Sanghvi Movers reports 433% CAPEX growth and 26.6% Revenue growth
22-05-2015 • About Sanghvi Movers (
$SANGHVIMOV) • By InTwits
Sanghvi Movers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sanghvi Movers has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.2%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 507 in FY2015, 95.1 in FY2014, 93.8 in FY2013, 2,313 in FY2012, 3,300 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sanghvi Movers ($SANGHVIMOV) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,612 | 4,505 | 3,321 | 2,417 | 3,060 | 26.6% |
| EBITDA | 2,559 | 3,157 | 2,318 | 1,400 | 1,785 | 27.5% |
| Net Income | 863 | 1,018 | 409 | -145 | 81 | |
Balance Sheet
|
|---|
| Cash | 56 | 62 | 187 | 45 | 278 | 518.4% |
| Short Term Debt | 3,932 | 3,905 | 2,088 | 2,019 | 629 | -68.9% |
| Long Term Debt | 2,460 | 3,097 | 3,827 | 2,629 | 2,711 | 3.1% |
Cash flow
|
|---|
| Capex | 3,300 | 2,313 | 94 | 95 | 507 | 433.3% |
Ratios
|
|---|
| Revenue growth | -1.1% | 24.7% | -26.3% | -27.2% | 26.6% | |
| EBITDA growth | 1.2% | 23.4% | -26.6% | -39.6% | 27.5% | |
| EBITDA Margin | 70.8% | 70.1% | 69.8% | 57.9% | 58.3% | 0.4% |
| Net Income Margin | 23.9% | 22.6% | 12.3% | -6.0% | 2.6% | 8.6% |
| CAPEX, % of revenue | 91.4% | 51.3% | 2.8% | 3.9% | 16.6% | 12.6% |
| ROIC | 14.3% | 15.3% | 8.1% | 1.7% | 5.0% | 3.4% |
| ROE | 17.1% | 17.4% | 6.3% | -2.2% | 1.2% | 3.4% |
| Net Debt/EBITDA | 2.5x | 2.2x | 2.5x | 3.3x | 1.7x | -1.6x |
Revenue and profitability
Sanghvi Movers's Revenue surged on 26.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 16.0 pp from -6.3% to 9.7% in FY2015.
Net Income marign increased on 8.6 pp from -6.0% to 2.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Sanghvi Movers had CAPEX/Revenue of 16.6%. The company showed big decline in CAPEX/Revenue of 34.8 pp from 51.3% in FY2012 to 16.6% in FY2015. Average CAPEX/Revenue for the last three years was 7.8%.
Return on investment
The company operates at low ROIC (5.02%) and ROE (1.24%). ROIC increased on 3.4 pp from 1.7% to 5.0% in FY2015. ROE increased on 3.4 pp from -2.2% to 1.2% in FY2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 1.6x from 3.3x to 1.7x in FY2015. Debt dropped on 28.2% in FY2015 while cash jumped on 518% in FY2015.
Appendix 1: Peers in Transport Related Services
Below you can find Sanghvi Movers benchmarking vs. other companies in Transport Related Services 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 |
|---|
| Container Corporation Of India ($CONCOR) | -48.3% | 5.2% | 8.4% | 19.6% | |
| Til ($TIL) | -21.7% | 0.4% | -15.1% | 11.8% | |
| Action Construction Equipment ($ACE) | -5.1% | 22.2% | -22.1% | -7.8% | |
| |
|---|
| Median (3 companies) | -21.7% | 5.2% | -15.1% | 11.8% | |
|---|
| Sanghvi Movers ($SANGHVIMOV) | | 24.7% | -26.3% | -27.2% | 26.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Container Corporation Of India ($CONCOR) | 26.1% | 24.9% | 23.6% | 22.5% | |
| Til ($TIL) | 9.0% | 5.4% | 7.0% | 8.2% | |
| Action Construction Equipment ($ACE) | 8.5% | 6.5% | 5.6% | 4.1% | |
| |
|---|
| Median (3 companies) | 9.0% | 6.5% | 7.0% | 8.2% | |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 70.8% | 70.1% | 69.8% | 57.9% | 58.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Container Corporation Of India ($CONCOR) | 8.1% | 5.6% | 13.3% | 9.3% | |
| Action Construction Equipment ($ACE) | 4.8% | 8.8% | 6.5% | 4.6% | |
| Til ($TIL) | 6.0% | 11.7% | 5.6% | 2.7% | |
| |
|---|
| Median (3 companies) | 6.0% | 8.8% | 6.5% | 4.6% | |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 91.4% | 51.3% | 2.8% | 3.9% | 16.6% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Container Corporation Of India ($CONCOR) | 17.8% | 15.5% | 14.1% | 14.2% | |
| Til ($TIL) | 17.8% | 6.8% | 5.7% | 7.7% | |
| Action Construction Equipment ($ACE) | 18.9% | 10.9% | 5.2% | 2.2% | |
| Kernex Microsystems (India) ($KERNEX) | 6.0% | 5.7% | | | |
| |
|---|
| Median (4 companies) | 17.8% | 8.8% | 5.7% | 7.7% | |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 14.3% | 15.3% | 8.1% | 1.7% | 5.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Construction Equipment ($ACE) | 0.8x | 2.6x | 4.2x | 5.6x | |
| Til ($TIL) | 1.4x | 4.6x | 5.8x | 5.1x | |
| Container Corporation Of India ($CONCOR) | -0.0x | -0.8x | -1.0x | -2.2x | |
| |
|---|
| Median (3 companies) | 1.1x | 2.3x | 2.1x | 5.1x | |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 2.5x | 2.2x | 2.5x | 3.3x | 1.7x |
