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Nitin Fire Protection Industries Debt jumped on 27.9% in 2015 and Net Debt / EBITDA jumped on 0.7x from 3.0x to 3.7x

25-05-2015 • About Nitin Fire Protection Industries ($NITINFIRE) • By InTwits

Nitin Fire Protection Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is declining: 10.4% in FY2015 vs. 11.6% in FY2014 vs. 15.6% in FY2011
  • Nitin Fire Protection Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 4.8%.
  • CAPEX is quite volatile: 270 in FY2015, 260 in FY2014, 345 in FY2013, 161 in FY2012, 554 in FY2011
  • The company has highly profitable business model: ROIC is at 12.1%
  • It operates with high leverage: Net Debt/EBITDA is 3.7x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Nitin Fire Protection Industries ($NITINFIRE) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue4,3825,3607,04710,16111,40312.2%
EBITDA6827618731,1761,1860.9%
Net Income5344405706656710.9%
Balance Sheet
Cash6920649436761066.2%
Short Term Debt1,4562,9273,5293,9244,73120.6%
Long Term Debt010288258,216.1%
Cash flow
Capex5541613452602703.5%
Ratios
Revenue growth-67.4%22.3%31.5%44.2%12.2%
EBITDA growth17.2%11.7%14.6%34.7%0.9%
EBITDA Margin15.6%14.2%12.4%11.6%10.4%-1.2%
Net Income Margin12.2%8.2%8.1%6.5%5.9%-0.7%
CAPEX, % of revenue12.6%3.0%4.9%2.6%2.4%-0.2%
ROIC13.2%14.7%12.1%-2.6%
ROE25.9%17.8%19.5%19.3%16.6%-2.7%
Net Debt/EBITDA2.0x3.6x3.5x3.0x3.7x0.7x

Revenue and profitability


Nitin Fire Protection Industries's Revenue surged on 12.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.79 pp from 9.1% to 9.9% in FY2015.

Net Income marign decreased slightly on 0.66 pp from 6.5% to 5.9% in FY2015.

Capital expenditures (CAPEX) and working capital investments


The company's CAPEX/Revenue was 2.4% in FY2015. CAPEX/Revenue decreased slightly on 0.64 pp from 3.0% in FY2012 to 2.4% in FY2015. For the last three years the average CAPEX/Revenue was 3.3%.

Return on investment


The company operates at good ROIC (12.07%) and ROE (16.60%). ROIC decreased on 2.6 pp from 14.7% to 12.1% in FY2015. ROE decreased on 2.7 pp from 19.3% to 16.6% in FY2015.

Leverage (Debt)


Debt level is 3.7x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA surged on 0.7x from 3.0x to 3.7x in FY2015. Debt jumped on 27.9% in FY2015 while cash surged on 66.2% in FY2015.

Valuation


The company's trades at EV/EBITDA 11.7x and P/E 14.1x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 15.1x with the industry average at 4.7x.

Appendix 1: Peers in Industrial Machinery


Below you can find Nitin Fire Protection Industries benchmarking vs. other companies in Industrial Machinery 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
Forbes & Company ($FORBESCO)-66.3%22.4%13.0%53.4%
Gmm Pfaudler ($GMM)-26.1%47.8%31.0%10.3%
Kabra Extrusiontechnik ($KABRAEXTRU)-32.6%-13.3%-8.7%28.4%
Veejay Lakshmi Engineering Works ($VJLAXMIE)27.9%-28.8%5.7%26.6%
Lloyd Electric & Engineering ($LLOYDELENG)24.2%32.2%9.9%20.5%
 
Median (26 companies)-7.1%14.1%2.1%0.9%6.8%
Nitin Fire Protection Industries ($NITINFIRE)22.3%31.5%44.2%12.2%


Top companies by Gross margin, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bell Agromachina ($BELAGRO)0.0%0.0%0.0%0.0%
 
Median (1 company)0.0%0.0%0.0%0.0%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Texmaco Infrastructure & Holdings ($TEXINFRA)40.5%
Dhp India ($DHPIND)26.3%
Solitaire Machine Tools ($SOLIMAC)19.4%
Wendt (India) ($WENDT)30.8%28.3%21.6%18.6%19.0%
Goldstone Infratech ($GOLDINFRA)18.1%
 
Median (21 companies)13.5%10.7%9.4%10.0%11.1%
Nitin Fire Protection Industries ($NITINFIRE)15.6%14.2%12.4%11.6%10.4%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Lokesh Machines ($LOKESHMACH)18.5%22.1%12.9%
Elgi Equipments ($ELGIEQUIP)2.8%4.0%24.0%9.8%
Wendt (India) ($WENDT)7.2%13.5%9.0%8.8%9.4%
Ksb Pumps ($KSBPUMPS)3.3%7.5%3.5%5.0%
Honda Siel Power Products ($HONDAPOWER)4.3%6.7%8.0%3.7%4.3%
 
Median (19 companies)3.4%5.8%3.7%3.0%4.6%
Nitin Fire Protection Industries ($NITINFIRE)12.6%3.0%4.9%2.6%2.4%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Rexnord Electronics & Controls ($REXNORD)10.4%18.8%
Gmm Pfaudler ($GMM)14.2%-76.2%6.8%17.4%18.2%
Greaves Cotton ($GREAVESCOT)24.8%16.3%26.7%
Lakshmi Machine Works ($LAXMIMACH)16.8%18.0%11.7%16.2%17.6%
Wendt (India) ($WENDT)38.2%20.2%16.2%15.1%
 
Median (51 companies)15.0%12.8%10.2%9.2%13.1%
Nitin Fire Protection Industries ($NITINFIRE)13.2%14.7%12.1%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Chemtech Industrial Valves ($CHEMTECH)7.7x6.4x5.3x8.8x
Forbes & Company ($FORBESCO)3.5x2.2x3.3x4.7x
Lokesh Machines ($LOKESHMACH)4.0x3.7x3.3x4.6x
Elecon Engineering Co ($ELECON)3.1x3.0x3.2x4.0x3.1x
Lloyd Electric & Engineering ($LLOYDELENG)4.0x3.2x3.0x3.7x
 
Median (34 companies)1.1x0.6x1.5x0.0x0.0x
Nitin Fire Protection Industries ($NITINFIRE)2.0x3.6x3.5x3.0x3.7x


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