Tvs Motor Company demonstrates fast growth in fundamentals
06-05-2015 • About Tvs Motor Company (
$TVSMOTOR) • By InTwits
Tvs Motor Company is an attractive growth stock in 2/3 Wheelers industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Tvs Motor Company showed fast growth in the last financial year. Tvs Motor Company's revenue surged on 22.3% in FY2015. Together with revenue growth Tvs Motor Company also managed to keep EBITDA growth. EBITDA grew 23.1% for the same period.
In the last 3 years Tvs Motor Company showed fast revenue growth of 11.3% from FY2012 to FY2015 annually. EBITDA surged on 7.42% from FY2012 to FY2015 annually.
Tvs Motor Company ($TVSMOTOR) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 65,430 | 74,352 | 75,105 | 83,836 | 102,558 |
|---|
| Revenue growth, % | | 13.6% | 1.0% | 11.6% | 22.3% |
|---|
| SG&A, % | | | | | 2.63% |
|---|
| EBITDA | 3,458 | 4,888 | 5,316 | 4,920 | 6,058 |
|---|
| EBITDA growth, % | | 41.3% | 8.8% | -7.4% | 23.1% |
|---|
| EBITDA margin, % | 5.29% | 6.57% | 7.08% | 5.87% | 5.91% |
|---|
| Net Income | 1,279 | 1,323 | 1,975 | 1,863 | 3,283 |
|---|
| Net Income margin, % | 1.96% | 1.78% | 2.63% | 2.22% | 3.20% |
|---|
| |
| CAPEX | 2,904 | 4,671 | 1,624 | 2,844 | 3,757 |
|---|
| CAPEX/Revenue, % | 4.44% | 6.28% | 2.16% | 3.39% | 3.66% |
|---|
| Debt | 10,407 | 10,681 | 10,681 | 7,277 | 11,191 |
|---|
| Cash | 94 | 771 | 770 | 964 | 253 |
|---|
| Net Debt/EBITDA | 3.0x | 2.0x | 1.9x | 1.3x | 1.8x |
|---|
| |
| ROIC, % | 13.2% | 17.2% | 17.4% | 16.8% | 18.4% |
|---|
| ROE, % | 19.6% | 16.7% | 22.0% | 18.1% | 26.4% |
|---|
Profitability and return on investment
EBITDA margin stayed constant at 5.90% in FY2015. In the longer period EBITDA margin dropped on 0.700 pp from 6.60% in FY2012 to 5.90% in FY2015.
Tvs Motor Company shows attractive ROIC at 18.4% for the last 12 months which assumes stable development model. During the last three years it increased - it was 17.2% in FY2012. Average ROIC for the last three years was 17.5%.
Net Income margin surged on 1 pp from 2.20% to 3.20% in FY2015. In the longer period Tvs Motor Company showed fast Net Income margin growth of 1.40 pp from 1.80% in FY2012 to 3.20% in FY2015.
Tvs Motor Company operates at ROE of 26.4%. It's average ROE for the last three years was 22.2%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 3.66% in FY2015. The company showed big decline in CAPEX/Revenue of 2.62 pp from 6.28% in FY2012 to 3.66% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.07%.
Leverage (Debt)
Having such a fast growth profile Tvs Motor Company keeps medium debt level at 1.8x Net Debt/EBITDA. If we look for the longer period leverage dropped on 0.22x from 2.03x in FY2012 to 1.81x in FY2015.
Peers in 2/3 Wheelers
Below you can find Tvs Motor Company benchmarking vs. other companies in 2/3 Wheelers 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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 ($TVSMOTOR) | | 13.6% | 1.0% | 11.6% | 22.3% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Bajaj Auto ($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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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 |
