Banco Products (India) EBITDA dropped on 38.0% in 2015 and Revenue decreased on 2.8%
25-05-2015 • About Banco Products (India) (
$BANCOINDIA) • By InTwits
Banco Products (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco Products (India) is a company in decline: FY2015 revenue growth was -2.8%, 5 years revenue CAGR was -3.5%
- Banco Products (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 5.4%.
- CAPEX is quite volatile: 243 in FY2015, 473 in FY2014, 420 in FY2013, 599 in FY2012, 885 in FY2011
- The company has business model with low profitability: ROIC is at 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Banco Products (India) ($BANCOINDIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,597 | 10,189 | 10,241 | 11,440 | 11,116 | -2.8% |
| EBITDA | 1,108 | 1,243 | 1,191 | 1,649 | 1,023 | -38.0% |
| Net Income | 656 | 765 | 613 | 898 | 877 | -2.4% |
Balance Sheet
|
|---|
| Cash | 228 | 288 | 186 | 205 | 360 | 75.9% |
| Short Term Debt | 1,273 | 822 | 1,621 | 1,440 | 278 | -80.7% |
| Long Term Debt | 1 | 649 | 518 | 283 | 78 | -72.5% |
Cash flow
|
|---|
| Capex | 885 | 599 | 420 | 473 | 243 | -48.5% |
Ratios
|
|---|
| Revenue growth | -35.3% | 18.5% | 0.5% | 11.7% | -2.8% | |
| EBITDA growth | 7.4% | 12.1% | -4.1% | 38.5% | -38.0% | |
| EBITDA Margin | 12.9% | 12.2% | 11.6% | 14.4% | 9.2% | -5.2% |
| Net Income Margin | 7.6% | 7.5% | 6.0% | 7.9% | 7.9% | 0.0% |
| CAPEX, % of revenue | 10.3% | 5.9% | 4.1% | 4.1% | 2.2% | -1.9% |
| ROIC | 19.9% | 19.1% | 13.9% | 18.3% | 10.0% | -8.4% |
| ROE | 19.8% | 19.7% | 13.7% | 16.9% | 14.5% | -2.4% |
| Net Debt/EBITDA | 0.9x | 1.0x | 1.6x | 0.9x | -0.0x | -0.9x |
Revenue and profitability
The company's Revenue decreased on 2.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.2 pp from 14.4% to 9.2% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Banco Products (India)'s CAPEX/Revenue was 2.2% in FY2015. Banco Products (India)'s CAPEX/Revenue decreased on 3.7 pp from 5.9% in FY2012 to 2.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at good ROE (14.51%) while ROIC is low (9.96%). ROIC decreased on 8.4 pp from 18.3% to 10.0% in FY2015. ROE decreased on 2.4 pp from 16.9% to 14.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.0x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.9x from 0.9x to -0.0042x in FY2015. Debt dropped on 79.3% in FY2015 while cash surged on 75.9% in FY2015.
Valuation
Banco Products (India)'s trades at EV/EBITDA 8.3x and P/E 9.7x while industy averages are 10.5x and 26.1x. Banco Products (India)'s EV/(EBITDA-CAPEX) is 10.9x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Banco Products (India) benchmarking against other companies in Auto Parts & Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -29.1% | 16.9% | 2.7% | 4.9% | 8.3% |
|---|
| Banco Products (India) ($BANCOINDIA) | | 18.5% | 0.5% | 11.7% | -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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.1% | 10.5% |
|---|
| Banco Products (India) ($BANCOINDIA) | 12.9% | 12.2% | 11.6% | 14.4% | 9.2% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 7.6% | 5.6% | 4.7% | 5.2% | 4.5% |
|---|
| Banco Products (India) ($BANCOINDIA) | 10.3% | 5.9% | 4.1% | 4.1% | 2.2% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 12.4% |
|---|
| Banco Products (India) ($BANCOINDIA) | 19.9% | 19.1% | 13.9% | 18.3% | 10.0% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.7x | 1.1x |
|---|
| Banco Products (India) ($BANCOINDIA) | 0.9x | 1.0x | 1.6x | 0.9x | -0.0x |
