Munjal Showa EBITDA surged on 17.0% in 2015 and Revenue increased on 2.8%
22-05-2015 • About Munjal Showa (
$MUNJALSHOW) • By InTwits
Munjal Showa reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.7% in FY2015 vs. 6.8% in FY2014 vs. 6.9% in FY2011
- Munjal Showa has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 1,614 in FY2015, 1,679 in FY2014, 999 in FY2013, 1,445 in FY2012, 624 in FY2011
- The company has highly profitable business model: ROIC is at 24.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Munjal Showa ($MUNJALSHOW) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,667 | 15,300 | 15,814 | 15,980 | 16,430 | 2.8% |
| EBITDA | 874 | 1,251 | 1,097 | 1,083 | 1,267 | 17.0% |
| Net Income | 340 | 671 | 607 | 697 | 756 | 8.5% |
Balance Sheet
|
|---|
| Cash | 28 | 44 | 175 | 151 | 11 | -92.9% |
| Short Term Debt | 338 | 524 | 213 | 0 | 0 | |
| Long Term Debt | 519 | 211 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 304 | 214 | 176 | 135 | 161 | 18.6% |
Ratios
|
|---|
| Revenue growth | -34.7% | 20.8% | 3.4% | 1.0% | 2.8% | |
| EBITDA growth | 24.7% | 43.2% | -12.3% | -1.3% | 17.0% | |
| EBITDA Margin | 6.9% | 8.2% | 6.9% | 6.8% | 7.7% | 0.9% |
| Net Income Margin | 2.7% | 4.4% | 3.8% | 4.4% | 4.6% | 0.2% |
| CAPEX, % of revenue | 2.4% | 1.4% | 1.1% | 0.8% | 1.0% | 0.1% |
| ROIC | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% | 2.3% |
| ROE | 17.7% | 29.2% | 21.7% | 21.2% | 19.7% | -1.4% |
| Net Debt/EBITDA | 0.9x | 0.6x | 0.0x | -0.1x | -0.0x | 0.1x |
Revenue and profitability
Munjal Showa's Revenue increased on 2.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 20.4 pp from 58.3% to 78.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Munjal Showa's CAPEX/Revenue was 0.98% in FY2015. Munjal Showa showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.98%.
Return on investment
The company operates at high and attractive ROIC (24.89%) while ROE is a bit lower (19.72%). ROIC increased on 2.3 pp from 22.5% to 24.9% in FY2015. ROE decreased slightly on 1.4 pp from 21.2% to 19.7% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 92.9% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Munjal Showa benchmarking vs. other companies in Auto Parts & 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 |
|---|
| 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.3% | 16.9% | 2.4% | 5.0% | 8.2% |
|---|
| Munjal Showa ($MUNJALSHOW) | | 20.8% | 3.4% | 1.0% | 2.8% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.9% | 10.8% | 11.4% |
|---|
| Munjal Showa ($MUNJALSHOW) | 6.9% | 8.2% | 6.9% | 6.8% | 7.7% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.7% | 5.2% | 5.2% |
|---|
| Munjal Showa ($MUNJALSHOW) | 2.4% | 1.4% | 1.1% | 0.8% | 1.0% |
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 Auto Industries ($MUNJALAU) | 26.3% | 30.6% | 21.5% | 21.1% | |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 12.5% |
|---|
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.8x | 1.1x |
|---|
| Munjal Showa ($MUNJALSHOW) | 0.9x | 0.6x | 0.0x | -0.1x | -0.0x |
