T D Power Systems revenue surged on 24.4% in 2015 and EBITDA Margin decreased slightly on 0.89 pp from 4.2% to 3.3%
20-05-2015 • About T D Power Systems (
$TDPOWERSYS) • By InTwits
T D Power Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- T D Power Systems doesn't have a profitable business model yet: FY2015 ROIC is -1.5%
- EBITDA Margin is quite volatile: 3.3% in FY2015, 4.2% in FY2014, 8.8% in FY2013, 8.9% in FY2012, 10.4% in FY2011
- T D Power Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.7%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 226 in FY2015, 727 in FY2014, 849 in FY2013, 384 in FY2012, 132 in FY2011
- The company has unprofitable business model: ROIC is at -1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
T D Power Systems ($TDPOWERSYS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,637 | 10,316 | 5,871 | 4,802 | 5,974 | 24.4% |
| EBITDA | 894 | 920 | 519 | 203 | 199 | -1.8% |
| Net Income | 567 | 671 | 417 | 224 | -8 | -103.7% |
Balance Sheet
|
|---|
| Cash | 810 | 430 | 222 | 484 | 2,721 | 462.0% |
| Short Term Debt | 617 | 346 | 270 | 630 | 574 | -8.9% |
| Long Term Debt | 239 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 132 | 384 | 849 | 727 | 226 | -68.8% |
Ratios
|
|---|
| Revenue growth | 18.0% | 19.4% | -43.1% | -18.2% | 24.4% | |
| EBITDA growth | 24.5% | 2.9% | -43.6% | -61.0% | -1.8% | |
| EBITDA Margin | 10.4% | 8.9% | 8.8% | 4.2% | 3.3% | -0.9% |
| Net Income Margin | 6.6% | 6.5% | 7.1% | 4.7% | -0.1% | -4.8% |
| CAPEX, % of revenue | 1.5% | 3.7% | 14.5% | 15.1% | 3.8% | -11.3% |
| ROIC | 33.1% | 21.2% | 7.6% | 0.9% | -1.5% | -2.5% |
| ROE | 35.5% | 20.8% | 8.8% | 4.5% | -0.2% | -4.6% |
| Net Debt/EBITDA | 0.1x | -0.1x | 0.1x | 0.7x | -10.8x | -11.5x |
Revenue and profitability
T D Power Systems's Revenue jumped on 24.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.76 pp from 4.1% to 3.3% in FY2015.
Net Income marign decreased on 4.8 pp from 4.7% to -0.14% in FY2015.
Capital expenditures (CAPEX) and working capital investments
T D Power Systems's CAPEX/Revenue was 3.8% in FY2015. T D Power Systems showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 11.1%.T D Power Systems has spent a lot to CAPEX (114% of EBITDA) to secure its growth.
Return on investment
The company operates at negative ROIC (-1.52%) and ROE (-0.17%). ROIC decreased on 2.5 pp from 0.95% to -1.5% in FY2015. ROE decreased on 4.6 pp from 4.5% to -0.17% in FY2015.
Leverage (Debt)
Debt level is -10.8x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA dropped on 11.5x from 0.7x to -10.8x in FY2015. Debt decreased on 8.9% in FY2015 while cash surged on 462% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find T D Power Systems benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| Ujaas Energy ($UJAAS) | -71.9% | 1.1% | 614.7% | 116.7% | |
| Transformers And Rectifiers (India) ($TRIL) | -20.6% | -4.4% | -1.3% | 42.8% | |
| Jyoti Structures ($JYOTISTRUC) | -35.2% | 15.3% | 8.9% | 20.7% | |
| Emco ($EMCO) | -4.5% | -19.1% | -13.0% | 20.2% | |
| Crompton Greaves ($CROMPGREAV) | 9.5% | 12.4% | 7.5% | 12.7% | |
| |
|---|
| Median (15 companies) | -14.1% | 13.6% | -7.7% | 1.7% | 16.2% |
|---|
| T D Power Systems ($TDPOWERSYS) | | 19.4% | -43.1% | -18.2% | 24.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 30.3% | 33.2% | 27.2% | 28.6% | |
| |
|---|
| Median (1 company) | 30.3% | 33.2% | 27.2% | 28.6% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techno Electric And Engineering Co. ($TECHNO) | 23.3% | 27.0% | 34.5% | 28.5% | |
| Techno Electric & Engineering Company ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | |
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | |
| Bgr Energy Systems ($BGRENERGY) | 12.4% | 14.1% | 14.6% | 12.2% | |
| Bharat Heavy Electricals ($BHEL) | 20.6% | 21.0% | 19.7% | 11.8% | |
| |
|---|
| Median (15 companies) | 12.5% | 9.4% | 8.8% | 6.8% | 8.3% |
|---|
| T D Power Systems ($TDPOWERSYS) | 10.4% | 8.9% | 8.8% | 4.2% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | |
| Ujaas Energy ($UJAAS) | 6.8% | 87.8% | 1.4% | 20.2% | |
| Bharat Heavy Electricals ($BHEL) | 5.2% | 3.3% | 3.6% | 4.1% | |
| Suzlon Energy ($SUZLON) | 4.6% | 4.2% | 3.7% | 3.4% | |
| |
|---|
| Median (14 companies) | 5.4% | 5.7% | 3.0% | 2.3% | 2.5% |
|---|
| T D Power Systems ($TDPOWERSYS) | 1.5% | 3.7% | 14.5% | 15.1% | 3.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | |
| Alstom India ($AIL) | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% |
| Bharat Heavy Electricals ($BHEL) | 46.1% | 41.5% | 29.5% | 10.3% | |
| Crompton Greaves ($CROMPGREAV) | 32.5% | 12.9% | 3.5% | 10.1% | |
| Bgr Energy Systems ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | |
| |
|---|
| Median (17 companies) | 17.4% | 14.1% | 6.3% | 9.3% | 5.4% |
|---|
| T D Power Systems ($TDPOWERSYS) | 33.1% | 21.2% | 7.6% | 0.9% | -1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 9.7x | 6.1x | | 87.6x | |
| Sterlite Technologies ($STRTECH) | 2.8x | 4.6x | 10.2x | 15.4x | 11.1x |
| Jyoti Structures ($JYOTISTRUC) | 1.3x | 2.4x | 3.6x | 5.7x | |
| Emco ($EMCO) | | 8.1x | 7.3x | 5.7x | |
| Swelect Energy Systems ($SWELECTES) | 0.5x | 0.5x | 1.3x | 5.0x | |
| |
|---|
| Median (15 companies) | 1.3x | 2.5x | 3.0x | 2.5x | -0.1x |
|---|
| T D Power Systems ($TDPOWERSYS) | 0.1x | -0.1x | 0.1x | 0.7x | -10.8x |
