Arshiya revenue dropped on 37.2% in 2015 while EBITDA Margin jumped on 16.0 pp from -6.3% to 9.7%
16-05-2015 • About Arshiya (
$ARSHIYA) • By InTwits
Arshiya reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arshiya is a company in decline: FY2015 revenue growth was -37.2%, 5 years revenue CAGR was -3.5%
- EBITDA Margin is quite volatile: 9.7% in FY2015, -6.3% in FY2014, 15.5% in FY2013, 25.7% in FY2012, 19.5% in FY2011
- Arshiya has high CAPEX intensity: 5 year average CAPEX/Revenue was 49.8%. At the same time it's a lot of higher than industry average of 15.7%.
- CAPEX is quite volatile: 8.1 in FY2015, 160 in FY2014, 4,417 in FY2013, 9,776 in FY2012, 9,397 in FY2011
- The company has unprofitable business model: ROIC is at -2.2%
- It operates with high leverage: Net Debt/EBITDA is 80.6x while industry average is 18.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Arshiya ($ARSHIYA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,215 | 10,573 | 11,396 | 5,166 | 3,242 | -37.2% |
| EBITDA | 1,600 | 2,717 | 1,765 | -326 | 315 | |
| Net Income | 820 | 1,208 | -1,272 | -8,462 | -4,740 | |
Balance Sheet
|
|---|
| Cash | 1,223 | 629 | 74 | 100 | 45 | -55.3% |
| Short Term Debt | 839 | 1,926 | 6,026 | 4,970 | 4,635 | -6.7% |
| Long Term Debt | 12,684 | 20,960 | 20,438 | 25,091 | 20,816 | -17.0% |
Cash flow
|
|---|
| Capex | 9,397 | 9,776 | 4,417 | 160 | 8 | -95.0% |
Ratios
|
|---|
| Revenue growth | 111.9% | 28.7% | 7.8% | -54.7% | -37.2% | |
| EBITDA growth | 22.5% | 69.8% | -35.0% | -118.5% | -196.6% | |
| EBITDA Margin | 19.5% | 25.7% | 15.5% | -6.3% | 9.7% | 16.0% |
| Net Income Margin | 10.0% | 11.4% | -11.2% | -163.8% | -146.2% | 17.6% |
| CAPEX, % of revenue | 114.4% | 92.5% | 38.8% | 3.1% | 0.2% | -2.9% |
| ROIC | 8.5% | 9.1% | 3.5% | -3.3% | -2.2% | 1.1% |
| ROE | 11.6% | 15.0% | -14.6% | -117.5% | -119.6% | -2.0% |
| Net Debt/EBITDA | 7.7x | 8.2x | 15.0x | | 80.6x | 80.6x |
Revenue and profitability
The company's Revenue dropped on 37.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.0 pp from -6.3% to 9.7% in FY2015.
Net Income marign jumped on 17.6 pp from -164% to -146% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.25%. Arshiya's CAPEX/Revenue dropped on 92.2 pp from 92.5% in FY2012 to 0.25% in FY2015. For the last three years the average CAPEX/Revenue was 14.0%.
Return on investment
The company operates at negative ROIC (-2.19%) and ROE (-119.57%). ROIC increased slightly on 1.1 pp from -3.3% to -2.2% in FY2015. ROE decreased on 2.0 pp from -118% to -120% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 80.6x and Debt / EBITDA is 80.8x. Net Debt / EBITDA jumped80.6x from to 80.6x in FY2015. Debt dropped on 15.3% in FY2015 while cash dropped on 55.3% in FY2015.
Appendix 1: Peers in Transportation - Logistics
Below you can find Arshiya benchmarking vs. other companies in Transportation - Logistics 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, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snowman Logistics ($SNOWMAN) | | 35.9% | 85.2% | 34.9% | 32.3% |
| Sical Logistics ($SICAL) | -20.5% | 1.3% | -2.4% | 10.7% | |
| Gateway Distriparks ($GDL) | | 36.6% | 16.1% | 6.2% | 9.7% |
| |
|---|
| Median (3 companies) | -20.5% | 18.6% | 11.3% | 10.7% | 21.0% |
|---|
| Arshiya ($ARSHIYA) | | 28.7% | 7.8% | -54.7% | -37.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gateway Distriparks ($GDL) | 27.3% | 30.4% | 25.6% | 25.4% | 29.4% |
| Snowman Logistics ($SNOWMAN) | 25.4% | 25.7% | 22.8% | 26.0% | 23.2% |
| Gati ($GATI) | 7.7% | 6.7% | 6.5% | | 8.6% |
| |
|---|
| Median (3 companies) | 16.6% | 18.0% | 17.5% | 25.4% | 23.2% |
|---|
| Arshiya ($ARSHIYA) | 19.5% | 25.7% | 15.5% | -6.3% | 9.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snowman Logistics ($SNOWMAN) | 61.4% | 46.2% | 100.1% | 76.9% | 46.9% |
| Gateway Distriparks ($GDL) | 27.3% | 13.7% | 25.1% | 19.6% | 14.0% |
| Gati ($GATI) | 2.2% | | 3.1% | | 7.4% |
| |
|---|
| Median (3 companies) | 25.9% | 19.4% | 23.5% | 19.6% | 14.0% |
|---|
| Arshiya ($ARSHIYA) | 114.4% | 92.5% | 38.8% | 3.1% | 0.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gateway Distriparks ($GDL) | 10.6% | 15.3% | 13.0% | 11.7% | 15.6% |
| Gati ($GATI) | 8.8% | 4.8% | 4.8% | 0.0% | 8.3% |
| Snowman Logistics ($SNOWMAN) | 7.3% | 9.4% | 10.0% | 8.1% | 5.2% |
| |
|---|
| Median (3 companies) | 8.1% | 7.1% | 7.4% | 6.1% | 8.3% |
|---|
| Arshiya ($ARSHIYA) | 8.5% | 9.1% | 3.5% | -3.3% | -2.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gati ($GATI) | 4.6x | 4.1x | 5.2x | | 2.9x |
| Gateway Distriparks ($GDL) | 1.8x | 0.2x | 0.7x | 1.0x | 0.4x |
| Snowman Logistics ($SNOWMAN) | -2.5x | -0.8x | 3.4x | 3.3x | 0.1x |
| |
|---|
| Median (3 companies) | 1.8x | 2.1x | 4.3x | 3.3x | 0.4x |
|---|
| Arshiya ($ARSHIYA) | 7.7x | 8.2x | 15.0x | | 80.6x |
