,919 | 1,797.0% |
| EBITDA | 314 | -930 | -280 | -215 | 477 | |
| Net Income | -574 | -2,024 | -1,239 | -1,370 | -782 | |
Balance Sheet
|
|---|
| Cash | 0 | 44 | 3 | 20 | 103 | 412.9% |
| Short Term Debt | 2,486 | 296 | 670 | 2,742 | 3,798 | 38.5% |
| Long Term Debt | 1,838 | 7,331 | 8,448 | 7,293 | 5,978 | -18.0% |
Cash flow
|
|---|
| Capex | 1,315 | 2,531 | 787 | 65 | 785 | 1,105.3% |
Ratios
|
|---|
| Revenue growth | 56.8% | -85.0% | -34.7% | -71.0% | 1,797.0% | |
| EBITDA growth | -180.0% | -396.6% | -69.9% | -23.1% | -321.5% | |
| EBITDA Margin | 5.8% | -114.4% | -52.7% | -140.0% | 16.3% | 156.3% |
| Net Income Margin | -10.6% | -248.8% | -233.2% | -890.0% | -26.8% | 863.2% |
| CAPEX, % of revenue | 24.2% | 311.2% | 148.3% | 42.3% | 26.9% | -15.4% |
| ROIC | -2.7% | -14.0% | -6.8% | -5.2% | 2.2% | 7.5% |
| ROE | -20.5% | -65.0% | -83.7% | | | 0.0% |
| Net Debt/EBITDA | 13.8x | | | | 20.3x | 20.3x |
Revenue and profitability
Indosolar's Revenue surged on 1,797% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 2.2% to 3.0% in FY2015.
Net Income marign surged on 863 pp from -890% to -26.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 26.9% in FY2015. The company showed big decline in CAPEX/Revenue of 284 pp from 311% in FY2012 to 26.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 72.5%.Indosolar has spent a lot to CAPEX (164% of EBITDA) to secure its growth.
Leverage (Debt)
Company's Net Debt / EBITDA is 20.3x and Debt / EBITDA is 20.5x. Net Debt / EBITDA surged20.3x from to 20.3x in FY2015. Debt decreased on 2.6% in FY2015 while cash surged on 413% in FY2015.
Appendix 1: Peers in Other Elect.Equip./ Prod.
Below we provide Indosolar benchmarking against other companies in Other Elect.Equip./ Prod. 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 |
|---|
| Birla Ericsson Optical ($BIRLAERIC) | -78.0% | 13.1% | 64.8% | 134.7% | |
| Diamond Power Infrastructure ($DIAPOWER) | -52.4% | 32.7% | 27.9% | 23.1% | |
| Genus Power Infrastructures ($GENUSPOWER) | -34.5% | -1.2% | -7.5% | 17.4% | |
| Ultracab (India) ($ULTRACAB) | 49.2% | 43.1% | 26.2% | 10.5% | |
| Salzer Electronics ($SALZER) | -46.1% | 23.4% | 2.6% | 6.9% | |
| |
|---|
| Median (13 companies) | -16.7% | 23.4% | -2.2% | 0.4% | 35.9% |
|---|
| Indosolar ($INDOSOLAR) | | -85.0% | -34.7% | -71.0% | 1,797.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Malvica Engineering ($MALVICAE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Genus Power Infrastructures ($GENUSPOWER) | 14.4% | 14.1% | 11.0% | 13.8% | |
| Pitti Laminations ($PITTILAM) | 12.9% | 15.6% | 13.6% | 13.2% | 12.0% |
| Ultracab (India) ($ULTRACAB) | 9.8% | 10.0% | 7.9% | 13.0% | |
| Salzer Electronics ($SALZER) | 14.3% | 12.9% | 12.5% | 12.4% | |
| Birla Ericsson Optical ($BIRLAERIC) | -3.3% | 2.6% | 9.0% | 12.3% | |
| |
|---|
| Median (11 companies) | 9.1% | 10.0% | 9.5% | 9.8% | 12.0% |
|---|
| Indosolar ($INDOSOLAR) | 5.8% | -114.4% | -52.7% | -140.0% | 16.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Easun Reyrolle ($EASUNREYRL) | 19.3% | 26.5% | 30.7% | 19.4% | |
| Diamond Power Infrastructure ($DIAPOWER) | | | 6.8% | 8.4% | |
| Salzer Electronics ($SALZER) | 5.7% | 6.8% | 5.6% | 4.1% | |
| Birla Ericsson Optical ($BIRLAERIC) | 9.4% | 1.3% | 4.4% | 4.0% | |
| Ultracab (India) ($ULTRACAB) | 0.2% | 2.8% | 4.0% | 3.2% | |
| |
|---|
| Median (7 companies) | 5.6% | 3.1% | 4.2% | 4.0% | |
|---|
| Indosolar ($INDOSOLAR) | 24.2% | 311.2% | 148.3% | 42.3% | 26.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Birla Ericsson Optical ($BIRLAERIC) | -6.6% | -2.2% | 8.2% | 27.3% | |
| Ultracab (India) ($ULTRACAB) | 14.3% | 14.8% | 11.6% | 18.4% | |
| Salzer Electronics ($SALZER) | 14.6% | 14.6% | 12.7% | 13.0% | |
| Genus Power Infrastructures ($GENUSPOWER) | 15.2% | 12.4% | 8.0% | 12.2% | |
| Diamond Power Infrastructure ($DIAPOWER) | 19.6% | 16.1% | 11.7% | 11.3% | |
| |
|---|
| Median (22 companies) | 13.7% | 9.7% | 10.1% | 11.3% | 0.0% |
|---|
| Indosolar ($INDOSOLAR) | -2.7% | -14.0% | -6.8% | -5.2% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Easun Reyrolle ($EASUNREYRL) | 11.1x | 19.4x | 11.3x | 11.6x | |
| Hbl Power Systems ($HBLPOWER) | 8.6x | 4.1x | 4.4x | 6.8x | |
| Diamond Power Infrastructure ($DIAPOWER) | 2.5x | 3.3x | 5.2x | 4.8x | |
| Ultracab (India) ($ULTRACAB) | 4.8x | 4.9x | 5.2x | 3.8x | |
| Pitti Laminations ($PITTILAM) | 2.9x | 2.4x | 3.3x | 3.2x | 0.0x |
| |
|---|
| Median (12 companies) | 2.9x | 3.3x | 4.1x | 2.8x | 0.0x |
|---|
