Mirc Electronics EBITDA jumped on 634% in 2015 and EBITDA Margin increased on 3.7 pp from 0.46% to 4.1%
07-05-2015 • About Mirc Electronics (
$MIRCELECTR) • By InTwits
Mirc Electronics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mirc Electronics is a company in decline: FY2015 revenue growth was -17.7%, 5 years revenue CAGR was -2.6%
- EBITDA Margin is quite volatile: 4.1% in FY2015, 0.5% in FY2014, -0.0% in FY2013, 1.4% in FY2012, 4.0% in FY2011
- Mirc Electronics has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has business model with low profitability: ROIC is at 7.3%
- It operates with high leverage: Net Debt/EBITDA is 4.9x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mirc Electronics ($MIRCELECTR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 19,419 | 16,737 | 13,161 | 13,041 | 10,735 | -17.7% |
| EBITDA | 780 | 229 | -4 | 61 | 444 | 634.0% |
| Net Income | 290 | -387 | -312 | -621 | -46 | |
Balance Sheet
|
|---|
| Cash | 75 | 69 | 33 | 7 | 3 | -50.4% |
| Short Term Debt | 3,316 | 1,236 | 2,922 | 2,711 | 2,156 | -20.5% |
| Long Term Debt | 350 | 150 | 0 | 26 | 14 | -45.6% |
Cash flow
|
|---|
| Capex | 163 | 123 | 169 | 83 | 4 | -95.0% |
Ratios
|
|---|
| Revenue growth | 58.2% | -13.8% | -21.4% | -0.9% | -17.7% | |
| EBITDA growth | 30.1% | -70.7% | -101.5% | -1,826.9% | 634.0% | |
| EBITDA Margin | 4.0% | 1.4% | -0.0% | 0.5% | 4.1% | 3.7% |
| Net Income Margin | 1.5% | -2.3% | -2.4% | -4.8% | -0.4% | 4.3% |
| CAPEX, % of revenue | 0.8% | 0.7% | 1.3% | 0.6% | 0.0% | -0.6% |
| ROIC | 9.3% | -0.0% | -4.0% | -2.2% | 7.3% | 9.5% |
| ROE | 11.4% | -16.1% | -15.1% | -38.8% | -3.3% | 35.6% |
| Net Debt/EBITDA | 4.6x | 5.8x | | 45.1x | 4.9x | -40.2x |
Revenue and profitability
Mirc Electronics's Revenue dropped on 17.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 0.46% to 4.1% in FY2015.
Net Income marign increased on 4.3 pp from -4.8% to -0.43% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mirc Electronics's CAPEX/Revenue was 0.039% in FY2015. Mirc Electronics's CAPEX/Revenue decreased slightly on 0.69 pp from 0.73% in FY2012 to 0.039% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.65%.
Return on investment
The company operates at low but positive ROIC (7.34%) and negative ROE (-3.26%). ROIC increased on 9.5 pp from -2.2% to 7.3% in FY2015. ROE surged on 35.6 pp from -38.8% to -3.3% in FY2015.
Leverage (Debt)
Debt level is 4.9x Net Debt / EBITDA and 4.9x Debt / EBITDA. Net Debt / EBITDA dropped on 40.2x from 45.1x to 4.9x in FY2015. Debt dropped on 20.7% in FY2015 while cash dropped on 50.4% in FY2015.
Appendix 1: Peers in Consumer Electronics
Below we provide Mirc Electronics benchmarking against other companies in Consumer Electronics 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 |
|---|
| Sharp India ($SHARP) | -49.0% | -25.1% | -7.4% | 98.9% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | -60.0% | 4.5% | 16.5% | 18.3% | |
| Whirlpool Of India ($WHIRLPOOL) | -32.1% | -1.7% | 4.3% | 2.2% | |
| Blue Star ($BLUESTARCO) | -22.7% | -5.5% | 3.9% | 1.3% | |
| |
|---|
| Median (4 companies) | -40.6% | -3.6% | 4.1% | 10.2% | |
|---|
| Mirc Electronics ($MIRCELECTR) | | -13.8% | -21.4% | -0.9% | -17.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 10.3% | 8.9% | 8.4% | 7.9% | |
| Sharp India ($SHARP) | 4.0% | 7.2% | 4.8% | 6.3% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 7.7% | 4.3% | 5.4% | 5.6% | |
| Blue Star ($BLUESTARCO) | 8.7% | -0.8% | 3.1% | 5.4% | |
| |
|---|
| Median (4 companies) | 8.2% | 5.8% | 5.1% | 5.9% | |
|---|
| Mirc Electronics ($MIRCELECTR) | 4.0% | 1.4% | -0.0% | 0.5% | 4.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 5.1% | 2.1% | 12.0% | 3.8% | |
| Whirlpool Of India ($WHIRLPOOL) | 2.7% | 4.5% | 3.0% | 3.0% | |
| Blue Star ($BLUESTARCO) | 1.8% | 1.9% | 1.0% | 1.4% | |
| |
|---|
| Median (3 companies) | 3.4% | 3.3% | 3.0% | 3.0% | |
|---|
| Mirc Electronics ($MIRCELECTR) | 0.8% | 0.7% | 1.3% | 0.6% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 43.8% | 34.9% | 27.0% | 21.1% | |
| Blue Star ($BLUESTARCO) | | -6.1% | 6.9% | 12.6% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 16.5% | 6.5% | 9.6% | 8.4% | |
| Calcom Vision ($CALCOM) | | | -14.3% | | |
| Vxl Instruments ($VXLINSTR) | 10.2% | 13.7% | 4.5% | | |
| |
|---|
| Median (6 companies) | 13.4% | 7.9% | 5.7% | 12.6% | |
|---|
| Mirc Electronics ($MIRCELECTR) | 9.3% | -0.0% | -4.0% | -2.2% | 7.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Blue Star ($BLUESTARCO) | 1.6x | | 4.5x | 2.7x | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 1.5x | 2.0x | 1.4x | 2.0x | |
| Sharp India ($SHARP) | 0.8x | 1.2x | 0.4x | 0.0x | |
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.2x | -0.7x | -1.3x | |
| |
|---|
| Median (4 companies) | 1.5x | 1.2x | 2.6x | 1.0x | |
|---|
| Mirc Electronics ($MIRCELECTR) | 4.6x | 5.8x | | 45.1x | 4.9x |
