Techno Electric & Engineering Company Net Income surged on 20.1% in 2015 and Revenue jumped on 12.6%
22-05-2015 • About Techno Electric & Engineering Company (
$TECHELE) • By InTwits
Techno Electric & Engineering Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Techno Electric & Engineering Company has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.9%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 10.7 in FY2015, 54.2 in FY2014, 200 in FY2013, 4,034 in FY2012, 2,216 in FY2011
- The company has business model with average profitability: ROIC is at 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Techno Electric & Engineering Company ($TECHELE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,166 | 8,137 | 6,859 | 6,975 | 7,853 | 12.6% |
| EBITDA | 1,669 | 2,196 | 2,370 | 1,989 | 2,081 | 4.7% |
| Net Income | 1,128 | 1,209 | 1,204 | 875 | 1,051 | 20.1% |
Balance Sheet
|
|---|
| Cash | -83 | 75 | 583 | 388 | 213 | -45.1% |
| Short Term Debt | | 1,546 | 1,504 | 614 | 1,682 | 174.1% |
| Long Term Debt | 2,896 | 4,164 | 5,172 | 4,785 | 3,967 | -17.1% |
Cash flow
|
|---|
| Capex | 2,216 | 4,034 | 200 | 54 | 11 | -80.2% |
Ratios
|
|---|
| Revenue growth | -21.1% | 13.6% | -15.7% | 1.7% | 12.6% | |
| EBITDA growth | 13.0% | 31.6% | 7.9% | -16.1% | 4.7% | |
| EBITDA Margin | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% | -2.0% |
| Net Income Margin | 15.7% | 14.9% | 17.5% | 12.5% | 13.4% | 0.8% |
| CAPEX, % of revenue | 30.9% | 49.6% | 2.9% | 0.8% | 0.1% | -0.6% |
| ROIC | 17.4% | 15.5% | 12.6% | 9.3% | 10.2% | 0.9% |
| ROE | 22.0% | 19.6% | 16.7% | 10.9% | 12.0% | 1.1% |
| Net Debt/EBITDA | 1.8x | 2.6x | 2.6x | 2.5x | 2.6x | 0.1x |
Revenue and profitability
The company's Revenue surged on 12.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign increased slightly on 0.84 pp from 12.5% to 13.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Techno Electric & Engineering Company had CAPEX/Revenue of 0.14%. CAPEX/Revenue dropped on 49.4 pp from 49.6% in FY2012 to 0.14% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (10.19%) and ROE (12.00%). ROIC increased slightly on 0.93 pp from 9.3% to 10.2% in FY2015. ROE increased slightly on 1.1 pp from 10.9% to 12.0% in FY2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from 2.5x to 2.6x in FY2015. Debt increased on 4.6% in FY2015 while cash dropped on 45.1% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find Techno Electric & Engineering Company benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| Ujaas Energy ($UJAAS) | | 1.1% | 614.7% | 116.7% | -78.9% |
| Transformers And Rectifiers (India) ($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 ($CROMPGREAV) | 9.5% | 12.4% | 7.5% | 12.7% | |
| |
|---|
| Median (15 companies) | -4.5% | 13.7% | -7.7% | 1.7% | 14.4% |
|---|
| Techno Electric & Engineering Company ($TECHELE) | | 13.6% | -15.7% | 1.7% | 12.6% |
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% | 26.5% |
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | 38.1% |
| Bgr Energy Systems ($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) | 12.4% | 8.9% | 8.8% | 6.6% | 11.6% |
|---|
| Techno Electric & Engineering Company ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | |
| Ujaas Energy ($UJAAS) | 6.8% | 87.8% | 1.4% | 20.2% | 0.4% |
| 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% | |
| |
|---|
| Median (14 companies) | 5.2% | 5.1% | 3.6% | 2.6% | 1.5% |
|---|
| Techno Electric & Engineering Company ($TECHELE) | 30.9% | 49.6% | 2.9% | 0.8% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% |
| 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% | |
| |
|---|
| Median (17 companies) | 19.5% | 14.1% | 6.3% | 8.3% | 7.8% |
|---|
| Techno Electric & Engineering Company ($TECHELE) | 17.4% | 15.5% | 12.6% | 9.3% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($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 | 1.1x |
|---|
| Techno Electric & Engineering Company ($TECHELE) | 1.8x | 2.6x | 2.6x | 2.5x | 2.6x |
