Talbros Automotive Components Net Income dropped on 26.9% in 2015 and EBITDA Margin showed almost no change
22-05-2015 • About Talbros Automotive Components (
$TALBROAUTO) • By InTwits
Talbros Automotive Components reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 10.3% in FY2015 vs. 10.2% in FY2014 vs. 11.0% in FY2011
- The company has highly profitable business model: ROIC is at 12.1%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Talbros Automotive Components ($TALBROAUTO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,193 | 3,730 | 3,413 | 3,660 | 3,888 | 6.2% |
| EBITDA | 352 | 415 | 391 | 375 | 401 | 7.1% |
| Net Income | 126 | 144 | 139 | 193 | 141 | -26.9% |
Balance Sheet
|
|---|
| Cash | 42 | 64 | 80 | 66 | 102 | 54.5% |
| Short Term Debt | 741 | 829 | 757 | 935 | 851 | -9.1% |
| Long Term Debt | 342 | 327 | 257 | 309 | 318 | 2.7% |
Cash flow
|
|---|
| Capex | 102 | 121 | | 201 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -30.5% | 16.8% | -8.5% | 7.2% | 6.2% | |
| EBITDA growth | 32.6% | 17.9% | -5.7% | -4.2% | 7.1% | |
| EBITDA Margin | 11.0% | 11.1% | 11.5% | 10.2% | 10.3% | 0.1% |
| Net Income Margin | 3.9% | 3.9% | 4.1% | 5.3% | 3.6% | -1.6% |
| CAPEX, % of revenue | 3.2% | 3.2% | | 5.5% | | -5.5% |
| ROIC | 11.7% | 14.6% | 13.5% | 11.6% | 12.1% | 0.4% |
| ROE | 15.1% | 16.5% | 14.3% | 17.1% | 11.5% | -5.6% |
| Net Debt/EBITDA | 3.0x | 2.6x | 2.4x | 3.1x | 2.7x | -0.5x |
Revenue and profitability
The company's Revenue increased on 6.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.9 pp from 3.3% to 8.2% in FY2015.
Net Income marign decreased slightly on 1.6 pp from 5.3% to 3.6% in FY2015.
Return on investment
The company operates at good ROIC (12.09%) while ROE is low (11.46%). ROIC showed almost no change in FY2015. ROE decreased on 5.6 pp from 17.1% to 11.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 0.5x from 3.1x to 2.7x in FY2015. Debt decreased on 6.1% in FY2015 while cash surged on 54.5% in FY2015.
Valuation
Talbros Automotive Components's trades at EV/EBITDA 6.9x and P/E 12.0x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Talbros Automotive Components 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.3% | 17.2% | 2.7% | 4.9% | 8.2% |
|---|
| Talbros Automotive Components ($TALBROAUTO) | | 16.8% | -8.5% | 7.2% | 6.2% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.7% | 11.4% |
|---|
| Talbros Automotive Components ($TALBROAUTO) | 11.0% | 11.1% | 11.5% | 10.2% | 10.3% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.6% | 4.8% | 5.1% |
|---|
| Talbros Automotive Components ($TALBROAUTO) | 3.2% | 3.2% | | 5.5% | |
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 Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
| |
|---|
| Median (48 companies) | 16.5% | 16.4% | 11.8% | 14.5% | 14.6% |
|---|
| Talbros Automotive Components ($TALBROAUTO) | 11.7% | 14.6% | 13.5% | 11.6% | 12.1% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.0x |
|---|
| Talbros Automotive Components ($TALBROAUTO) | 3.0x | 2.6x | 2.4x | 3.1x | 2.7x |
