Gabriel India reports 28.1% EBITDA growth and 12.2% Revenue growth
20-05-2015 • About Gabriel India (
$GABRIEL) • By InTwits
Gabriel India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gabriel India has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's in pair with industry average of 5.6%.
- CAPEX is quite volatile: 762 in FY2015, 1,946 in FY2014, 1,650 in FY2013, 3,346 in FY2012, 2,776 in FY2011
- The company has highly profitable business model: ROIC is at 24.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gabriel India ($GABRIEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,617 | 11,153 | 11,960 | 12,745 | 14,298 | 12.2% |
| EBITDA | 894 | 985 | 831 | 910 | 1,165 | 28.1% |
| Net Income | 453 | 531 | 381 | 426 | 600 | 40.9% |
Balance Sheet
|
|---|
| Cash | 22 | 25 | 33 | 40 | 30 | -24.8% |
| Short Term Debt | 0 | 984 | 642 | 564 | 71 | -87.3% |
| Long Term Debt | 1,491 | 247 | 164 | 96 | 61 | -35.7% |
Cash flow
|
|---|
| Capex | 559 | 350 | 690 | 396 | 348 | -12.2% |
Ratios
|
|---|
| Revenue growth | -43.2% | 16.0% | 7.2% | 6.6% | 12.2% | |
| EBITDA growth | 37.5% | 10.1% | -15.6% | 9.5% | 28.1% | |
| EBITDA Margin | 9.3% | 8.8% | 6.9% | 7.1% | 8.2% | 1.0% |
| Net Income Margin | 4.7% | 4.8% | 3.2% | 3.3% | 4.2% | 0.9% |
| CAPEX, % of revenue | 5.8% | 3.1% | 5.8% | 3.1% | 2.4% | -0.7% |
| ROIC | 20.3% | 19.9% | 15.5% | 18.0% | 24.0% | 6.0% |
| ROE | 27.0% | 25.4% | 15.6% | 15.7% | 19.7% | 3.9% |
| Net Debt/EBITDA | 1.6x | 1.2x | 0.9x | 0.7x | 0.1x | -0.6x |
Revenue and profitability
Gabriel India's Revenue surged on 12.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from 15.0% to 17.1% in FY2015.
Net Income marign increased slightly on 0.86 pp from 3.3% to 4.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Gabriel India's CAPEX/Revenue was 2.4% in FY2015. CAPEX/Revenue decreased slightly on 0.71 pp from 3.1% in FY2012 to 2.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at high and attractive ROIC (23.97%) while ROE is a bit lower (19.66%). ROIC increased on 6.0 pp from 18.0% to 24.0% in FY2015. ROE increased on 3.9 pp from 15.7% to 19.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 0.6x from 0.7x to 0.1x in FY2015. Debt dropped on 79.9% in FY2015 while cash dropped on 24.8% in FY2015.
Valuation
The company's trades at EV/EBITDA 10.5x and P/E 20.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 15.0x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Gabriel India 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.0% | 17.2% | 2.4% | 4.9% | 8.3% |
|---|
| Gabriel India ($GABRIEL) | | 16.0% | 7.2% | 6.6% | 12.2% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.9% | 10.8% | 12.0% |
|---|
| Gabriel India ($GABRIEL) | 9.3% | 8.8% | 6.9% | 7.1% | 8.2% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.5% | 5.2% | 5.3% |
|---|
| Gabriel India ($GABRIEL) | 5.8% | 3.1% | 5.8% | 3.1% | 2.4% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 12.5% |
|---|
| Gabriel India ($GABRIEL) | 20.3% | 19.9% | 15.5% | 18.0% | 24.0% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.8x | 1.8x |
|---|
| Gabriel India ($GABRIEL) | 1.6x | 1.2x | 0.9x | 0.7x | 0.1x |
