Shipping Corporation Of India Net Debt / EBITDA dropped on 6.6x from 12.3x to 5.7x in 2015 while EBITDA jumped on 65.8%
21-05-2015 • About Shipping Corporation Of India (
$SCI) • By InTwits
Shipping Corporation Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shipping Corporation Of India doesn't have a profitable business model yet: FY2015 ROIC is 1.5%
- EBITDA Margin is quite volatile: 23.5% in FY2015, 14.2% in FY2014, 6.1% in FY2013, 7.8% in FY2012, 27.2% in FY2011
- Shipping Corporation Of India has high CAPEX intensity: 5 year average CAPEX/Revenue was 52.8%. At the same time it's a lot of higher than industry average of 42.6%.
- CAPEX is quite volatile: 7,159 in FY2015, 11,346 in FY2014, 29,163 in FY2013, 21,889 in FY2012, 32,635 in FY2011
- The company has potentially unprofitable business model: ROIC is at 1.5%
- It operates with high leverage: Net Debt/EBITDA is 5.7x while industry average is 4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shipping Corporation Of India ($SCI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 35,434 | 38,208 | 41,536 | 41,552 | 41,538 | -0.0% |
| Gross Profit | 12,890 | 4,924 | | | | |
| EBITDA | 9,646 | 2,991 | 2,533 | 5,886 | 9,761 | 65.8% |
| Net Income | 5,674 | -4,282 | -1,143 | -2,747 | 2,009 | |
Balance Sheet
|
|---|
| Cash | 24,660 | 14,417 | 12,642 | 10,182 | 12,555 | 23.3% |
| Short Term Debt | 6,588 | 7,972 | 76,629 | 16,862 | 12,632 | -25.1% |
| Long Term Debt | 40,563 | 55,258 | 5,015 | 65,707 | 55,699 | -15.2% |
Cash flow
|
|---|
| Capex | 32,635 | 21,889 | 29,163 | 11,346 | 7,159 | -36.9% |
Ratios
|
|---|
| Revenue growth | -32.7% | 7.8% | 8.7% | 0.0% | -0.0% | |
| EBITDA growth | 71.6% | -69.0% | -15.3% | 132.4% | 65.8% | |
| Gross Margin | 36.4% | 12.9% | | | | 0.0% |
| EBITDA Margin | 27.2% | 7.8% | 6.1% | 14.2% | 23.5% | 9.3% |
| Net Income Margin | 16.0% | -11.2% | -2.8% | -6.6% | 4.8% | 11.4% |
| CAPEX, % of revenue | 92.1% | 57.3% | 70.2% | 27.3% | 17.2% | -10.1% |
| ROIC | 4.8% | -2.5% | -3.6% | -1.8% | 1.5% | 3.3% |
| ROE | 8.4% | -6.2% | -1.7% | -4.2% | 3.1% | 7.4% |
| Net Debt/EBITDA | 2.3x | 16.3x | 27.2x | 12.3x | 5.7x | -6.6x |
Revenue and profitability
Shipping Corporation Of India's Revenue showed almost no change in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign jumped on 11.4 pp from -6.6% to 4.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 17.2%. Shipping Corporation Of India's CAPEX/Revenue dropped on 40.1 pp from 57.3% in FY2012 to 17.2% in FY2015. For the last three years the average CAPEX/Revenue was 38.3%.Shipping Corporation Of India invested a big chunk of EBITDA (73.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (1.46%) and ROE (3.12%). ROIC increased on 3.3 pp from -1.8% to 1.5% in FY2015. ROE increased on 7.4 pp from -4.2% to 3.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.7x and Debt / EBITDA is 7.0x. Net Debt / EBITDA dropped on 6.6x from 12.3x to 5.7x in FY2015. Debt dropped on 17.2% in FY2015 while cash jumped on 23.3% in FY2015.
Appendix 1: Peers in Shipping
Below you can find Shipping Corporation Of India benchmarking vs. other companies in Shipping 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 |
|---|
| Global Offshore Services ($GLOBOFFS) | -55.7% | 14.0% | 2.9% | 52.2% | |
| Shreyas Shipping & Logistics ($SHREYAS) | -71.0% | 42.2% | 43.6% | 25.3% | |
| Great Eastern Shipping Co ($GESHIP) | | 20.6% | 1.6% | 2.3% | 11.8% |
| |
|---|
| Median (3 companies) | -63.3% | 20.6% | 2.9% | 25.3% | 11.8% |
|---|
| Shipping Corporation Of India ($SCI) | | 7.8% | 8.7% | 0.0% | -0.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | 42.7% | 42.1% | 62.4% | 48.3% | |
| Great Eastern Shipping Co ($GESHIP) | 36.7% | 37.1% | 39.0% | 47.1% | 44.7% |
| Shreyas Shipping & Logistics ($SHREYAS) | 16.2% | 9.0% | 10.7% | 9.4% | |
| |
|---|
| Median (3 companies) | 36.7% | 37.1% | 39.0% | 47.1% | 44.7% |
|---|
| Shipping Corporation Of India ($SCI) | 27.2% | 7.8% | 6.1% | 14.2% | 23.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | | 39.6% | 140.1% | 106.2% | |
| Great Eastern Shipping Co ($GESHIP) | 105.3% | 51.0% | 48.2% | 20.4% | 45.5% |
| Shreyas Shipping & Logistics ($SHREYAS) | 2.7% | 7.5% | 17.9% | 1.3% | |
| |
|---|
| Median (3 companies) | 54.0% | 39.6% | 48.2% | 20.4% | 45.5% |
|---|
| Shipping Corporation Of India ($SCI) | 92.1% | 57.3% | 70.2% | 27.3% | 17.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 8.9% | 4.8% | 9.4% | 9.8% | |
| Global Offshore Services ($GLOBOFFS) | 6.0% | 5.6% | 9.0% | 7.1% | |
| Great Eastern Shipping Co ($GESHIP) | 4.1% | 4.4% | 4.5% | 6.0% | 7.1% |
| |
|---|
| Median (3 companies) | 6.0% | 4.8% | 9.0% | 7.1% | 7.1% |
|---|
| Shipping Corporation Of India ($SCI) | 4.8% | -2.5% | -3.6% | -1.8% | 1.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | 7.0x | 6.8x | 5.8x | 6.4x | |
| Great Eastern Shipping Co ($GESHIP) | 3.2x | 5.9x | 5.8x | 3.7x | 2.2x |
| Shreyas Shipping & Logistics ($SHREYAS) | 1.9x | 3.0x | 3.0x | 2.3x | |
| |
|---|
| Median (3 companies) | 3.2x | 5.9x | 5.8x | 3.7x | 2.2x |
|---|
| Shipping Corporation Of India ($SCI) | 2.3x | 16.3x | 27.2x | 12.3x | 5.7x |
