India Nippon Electricals reports 36.9% EBITDA growth and 24.8% Revenue growth
25-05-2015 • About India Nippon Electricals (
$INDNIPPON) • By InTwits
India Nippon Electricals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- India Nippon Electricals has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 105 in FY2015, 59.8 in FY2014, 84.2 in FY2013, 142 in FY2012, 61.3 in FY2011
- The company has highly profitable business model: ROIC is at 12.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
India Nippon Electricals ($INDNIPPON) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,294 | 2,607 | 2,690 | 2,627 | 3,277 | 24.8% |
| EBITDA | 319 | 365 | 339 | 247 | 338 | 36.9% |
| Net Income | 216 | 295 | 292 | 212 | 231 | 8.7% |
Balance Sheet
|
|---|
| Cash | 73 | 12 | 21 | 15 | 25 | 64.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 61 | 142 | 84 | 60 | 105 | 75.4% |
Ratios
|
|---|
| Revenue growth | -42.5% | 13.6% | 3.2% | -2.4% | 24.8% | |
| EBITDA growth | 38.3% | 14.4% | -7.0% | -27.1% | 36.9% | |
| EBITDA Margin | 13.9% | 14.0% | 12.6% | 9.4% | 10.3% | 0.9% |
| Net Income Margin | 9.4% | 11.3% | 10.9% | 8.1% | 7.0% | -1.0% |
| CAPEX, % of revenue | 2.7% | 5.5% | 3.1% | 2.3% | 3.2% | 0.9% |
| ROIC | 17.3% | 17.7% | 14.3% | 9.1% | 12.0% | 2.9% |
| ROE | 13.5% | 16.7% | 15.0% | 10.2% | 10.6% | 0.4% |
| Net Debt/EBITDA | -0.2x | -0.0x | -0.1x | -0.1x | -0.1x | -0.0x |
Revenue and profitability
India Nippon Electricals's Revenue surged on 24.8% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 9.2% to 10.5% in FY2015.
Net Income marign decreased slightly on 1.0 pp from 8.1% to 7.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 India Nippon Electricals had CAPEX/Revenue of 3.2%. The company's CAPEX/Revenue decreased on 2.3 pp from 5.5% in FY2012 to 3.2% in FY2015. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROIC (12.05%) while ROE is low (10.59%). ROIC increased on 2.9 pp from 9.1% to 12.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 64.8% in FY2015.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find India Nippon Electricals 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -29.1% | 17.2% | 2.4% | 5.0% | 7.2% |
|---|
| India Nippon Electricals ($INDNIPPON) | | 13.6% | 3.2% | -2.4% | 24.8% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.8% | 10.8% | 9.8% | 10.8% | 10.5% |
|---|
| India Nippon Electricals ($INDNIPPON) | 13.9% | 14.0% | 12.6% | 9.4% | 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 ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.7% | 5.2% | 4.5% |
|---|
| India Nippon Electricals ($INDNIPPON) | 2.7% | 5.5% | 3.1% | 2.3% | 3.2% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 14.5% | 12.4% |
|---|
| India Nippon Electricals ($INDNIPPON) | 17.3% | 17.7% | 14.3% | 9.1% | 12.0% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.8x | 1.1x |
|---|
| India Nippon Electricals ($INDNIPPON) | -0.2x | -0.0x | -0.1x | -0.1x | -0.1x |
