Timex Group India revenue surged on 15.2% in 2015 and EBITDA Margin surged on 14.4 pp from -19.1% to -4.7%
21-05-2015 • About Timex Group India (
$TIMEX) • By InTwits
Timex Group India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -4.7%
- Timex Group India motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -4.6% for the sames years0
- Timex Group India has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.5%.
- CAPEX is quite volatile: 8.4 in FY2015, 13.8 in FY2014, 25.7 in FY2013, 27 in FY2012, 24.6 in FY2011
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Timex Group India ($TIMEX) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,732 | 1,835 | 1,214 | 1,236 | 1,424 | 15.2% |
| EBITDA | 185 | 130 | -355 | -236 | -67 | |
| Net Income | 140 | 45 | -420 | -330 | -110 | |
Balance Sheet
|
|---|
| Cash | 57 | 33 | 56 | 52 | 45 | -14.7% |
| Short Term Debt | 0 | 87 | 103 | 171 | 277 | 61.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 25 | 27 | 26 | 14 | 8 | -39.1% |
Ratios
|
|---|
| Revenue growth | 7.2% | 6.0% | -33.8% | 1.8% | 15.2% | |
| EBITDA growth | 326.5% | -30.0% | -373.6% | -33.3% | -71.7% | |
| EBITDA Margin | 10.7% | 7.1% | -29.2% | -19.1% | -4.7% | 14.4% |
| Net Income Margin | 8.1% | 2.5% | -34.6% | -26.7% | -7.7% | 19.0% |
| CAPEX, % of revenue | 1.4% | 1.5% | 2.1% | 1.1% | 0.6% | -0.5% |
| ROIC | 24.0% | 13.6% | -70.8% | -836.7% | | 836.7% |
| ROE | 57.0% | 14.8% | | | | 0.0% |
| Net Debt/EBITDA | -0.3x | 0.4x | | | | 0.0x |
Revenue and profitability
Timex Group India's Revenue surged on 15.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 17.0% to 19.5% in FY2015.
Net Income marign surged on 19.0 pp from -26.7% to -7.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.59%. Timex Group India's CAPEX/Revenue decreased slightly on 0.88 pp from 1.5% in FY2012 to 0.59% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt surged on 61.9% in FY2015 while cash dropped on 14.7% in FY2015.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Timex Group India benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Page Industries ($PAGEIND) | -73.3% | 39.0% | 26.3% | 37.5% | |
| Bhartiya International ($BIL) | -71.6% | 28.4% | 20.9% | 36.7% | |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -16.8% | 10.4% | 19.5% | 15.3% | 6.4% |
|---|
| Timex Group India ($TIMEX) | | 6.0% | -33.8% | 1.8% | 15.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 19.9% | 21.1% | 20.5% | 21.5% | |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
| Zodiac Clothing Co ($ZODIACLOTH) | 11.0% | 9.3% | 8.8% | 10.8% | |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | 13.7% |
| Tara Jewels ($TARAJEWELS) | 8.5% | 9.2% | 9.1% | 9.2% | |
| |
|---|
| Median (18 companies) | 7.9% | 7.6% | 6.1% | 6.1% | 5.6% |
|---|
| Timex Group India ($TIMEX) | 10.7% | 7.1% | -29.2% | -19.1% | -4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| |
|---|
| Median (14 companies) | 1.9% | 1.8% | 1.3% | 1.2% | 0.7% |
|---|
| Timex Group India ($TIMEX) | 1.4% | 1.5% | 2.1% | 1.1% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | |
| Oscar Global ($OSCARGLO) | | | 12.6% | 52.3% | |
| Virat Industries ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | 23.8% |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | 39.9% |
| |
|---|
| Median (40 companies) | 8.8% | 9.3% | 7.2% | 11.0% | 16.0% |
|---|
| Timex Group India ($TIMEX) | 24.0% | 13.6% | -70.8% | -836.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (25 companies) | 2.7x | 2.3x | 2.7x | 0.0x | 0.4x |
|---|
