Enkei Wheels (India) reports 79.3% EBITDA growth and 21.6% Revenue growth
25-05-2015 • About Enkei Wheels (India) (
$ENKEIWHEL) • By InTwits
Enkei Wheels (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has business model with low profitability: ROIC is at 8.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.9x while industry average is 1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Enkei Wheels (India) ($ENKEIWHEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,389 | 2,792 | 2,828 | 3,158 | 3,839 | 21.6% |
| EBITDA | 190 | 199 | 178 | 212 | 380 | 79.3% |
| Net Income | 3 | -53 | 44 | 5 | 23 | 330.7% |
Balance Sheet
|
|---|
| Cash | 289 | 606 | 485 | 269 | 85 | -68.5% |
| Short Term Debt | 454 | 679 | 270 | 230 | 177 | -23.2% |
| Long Term Debt | 647 | 677 | 857 | 864 | 625 | -27.6% |
Cash flow
|
|---|
| Capex | 429 | 278 | | | 108 | |
Ratios
|
|---|
| Revenue growth | -46.8% | 16.9% | 1.3% | 11.7% | 21.6% | |
| EBITDA growth | | 4.5% | -10.6% | 19.4% | 79.3% | |
| EBITDA Margin | 8.0% | 7.1% | 6.3% | 6.7% | 9.9% | 3.2% |
| Net Income Margin | 0.1% | -1.9% | 1.5% | 0.2% | 0.6% | 0.4% |
| CAPEX, % of revenue | 18.0% | 10.0% | | | 2.8% | 2.8% |
| ROIC | | 3.9% | 1.3% | -1.9% | 8.8% | 10.7% |
| ROE | | | 54.3% | 3.8% | 13.3% | 9.5% |
| Net Debt/EBITDA | 4.3x | 3.8x | 3.6x | 3.9x | 1.9x | -2.0x |
Revenue and profitability
The company's Revenue jumped on 21.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.1 pp from 17.0% to 2.9% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in FY2015. Enkei Wheels (India)'s CAPEX/Revenue decreased on 7.2 pp from 10.0% in FY2012 to 2.8% in FY2015.
Return on investment
The company operates at good ROE (13.29%) while ROIC is low (8.80%). ROIC jumped on 10.7 pp from -1.9% to 8.8% in FY2015. ROE increased on 9.5 pp from 3.8% to 13.3% in FY2015.
Leverage (Debt)
Debt level is 1.9x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from 3.9x to 1.9x in FY2015. Debt dropped on 26.7% in FY2015 while cash dropped on 68.5% in FY2015.
Valuation
Enkei Wheels (India)'s trades at EV/EBITDA 6.1x and P/E 70.9x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Enkei Wheels (India) 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -29.1% | 17.2% | 2.7% | 4.9% | 7.2% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | | 16.9% | 1.3% | 11.7% | 21.6% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.9% | 10.8% | 10.5% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 8.0% | 7.1% | 6.3% | 6.7% | 9.9% |
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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (25 companies) | 7.6% | 5.6% | 4.6% | 4.9% | 4.5% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($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) | 15.9% | 16.4% | 12.7% | 14.5% | 12.4% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | | 3.9% | 1.3% | -1.9% | 8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($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 | 0.7x |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 4.3x | 3.8x | 3.6x | 3.9x | 1.9x |
