Ujaas Energy revenue dropped on 78.9% in 2015 while EBITDA Margin jumped on 20.7 pp from 17.4% to 38.1%
21-05-2015 • About Ujaas Energy (
$UJAAS) • By InTwits
Ujaas Energy reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 38.1% in FY2015, 17.4% in FY2014, 18.7% in FY2013, 1.2% in FY2012, 9.3% in FY2011
- Ujaas Energy has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.3%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 4.1 in FY2015, 1,061 in FY2014, 34.5 in FY2013, 298 in FY2012, 22.9 in FY2011
- The company has business model with average profitability: ROIC is at 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ujaas Energy ($UJAAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 336 | 339 | 2,426 | 5,255 | 1,111 | -78.9% |
| EBITDA | 31 | 4 | 455 | 915 | 423 | -53.7% |
| Net Income | 7 | 9 | 270 | 374 | 117 | -68.6% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 268 | 654 | 160 | -75.6% |
| Short Term Debt | 77 | 91 | 51 | 203 | 106 | -48.1% |
| Long Term Debt | 29 | 195 | 211 | 1,112 | 994 | -10.6% |
Cash flow
|
|---|
| Capex | 23 | 298 | 35 | 1,061 | 4 | -99.6% |
Ratios
|
|---|
| Revenue growth | -71.9% | 1.1% | 614.7% | 116.7% | -78.9% | |
| EBITDA growth | -9.1% | -87.5% | 11,488.9% | 101.3% | -53.7% | |
| EBITDA Margin | 9.3% | 1.2% | 18.7% | 17.4% | 38.1% | 20.7% |
| Net Income Margin | 2.2% | 2.7% | 11.1% | 7.1% | 10.6% | 3.5% |
| CAPEX, % of revenue | 6.8% | 87.8% | 1.4% | 20.2% | 0.4% | -19.8% |
| ROIC | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% | -23.5% |
| ROE | 5.5% | 1.5% | 22.8% | 25.5% | 7.0% | -18.6% |
| Net Debt/EBITDA | 3.3x | 72.6x | -0.0x | 0.7x | 2.2x | 1.5x |
Revenue and profitability
Ujaas Energy's Revenue dropped on 78.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 20.7 pp from 17.4% to 38.1% in FY2015.
Net Income marign increased on 3.5 pp from 7.1% to 10.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.36% in FY2015. CAPEX/Revenue dropped on 87.5 pp from 87.8% in FY2012 to 0.36% in FY2015. It's average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at low ROIC (10.22%) and ROE (6.99%). ROIC dropped on 23.5 pp from 33.7% to 10.2% in FY2015. ROE dropped on 18.6 pp from 25.5% to 7.0% in FY2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA jumped on 1.5x from 0.7x to 2.2x in FY2015. Debt dropped on 16.4% in FY2015 while cash dropped on 75.6% in FY2015.
Valuation
The company's trades at EV/EBITDA 9.6x and P/E 26.7x while industy averages are 10.5x and 26.1x. Ujaas Energy's EV/(EBITDA-CAPEX) is 9.7x with the industry average at 4.7x.
Appendix 1: Peers in Heavy Electrical Equipment
Below we provide Ujaas Energy benchmarking against other companies in Heavy Electrical 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 |
|---|
| 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% | |
| Suzlon Energy ($SUZLON) | -13.3% | 17.9% | -11.1% | 7.8% | |
| |
|---|
| Median (15 companies) | -13.3% | 13.7% | -9.8% | 1.7% | 18.5% |
|---|
| Ujaas Energy ($UJAAS) | | 1.1% | 614.7% | 116.7% | -78.9% |
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 ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | |
| Bgr Energy Systems ($BGRENERGY) | 12.4% | 14.1% | 14.6% | 12.2% | |
| Bharat Heavy Electricals ($BHEL) | 20.6% | 21.0% | 19.7% | 11.8% | |
| Emco ($EMCO) | -1.0% | 7.4% | 9.5% | 11.3% | |
| |
|---|
| Median (15 companies) | 12.5% | 9.4% | 8.8% | 6.6% | 7.1% |
|---|
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | 38.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | |
| T D Power Systems ($TDPOWERSYS) | 1.5% | 3.7% | 14.5% | 15.1% | 3.8% |
| 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) | 5.2% | 5.1% | 3.6% | 2.3% | 3.1% |
|---|
| Ujaas Energy ($UJAAS) | 6.8% | 87.8% | 1.4% | 20.2% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom India ($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 ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | |
| Jyoti Structures ($JYOTISTRUC) | 26.3% | 25.2% | 16.3% | 9.5% | |
| |
|---|
| Median (17 companies) | 19.5% | 15.3% | 6.3% | 8.3% | 4.9% |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($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) | 1.0x | 1.5x | 3.0x | 2.5x | -2.1x |
|---|
| Ujaas Energy ($UJAAS) | 3.3x | 72.6x | -0.0x | 0.7x | 2.2x |
