Trending stocks

Harita Seating Systems revenue surged on 13.0% in 2015 and EBITDA Margin decreased slightly on 0.93 pp from 7.2% to 6.3%

19-05-2015 • About Harita Seating Systems ($HARITASEAT) • By InTwits

Harita Seating Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is relatively stable: 6.3% in FY2015 vs. 7.2% in FY2014 vs. 8.3% in FY2011
  • Harita Seating Systems has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 6.0%.
  • CAPEX is quite volatile: 80.7 in FY2015, 68.2 in FY2014, 144 in FY2013, 223 in FY2012, 247 in FY2011
  • The company has highly profitable business model: ROIC is at 12.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Harita Seating Systems ($HARITASEAT) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue4,5765,6605,2745,1235,78813.0%
EBITDA378468415369363-1.6%
Net Income136165116788913.8%
Balance Sheet
Cash2042830609353.8%
Short Term Debt434329334298248-16.9%
Long Term Debt8381286480-100.0%
Cash flow
Capex247223144688118.3%
Ratios
Revenue growth-35.9%23.7%-6.8%-2.9%13.0%
EBITDA growth181.7%23.9%-11.3%-11.1%-1.6%
EBITDA Margin8.3%8.3%7.9%7.2%6.3%-0.9%
Net Income Margin3.0%2.9%2.2%1.5%1.5%0.0%
CAPEX, % of revenue5.4%3.9%2.7%1.3%1.4%0.1%
ROIC11.9%16.6%16.2%12.7%12.5%-0.1%
ROE29.0%32.3%18.7%11.2%11.8%0.6%
Net Debt/EBITDA2.8x0.9x0.9x0.7x0.4x-0.2x

Revenue and profitability


Harita Seating Systems's Revenue surged on 13.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from -12.2% to -15.3% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 Harita Seating Systems had CAPEX/Revenue of 1.4%. Harita Seating Systems's CAPEX/Revenue decreased on 2.5 pp from 3.9% in FY2012 to 1.4% in FY2015. For the last three years the average CAPEX/Revenue was 1.8%.

Return on investment


The company operates at good ROIC (12.55%) while ROE is low (11.83%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.62 pp from 11.2% to 11.8% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.2x from 0.7x to 0.4x in FY2015. Debt dropped on 19.1% in FY2015 while cash jumped on 53.8% in FY2015.

Valuation


The company's trades at EV/EBITDA 3.9x and P/E 14.3x while industy averages are 10.5x and 26.1x. Harita Seating Systems's EV/(EBITDA-CAPEX) is 5.1x with the industry average at 4.7x.

Appendix 1: Peers in Auto Parts & Equipment


Below we provide Harita Seating 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)-35.3%16.9%2.7%5.0%8.2%
Harita Seating Systems ($HARITASEAT)23.7%-6.8%-2.9%13.0%


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%18.7%
Suprajit Engineering ($SUPRAJIT)16.5%16.2%17.0%17.2%
 
Median (34 companies)10.9%11.1%9.9%10.8%12.2%
Harita Seating Systems ($HARITASEAT)8.3%8.3%7.9%7.2%6.3%


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%4.7%5.2%5.5%
Harita Seating Systems ($HARITASEAT)5.4%3.9%2.7%1.3%1.4%


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%13.5%
Harita Seating Systems ($HARITASEAT)11.9%16.6%16.2%12.7%12.5%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Tube Investments Of India ($TUBEINVEST)8.1x17.6x17.8x17.3x16.4x
Autoline Industries ($AUTOIND)3.1x3.2x4.0x12.0x
Reil Electricals India ($REILELEC)-0.1x-0.0x1.5x9.1x
Steel Strips Wheels ($SSWL)4.6x5.4x6.3x6.5x5.6x
Automotive Stampings & Assemblies ($ASAL)1.8x1.1x3.9x6.3x
 
Median (44 companies)2.1x1.3x2.2x0.8x2.2x
Harita Seating Systems ($HARITASEAT)2.8x0.9x0.9x0.7x0.4x


Similar news

19-05-2015 Entertainment Network (India) Net Income jumped on 26.7% in 2015 and EBITDA Margin increased slightly on 0.84 pp from 32.4% to 33.3%

19-05-2015 K.C.P reports 53.8% CAPEX decline while 12.4% Revenue growth

19-05-2015 Pidilite Industries reports 116% CAPEX growth and 13.1% Revenue growth

19-05-2015 Tata Power Co CAPEX dropped on 19.4% in 2015 and Revenue decreased on 6.0%

19-05-2015 Cheviot Co Net Income jumped on 29.0% in 2015 while EBITDA Margin decreased on 3.4 pp from 13.5% to 10.1%