Wheels India Debt jumped on 17.4% in 2015 and Revenue increased on 8.6%
18-05-2015 • About Wheels India (
$WHEELS) • By InTwits
Wheels India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wheels India has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 5.6%.
- CAPEX is quite volatile: 726 in FY2015, 1,023 in FY2014, 567 in FY2013, 1,227 in FY2012, 1,433 in FY2011
- The company has highly profitable business model: ROIC is at 12.3%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wheels India ($WHEELS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 17,006 | 18,723 | 17,363 | 18,232 | 19,799 | 8.6% |
| EBITDA | 1,295 | 1,959 | 1,715 | 1,475 | 1,523 | 3.2% |
| Net Income | 246 | 343 | 319 | 284 | 297 | 4.7% |
Balance Sheet
|
|---|
| Cash | 10 | 6 | 14 | 26 | 68 | 157.2% |
| Short Term Debt | 1,455 | 2,112 | 2,148 | 2,095 | 2,261 | 7.9% |
| Long Term Debt | 1,840 | 1,765 | 2,047 | 1,222 | 1,631 | 33.5% |
Cash flow
|
|---|
| Capex | 497 | 614 | 1,074 | 784 | 694 | -11.5% |
Ratios
|
|---|
| Revenue growth | -29.6% | 10.1% | -7.3% | 5.0% | 8.6% | |
| EBITDA growth | 51.8% | 51.2% | -12.5% | -14.0% | 3.2% | |
| EBITDA Margin | 7.6% | 10.5% | 9.9% | 8.1% | 7.7% | -0.4% |
| Net Income Margin | 1.4% | 1.8% | 1.8% | 1.6% | 1.5% | -0.1% |
| CAPEX, % of revenue | 2.9% | 3.3% | 6.2% | 4.3% | 3.5% | -0.8% |
| ROIC | 13.9% | 22.9% | 16.7% | 12.4% | 12.3% | -0.0% |
| ROE | 11.8% | 15.0% | 12.8% | 9.1% | 8.0% | -1.1% |
| Net Debt/EBITDA | 2.5x | 2.0x | 2.4x | 2.2x | 2.5x | 0.3x |
Revenue and profitability
Wheels India's Revenue increased on 8.6% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Wheels India's CAPEX/Revenue was 3.5% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 4.7%.
Return on investment
The company operates at good ROIC (12.33%) while ROE is low (7.99%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.1 pp from 9.1% to 8.0% in FY2015.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 2.2x to 2.5x in FY2015. Debt jumped on 17.4% in FY2015 while cash jumped on 157% in FY2015.
Valuation
The company's trades at EV/EBITDA 12.7x and P/E 52.2x while industy averages are 10.5x and 26.1x. Wheels India's EV/(EBITDA-CAPEX) is 23.3x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Wheels India benchmarking vs. other companies in Auto Parts & Equipment 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 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.6% | 17.2% | 2.7% | 4.9% | 7.0% |
|---|
| Wheels India ($WHEELS) | | 10.1% | -7.3% | 5.0% | 8.6% |
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% | 18.7% |
| Suprajit Engineering ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.8% | 10.8% | 12.4% |
|---|
| Wheels India ($WHEELS) | 7.6% | 10.5% | 9.9% | 8.1% | 7.7% |
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% | |
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.5% | 5.2% | 5.6% |
|---|
| Wheels India ($WHEELS) | 2.9% | 3.3% | 6.2% | 4.3% | 3.5% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 16.5% | 15.7% | 11.8% | 14.5% | 14.6% |
|---|
| Wheels India ($WHEELS) | 13.9% | 22.9% | 16.7% | 12.4% | 12.3% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.8x |
|---|
| Wheels India ($WHEELS) | 2.5x | 2.0x | 2.4x | 2.2x | 2.5x |
