Sona Koyo Steering Systems CAPEX dropped on 22.0% in 2015 while Revenue increased on 4.1%
15-05-2015 • About Sona Koyo Steering Systems (
$SONASTEER) • By InTwits
Sona Koyo Steering Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sona Koyo Steering Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 143 in FY2015, 142 in FY2014, 376 in FY2013, 581 in FY2012, 145 in FY2011
- The company has highly profitable business model: ROIC is at 14.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sona Koyo Steering Systems ($SONASTEER) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,027 | 14,213 | 14,600 | 14,923 | 15,530 | 4.1% |
| EBITDA | 1,559 | 1,877 | 1,655 | 1,818 | 2,162 | 19.0% |
| Net Income | 446 | 487 | 381 | 678 | 379 | -44.1% |
Balance Sheet
|
|---|
| Cash | 112 | 112 | 17 | 16 | 74 | 362.6% |
| Short Term Debt | 893 | 951 | 1,696 | 1,719 | 1,246 | -27.5% |
| Long Term Debt | 2,547 | 2,624 | 2,403 | 1,696 | 1,675 | -1.2% |
Cash flow
|
|---|
| Capex | 714 | 1,387 | 965 | 1,057 | 824 | -22.0% |
Ratios
|
|---|
| Revenue growth | -35.2% | 18.2% | 2.7% | 2.2% | 4.1% | |
| EBITDA growth | 82.2% | 20.4% | -11.8% | 9.8% | 19.0% | |
| EBITDA Margin | 13.0% | 13.2% | 11.3% | 12.2% | 13.9% | 1.7% |
| Net Income Margin | 3.7% | 3.4% | 2.6% | 4.5% | 2.4% | -2.1% |
| CAPEX, % of revenue | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% | -1.8% |
| ROIC | 20.0% | 21.6% | 14.5% | 14.5% | 14.6% | 0.1% |
| ROE | 23.4% | 21.9% | 15.2% | 23.7% | 12.0% | -11.7% |
| Net Debt/EBITDA | 2.1x | 1.8x | 2.5x | 1.9x | 1.3x | -0.6x |
Revenue and profitability
Sona Koyo Steering Systems's Revenue increased on 4.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 2.4% to 5.0% in FY2015.
Net Income marign decreased on 2.1 pp from 4.5% to 2.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.3%. The company's CAPEX/Revenue decreased on 4.5 pp from 9.8% in FY2012 to 5.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at good ROIC (14.64%) while ROE is low (11.99%). ROIC showed almost no change in FY2015. ROE dropped on 11.7 pp from 23.7% to 12.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 0.6x from 1.9x to 1.3x in FY2015. Debt dropped on 14.5% in FY2015 while cash jumped on 363% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Sona Koyo Steering 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 ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| Motherson Sumi Systems ($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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.9% | 16.9% | 2.4% | 5.0% | 5.8% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | | 18.2% | 2.7% | 2.2% | 4.1% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.1% | 11.7% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 13.0% | 13.2% | 11.3% | 12.2% | 13.9% |
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 ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% |
| Lumax Auto Technologies ($LUMAXTECH) | 3.7% | 5.1% | 7.3% | 7.8% | |
| Munjal Auto Industries ($MUNJALAU) | 8.4% | 2.5% | 2.0% | 6.7% | |
| |
|---|
| Median (24 companies) | 8.0% | 5.6% | 4.5% | 4.8% | 5.3% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 7.2% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 20.0% | 21.6% | 14.5% | 14.5% | 14.6% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.1x |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 2.1x | 1.8x | 2.5x | 1.9x | 1.3x |
