Kirloskar Brothers Investments EBITDA dropped on 23.5% in 2015 while Revenue increased on 5.2%
19-05-2015 • About Kirloskar Brothers Investments (
$KBIL) • By InTwits
Kirloskar Brothers Investments reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.6% in FY2015, 13.2% in FY2014, 14.6% in FY2013, 13.2% in FY2012, 95.9% in FY2011
- Kirloskar Brothers Investments has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 793 in FY2015, 1,204 in FY2014, 1,396 in FY2013, 1,109 in FY2012, 1.2 in FY2011
- The company has business model with low profitability: ROIC is at 9.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kirloskar Brothers Investments ($KBIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 366 | 29,923 | 29,078 | 27,736 | 29,175 | 5.2% |
| EBITDA | 351 | 3,950 | 4,232 | 3,671 | 2,809 | -23.5% |
| Net Income | 345 | 2,388 | 1,309 | 1,193 | 907 | -24.0% |
Balance Sheet
|
|---|
| Cash | 652 | 606 | 618 | 748 | 632 | -15.5% |
| Short Term Debt | 0 | 970 | 63 | 0 | 0 | |
| Long Term Debt | 0 | 845 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1 | 1,109 | 1,396 | 1,204 | 793 | -34.2% |
Ratios
|
|---|
| Revenue growth | -98.9% | 8,068.8% | -2.8% | -4.6% | 5.2% | |
| EBITDA growth | | 1,024.4% | 7.1% | -13.3% | -23.5% | |
| EBITDA Margin | 95.9% | 13.2% | 14.6% | 13.2% | 9.6% | -3.6% |
| Net Income Margin | 94.3% | 8.0% | 4.5% | 4.3% | 3.1% | -1.2% |
| CAPEX, % of revenue | 0.3% | 3.7% | 4.8% | 4.3% | 2.7% | -1.6% |
| ROIC | 30.4% | 34.9% | 20.6% | 15.8% | 9.4% | -6.4% |
| ROE | 29.9% | 56.2% | 16.8% | 13.5% | 9.5% | -4.0% |
| Net Debt/EBITDA | -1.9x | 0.3x | -0.1x | -0.2x | -0.2x | -0.0x |
Revenue and profitability
Kirloskar Brothers Investments's Revenue increased on 5.2% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 13.2% to 9.6% in FY2015.
Net Income marign decreased slightly on 1.2 pp from 4.3% to 3.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Kirloskar Brothers Investments had CAPEX/Revenue of 2.7%. The company's CAPEX/Revenue decreased slightly on 0.99 pp from 3.7% in FY2012 to 2.7% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at low ROIC (9.38%) and ROE (9.51%). ROIC decreased on 6.4 pp from 15.8% to 9.4% in FY2015. ROE decreased on 4.0 pp from 13.5% to 9.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 15.5% in FY2015.
Valuation
Kirloskar Brothers Investments's trades at EV/EBITDA 6.9x and P/E 22.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 9.6x with the industry average at 4.7x.
Appendix 1: Peers in Holding Companies
Below you can find Kirloskar Brothers Investments benchmarking vs. other companies in Holding Companies 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 |
|---|
| Network18 Media & Investments ($NETWORK18) | | 33.4% | 19.4% | 14.0% | 15.8% |
| Binani Industries ($BINANIIND) | -55.2% | 26.5% | 46.0% | 5.7% | |
| |
|---|
| Median (2 companies) | -55.2% | 29.9% | 32.7% | 9.8% | 15.8% |
|---|
| Kirloskar Brothers Investments ($KBIL) | | 8,068.8% | -2.8% | -4.6% | 5.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Binani Industries ($BINANIIND) | 11.5% | 10.1% | 11.8% | 7.0% | |
| Network18 Media & Investments ($NETWORK18) | 2.2% | -13.9% | -1.7% | 3.7% | 5.0% |
| |
|---|
| Median (2 companies) | 6.9% | -1.9% | 5.1% | 5.4% | 5.0% |
|---|
| Kirloskar Brothers Investments ($KBIL) | 95.9% | 13.2% | 14.6% | 13.2% | 9.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Binani Industries ($BINANIIND) | 20.0% | 79.8% | 6.4% | 5.6% | |
| Network18 Media & Investments ($NETWORK18) | 2.2% | 4.4% | 3.0% | 4.4% | 4.3% |
| |
|---|
| Median (2 companies) | 11.1% | 42.1% | 4.7% | 5.0% | 4.3% |
|---|
| Kirloskar Brothers Investments ($KBIL) | 0.3% | 3.7% | 4.8% | 4.3% | 2.7% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Binani Industries ($BINANIIND) | 4.4% | 3.2% | 4.9% | 0.7% | |
| Network18 Media & Investments ($NETWORK18) | -0.7% | -10.8% | -2.8% | 0.3% | 1.6% |
| |
|---|
| Median (2 companies) | 1.8% | -3.8% | 1.1% | 0.5% | 1.6% |
|---|
| Kirloskar Brothers Investments ($KBIL) | 30.4% | 34.9% | 20.6% | 15.8% | 9.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Binani Industries ($BINANIIND) | 8.2x | 13.0x | 8.0x | 15.2x | |
| Network18 Media & Investments ($NETWORK18) | 41.0x | | | 7.4x | 4.2x |
| |
|---|
| Median (2 companies) | 24.6x | 13.0x | 8.0x | 11.3x | 4.2x |
|---|
| Kirloskar Brothers Investments ($KBIL) | -1.9x | 0.3x | -0.1x | -0.2x | -0.2x |
