Subros reports 13.7% CAPEX decline while 2.2% Revenue growth
14-05-2015 • About Subros (
$SUBROS) • By InTwits
Subros reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Subros has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's a lot of higher than industry average of 5.0%.
- CAPEX is quite volatile: 567 in FY2015, 309 in FY2014, 1,207 in FY2013, 875 in FY2012, 822 in FY2011
- The company has business model with low profitability: ROIC is at 7.7%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Subros ($SUBROS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,925 | 11,205 | 12,766 | 11,762 | 12,020 | 2.2% |
| EBITDA | 760 | 965 | 1,222 | 1,330 | 1,369 | 2.9% |
| Net Income | 286 | 477 | 203 | 208 | 200 | -3.7% |
Balance Sheet
|
|---|
| Cash | 34 | 21 | 21 | 27 | 20 | -26.2% |
| Short Term Debt | 918 | 1,683 | 1,601 | 1,721 | 2,056 | 19.5% |
| Long Term Debt | 767 | 1,361 | 1,896 | 2,414 | 2,143 | -11.2% |
Cash flow
|
|---|
| Capex | 1,268 | 1,865 | 1,368 | 1,095 | 945 | -13.7% |
Ratios
|
|---|
| Revenue growth | -23.1% | 2.6% | 13.9% | -7.9% | 2.2% | |
| EBITDA growth | -18.4% | 27.0% | 26.6% | 8.9% | 2.9% | |
| EBITDA Margin | 7.0% | 8.6% | 9.6% | 11.3% | 11.4% | 0.1% |
| Net Income Margin | 2.6% | 4.3% | 1.6% | 1.8% | 1.7% | -0.1% |
| CAPEX, % of revenue | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% | -1.5% |
| ROIC | 9.0% | 8.5% | 7.8% | 7.9% | 7.7% | -0.2% |
| ROE | 13.1% | 19.1% | 7.3% | 7.1% | 6.5% | -0.6% |
| Net Debt/EBITDA | 2.2x | 3.1x | 2.8x | 3.1x | 3.1x | -0.0x |
Revenue and profitability
Subros's Revenue increased on 2.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.6 pp from 12.4% to 9.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Subros's CAPEX/Revenue was 7.9% in FY2015. Subros's CAPEX/Revenue decreased on 8.8 pp from 16.6% in FY2012 to 7.9% in FY2015. Average CAPEX/Revenue for the last three years was 9.3%.Subros maintained rich investment policy and has spent a big chunk of EBITDA (69.0%) to CAPEX.
Return on investment
The company operates at low ROIC (7.71%) and ROE (6.47%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.60 pp from 7.1% to 6.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.1x and Debt / EBITDA is 3.1x. Net Debt / EBITDA decreased on 0.036x from 3.1x to 3.1x in FY2015. Debt increased slightly on 1.5% in FY2015 while cash dropped on 26.2% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Subros 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 ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | | 79.1% | 71.3% | 20.2% | 14.0% |
| 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.6% | 17.2% | 2.4% | 5.0% | 7.0% |
|---|
| Subros ($SUBROS) | | 2.6% | 13.9% | -7.9% | 2.2% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.9% | 10.1% | 12.0% |
|---|
| Subros ($SUBROS) | 7.0% | 8.6% | 9.6% | 11.3% | 11.4% |
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% | |
| 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% | |
| Munjal Auto Industries ($MUNJALAU) | 8.4% | 2.5% | 2.0% | 6.7% | |
| |
|---|
| Median (24 companies) | 7.6% | 5.6% | 4.5% | 4.8% | 5.1% |
|---|
| Subros ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% |
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 ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | |
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 16.5% | 16.4% | 12.7% | 14.5% | 6.7% |
|---|
| Subros ($SUBROS) | 9.0% | 8.5% | 7.8% | 7.9% | 7.7% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.1x |
|---|
| Subros ($SUBROS) | 2.2x | 3.1x | 2.8x | 3.1x | 3.1x |
