Motherson Sumi Systems CAPEX jumped on 37.7% in 2015 and Revenue jumped on 14.0%
12-05-2015 • About Motherson Sumi Systems (
$MOTHERSUMI) • By InTwits
Motherson Sumi Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Motherson Sumi Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's a lot of higher than industry average of 5.0%.
- CAPEX is quite volatile: 19,443 in FY2015, 14,120 in FY2014, 11,389 in FY2013, 10,758 in FY2012, 7,874 in FY2011
- The company has highly profitable business model: ROIC is at 24.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Motherson Sumi Systems ($MOTHERSUMI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 82,491 | 147,766 | 253,124 | 304,279 | 346,731 | 14.0% |
| EBITDA | 9,028 | 10,896 | 19,607 | 28,955 | 32,070 | 10.8% |
| Net Income | 3,908 | 2,596 | 4,445 | 7,650 | 8,625 | 12.7% |
Balance Sheet
|
|---|
| Cash | 3,532 | 4,557 | 5,944 | 9,061 | 18,919 | 108.8% |
| Short Term Debt | 5,996 | 16,412 | 21,880 | 18,563 | 10,447 | -43.7% |
| Long Term Debt | 6,611 | 29,611 | 27,159 | 29,834 | 40,859 | 37.0% |
Cash flow
|
|---|
| Capex | 7,874 | 10,758 | 11,389 | 14,120 | 19,443 | 37.7% |
Ratios
|
|---|
| Revenue growth | -86.4% | 79.1% | 71.3% | 20.2% | 14.0% | |
| EBITDA growth | 51.7% | 20.7% | 79.9% | 47.7% | 10.8% | |
| EBITDA Margin | 10.9% | 7.4% | 7.7% | 9.5% | 9.2% | -0.3% |
| Net Income Margin | 4.7% | 1.8% | 1.8% | 2.5% | 2.5% | -0.0% |
| CAPEX, % of revenue | 9.5% | 7.3% | 4.5% | 4.6% | 5.6% | 1.0% |
| ROIC | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% | -0.1% |
| ROE | 28.2% | 14.9% | 21.4% | 29.2% | 27.5% | -1.7% |
| Net Debt/EBITDA | 1.0x | 3.8x | 2.2x | 1.4x | 1.0x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 14.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 9.0% to 10.6% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.6%. CAPEX/Revenue decreased slightly on 1.7 pp from 7.3% in FY2012 to 5.6% in FY2015. It's average CAPEX/Revenue for the last three years was 4.9%.To secure this fast growth Motherson Sumi Systems invested a large share of EBITDA (60.6%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (24.89%) and ROE (27.45%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.7 pp from 29.2% to 27.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.3x from 1.4x to 1.0x in FY2015. Debt increased on 6.0% in FY2015 while cash surged on 109% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Motherson Sumi Systems 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 |
|---|
| Exide Industries ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| Fiem Industries ($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 ($LGBBROSLTD) | | 27.7% | 4.8% | 15.9% | 5.8% |
| |
|---|
| Median (35 companies) | -35.3% | 16.9% | 2.4% | 4.9% | 5.8% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | | 79.1% | 71.3% | 20.2% | 14.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 33.7% | 18.4% | 24.4% | 28.3% | 30.0% |
| Shanthi Gears ($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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.8% | 11.1% | 9.9% | 10.8% | 12.2% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 10.9% | 7.4% | 7.7% | 9.5% | 9.2% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | |
| |
|---|
| Median (24 companies) | 7.6% | 5.6% | 4.7% | 5.2% | 4.8% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 9.5% | 7.3% | 4.5% | 4.6% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 30.5% | 32.1% | 34.5% | 30.3% | |
| Exide Industries ($EXIDEIND) | 34.2% | 24.2% | 24.3% | 29.5% | 26.9% |
| Suprajit Engineering ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| Munjal Auto Industries ($MUNJALAU) | 26.3% | 30.6% | 21.5% | 21.1% | |
| |
|---|
| Median (48 companies) | 15.2% | 16.4% | 11.8% | 12.7% | 5.5% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x |
| Autoline Industries ($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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.2x | 1.8x | 0.7x | 1.1x |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 1.0x | 3.8x | 2.2x | 1.4x | 1.0x |
