Transport Corporation Of India reports 77.7% CAPEX growth and 8.5% Revenue growth
25-05-2015 • About Transport Corporation Of India (
$TCI) • By InTwits
Transport Corporation Of India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 8.2% in FY2015 vs. 7.7% in FY2014 vs. 7.7% in FY2011
- Transport Corporation Of India has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 2.4%.
- CAPEX is quite volatile: 287 in FY2015, 1,033 in FY2014, 419 in FY2013, 226 in FY2012, 196 in FY2011
- The company has highly profitable business model: ROIC is at 15.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Transport Corporation Of India ($TCI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18,513 | 19,537 | 21,305 | 22,265 | 24,167 | 8.5% |
| Gross Profit | 18,487 | | | | | |
| EBITDA | 1,423 | 1,606 | 1,775 | 1,718 | 1,974 | 14.9% |
| Net Income | 501 | 595 | 695 | 716 | 814 | 13.6% |
Balance Sheet
|
|---|
| Cash | 183 | 17 | 8 | 420 | 412 | -1.9% |
| Short Term Debt | 0 | 2,571 | 2,871 | 2,937 | 2,419 | -17.6% |
| Long Term Debt | 3,147 | 839 | 674 | 418 | 778 | 86.3% |
Cash flow
|
|---|
| Capex | 876 | 1,151 | 656 | 801 | 1,423 | 77.7% |
Ratios
|
|---|
| Revenue growth | -38.1% | 5.5% | 9.0% | 4.5% | 8.5% | |
| EBITDA growth | 20.5% | 12.8% | 10.6% | -3.2% | 14.9% | |
| Gross Margin | 99.9% | | | | | 0.0% |
| EBITDA Margin | 7.7% | 8.2% | 8.3% | 7.7% | 8.2% | 0.4% |
| Net Income Margin | 2.7% | 3.0% | 3.3% | 3.2% | 3.4% | 0.2% |
| CAPEX, % of revenue | 4.7% | 5.9% | 3.1% | 3.6% | 5.9% | 2.3% |
| ROIC | 16.1% | 16.5% | 16.2% | 14.4% | 15.0% | 0.6% |
| ROE | 15.2% | 16.9% | 17.1% | 15.4% | 14.6% | -0.8% |
| Net Debt/EBITDA | 2.1x | 2.1x | 2.0x | 1.7x | 1.4x | -0.3x |
Revenue and profitability
The company's Revenue increased on 8.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 6.7% to 2.5% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.9% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 4.2%.Transport Corporation Of India maintained rich investment policy and has spent a big chunk of EBITDA (72.1%) to CAPEX.
Return on investment
The company operates at good ROIC (14.98%) and ROE (14.64%). ROIC increased slightly on 0.62 pp from 14.4% to 15.0% in FY2015. ROE decreased slightly on 0.79 pp from 15.4% to 14.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.3x from 1.7x to 1.4x in FY2015. Debt decreased on 4.7% in FY2015 while cash decreased slightly on 1.9% in FY2015.
Valuation
The company's trades at EV/EBITDA 7.0x and P/E 13.7x while industy averages are 10.5x and 26.1x. Transport Corporation Of India's EV/(EBITDA-CAPEX) is 25.2x with the industry average at 4.7x.
Appendix 1: Peers in Surface Transportation
Below you can find Transport Corporation Of India benchmarking vs. other companies in Surface Transportation 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Patel Integrated Logistics ($PATINTLOG) | -40.7% | 5.6% | 12.7% | 6.5% | |
| Inter State Oil Carrier ($INTSTOIL) | 21.2% | 7.7% | -13.5% | 1.8% | |
| Chartered Logistics ($CHLOGIST) | -8.8% | 39.5% | -2.6% | -35.6% | |
| |
|---|
| Median (3 companies) | -8.8% | 7.7% | -2.6% | 1.8% | |
|---|
| Transport Corporation Of India ($TCI) | | 5.5% | 9.0% | 4.5% | 8.5% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inter State Oil Carrier ($INTSTOIL) | | 11.7% | 12.0% | 13.5% | |
| Chartered Logistics ($CHLOGIST) | 12.7% | 12.6% | 10.3% | 6.1% | |
| Patel Integrated Logistics ($PATINTLOG) | 3.4% | 3.7% | 3.3% | 3.0% | |
| |
|---|
| Median (3 companies) | 8.0% | 11.7% | 10.3% | 6.1% | |
|---|
| Transport Corporation Of India ($TCI) | 7.7% | 8.2% | 8.3% | 7.7% | 8.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chartered Logistics ($CHLOGIST) | 20.4% | 4.5% | | 0.8% | |
| Patel Integrated Logistics ($PATINTLOG) | 1.6% | 1.6% | | 0.6% | |
| |
|---|
| Median (2 companies) | 11.0% | 3.1% | | 0.7% | |
|---|
| Transport Corporation Of India ($TCI) | 4.7% | 5.9% | 3.1% | 3.6% | 5.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 7.8% | 9.5% | 9.0% | 8.5% | |
| Chartered Logistics ($CHLOGIST) | 19.4% | 17.3% | 10.7% | -0.3% | |
| Balurghat Technologies ($BALTE) | | | | | |
| Coastal Roadways ($COARO) | 9.8% | 8.9% | 4.0% | | |
| Inter State Oil Carrier ($INTSTOIL) | | | -0.8% | | |
| |
|---|
| Median (5 companies) | 9.8% | 9.5% | 6.5% | 4.1% | |
|---|
| Transport Corporation Of India ($TCI) | 16.1% | 16.5% | 16.2% | 14.4% | 15.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chartered Logistics ($CHLOGIST) | 3.2x | 3.0x | 3.4x | 8.5x | |
| Patel Integrated Logistics ($PATINTLOG) | 1.3x | 1.4x | 1.5x | 1.8x | |
| Balurghat Technologies ($BALTE) | | 0.0x | 0.0x | 0.0x | |
| Inter State Oil Carrier ($INTSTOIL) | | 3.4x | 2.3x | 0.0x | |
| |
|---|
| Median (4 companies) | 1.5x | 1.4x | 1.7x | 0.9x | |
|---|
| Transport Corporation Of India ($TCI) | 2.1x | 2.1x | 2.0x | 1.7x | 1.4x |
