Rane Brake Lining reports 12.7% EBITDA growth and almost no change in EBITDA Margin of 11.0%
22-05-2015 • About Rane Brake Lining (
$RANEBRAKE) • By InTwits
Rane Brake Lining reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rane Brake Lining has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's a lot of higher than industry average of 10.7%.
- CAPEX is quite volatile: 53 in FY2015, 103 in FY2014, 352 in FY2013, 309 in FY2012, 309 in FY2011
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rane Brake Lining ($RANEBRAKE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,058 | 3,592 | 3,764 | 3,841 | 4,164 | 8.4% |
| EBITDA | 345 | 397 | 333 | 407 | 458 | 12.7% |
| Net Income | 153 | 162 | 91 | 172 | 161 | -6.4% |
Balance Sheet
|
|---|
| Cash | 12 | 11 | 23 | 33 | 15 | -55.4% |
| Short Term Debt | 265 | 364 | 446 | 531 | 410 | -22.7% |
| Long Term Debt | 378 | 477 | 453 | 275 | 105 | -61.8% |
Cash flow
|
|---|
| Capex | 309 | 309 | 352 | 103 | 53 | -48.4% |
Ratios
|
|---|
| Revenue growth | -37.9% | 17.4% | 4.8% | 2.0% | 8.4% | |
| EBITDA growth | 15.5% | 15.3% | -16.3% | 22.2% | 12.7% | |
| EBITDA Margin | 11.3% | 11.1% | 8.8% | 10.6% | 11.0% | 0.4% |
| Net Income Margin | 5.0% | 4.5% | 2.4% | 4.5% | 3.9% | -0.6% |
| CAPEX, % of revenue | 10.1% | 8.6% | 9.4% | 2.7% | 1.3% | -1.4% |
| ROIC | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% | 1.7% |
| ROE | 18.8% | 17.7% | 9.2% | 16.1% | 13.8% | -2.3% |
| Net Debt/EBITDA | 1.8x | 2.1x | 2.6x | 1.9x | 1.1x | -0.8x |
Revenue and profitability
The company's Revenue increased on 8.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 28.6 pp from -10.7% to -39.3% in FY2015.
Net Income marign decreased slightly on 0.61 pp from 4.5% to 3.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Rane Brake Lining had CAPEX/Revenue of 1.3%. The company's CAPEX/Revenue decreased on 7.3 pp from 8.6% in FY2012 to 1.3% in FY2015. It's average CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at good ROIC (12.82%) and ROE (13.77%). ROIC increased slightly on 1.7 pp from 11.1% to 12.8% in FY2015. ROE decreased on 2.3 pp from 16.1% to 13.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.8x from 1.9x to 1.1x in FY2015. Debt dropped on 36.0% in FY2015 while cash dropped on 55.4% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.7x and P/E 13.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 6.4x with the industry average at 4.7x.
Appendix 1: Peers in
Below you can find Rane Brake Lining benchmarking vs. other companies in 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 |
|---|
| Bharat Rasayan ($BHARATRA) | -82.3% | 51.3% | 32.1% | 92.7% | |
| Indbulbbph ($INDBULBBPH) | | -3.2% | -6.5% | 33.5% | 49.2% |
| Uplbbph ($UPLBBPH) | | 33.2% | 19.7% | 17.3% | 10.9% |
| Ginni Filaments ($GINNIFIL) | | 2.8% | 4.6% | 16.6% | -2.3% |
| Monetbbph ($MONETBBPH) | -58.7% | 22.3% | 3.7% | 11.6% | |
| |
|---|
| Median (17 companies) | -33.8% | 17.7% | 10.8% | 4.2% | 10.9% |
|---|
| Rane Brake Lining ($RANEBRAKE) | | 17.4% | 4.8% | 2.0% | 8.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paushak ($PAUSHAK) | | | | | 25.6% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 24.7% |
| Indbulbbph ($INDBULBBPH) | 27.9% | 36.7% | 34.6% | 29.5% | 23.5% |
| Uplbbph ($UPLBBPH) | 18.8% | 18.2% | 18.3% | 18.8% | 20.0% |
| Indian Metals & Ferro Alloys ($INDMETA-B) | 33.0% | 20.4% | 21.4% | 23.2% | 17.9% |
| |
|---|
| Median (13 companies) | 14.8% | 15.4% | 13.7% | 14.7% | 10.7% |
|---|
| Rane Brake Lining ($RANEBRAKE) | 11.3% | 11.1% | 8.8% | 10.6% | 11.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jklakbbph ($JKLAKBBPH) | 23.6% | 28.5% | 28.8% | 24.6% | 23.6% |
| Rilbbph ($RILBBPH) | 12.7% | 4.6% | 7.7% | 13.8% | 16.9% |
| Gkw ($GKW) | | | | | 15.5% |
| Paushak ($PAUSHAK) | | | | | 12.3% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 8.8% |
| |
|---|
| Median (11 companies) | 5.0% | 8.9% | 5.2% | 4.1% | 6.2% |
|---|
| Rane Brake Lining ($RANEBRAKE) | 10.1% | 8.6% | 9.4% | 2.7% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaleconbbph ($KALECONBBPH) | | | 89.0% | 103.8% | |
| Madras Fertilizers ($MADRASFERT) | 52.6% | 44.7% | 18.0% | 23.9% | |
| Bharat Rasayan ($BHARATRA) | 10.0% | 22.1% | 13.7% | 21.9% | |
| Ginni Filaments ($GINNIFIL) | 11.6% | -1.0% | 15.2% | 21.6% | 12.8% |
| Uplbbph ($UPLBBPH) | 16.3% | 17.1% | 15.9% | 18.2% | 22.1% |
| |
|---|
| Median (28 companies) | 10.1% | 8.4% | 5.8% | 5.3% | 4.9% |
|---|
| Rane Brake Lining ($RANEBRAKE) | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 5.3x | 9.8x | 16.3x | 27.4x | |
| Asleyf ($ASLEYF) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Indbulbbph ($INDBULBBPH) | 8.5x | 4.3x | 4.8x | 5.5x | 9.6x |
| Jklakbbph ($JKLAKBBPH) | 3.0x | 2.1x | 2.3x | 5.3x | 5.5x |
| Madras Fertilizers ($MADRASFERT) | 5.5x | 3.5x | 6.5x | 5.0x | |
| |
|---|
| Median (16 companies) | 1.8x | 2.1x | 2.2x | 2.7x | 3.9x |
|---|
| Rane Brake Lining ($RANEBRAKE) | 1.8x | 2.1x | 2.6x | 1.9x | 1.1x |
