Kabra Extrusiontechnik reports 2,015% CAPEX growth and 21.6% Revenue growth
26-05-2015 • About Kabra Extrusiontechnik (
$KABRAEXTRU) • By InTwits
Kabra Extrusiontechnik reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kabra Extrusiontechnik has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 239 in FY2015, 11.3 in FY2014, 31.7 in FY2013, 124 in FY2012, 118 in FY2011
- The company has highly profitable business model: ROIC is at 13.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kabra Extrusiontechnik ($KABRAEXTRU) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,195 | 1,903 | 1,738 | 2,232 | 2,713 | 21.6% |
| EBITDA | 399 | 182 | 164 | 233 | 312 | 33.7% |
| Net Income | 258 | 100 | 109 | 142 | 224 | 57.6% |
Balance Sheet
|
|---|
| Cash | 10 | 16 | 5 | 3 | 4 | 47.0% |
| Short Term Debt | 48 | 109 | 155 | 173 | 210 | 21.1% |
| Long Term Debt | 16 | | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 118 | 124 | 32 | 11 | 239 | 2,014.6% |
Ratios
|
|---|
| Revenue growth | -32.6% | -13.3% | -8.7% | 28.4% | 21.6% | |
| EBITDA growth | 14.9% | -54.3% | -10.1% | 42.2% | 33.7% | |
| EBITDA Margin | 18.2% | 9.6% | 9.4% | 10.5% | 11.5% | 1.0% |
| Net Income Margin | 11.8% | 5.3% | 6.3% | 6.4% | 8.3% | 1.9% |
| CAPEX, % of revenue | 5.4% | 6.5% | 1.8% | 0.5% | 8.8% | 8.3% |
| ROIC | 32.8% | | | 11.9% | 13.9% | 2.0% |
| ROE | 26.6% | 9.1% | 9.3% | 11.4% | 16.5% | 5.1% |
| Net Debt/EBITDA | 0.1x | 0.5x | 0.9x | 0.7x | 0.7x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 21.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from 4.1% to 10.0% in FY2015.
Net Income marign increased slightly on 1.9 pp from 6.4% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.8% in FY2015. The company's CAPEX/Revenue increased on 2.3 pp from 6.5% in FY2012 to 8.8% in FY2015. It's average CAPEX/Revenue for the last three years was 3.7%.The company invested a big chunk of EBITDA (76.6%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (13.88%) and ROE (16.51%). ROIC increased on 2.0 pp from 11.9% to 13.9% in FY2015. ROE increased on 5.1 pp from 11.4% to 16.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 0.7x. Net Debt / EBITDA decreased on 0.1x from 0.7x to 0.7x in FY2015. Debt jumped on 21.1% in FY2015 while cash surged on 47.0% in FY2015.
Valuation
Kabra Extrusiontechnik's trades at EV/EBITDA 7.5x and P/E 9.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 32.2x with the industry average at 4.7x.
Appendix 1: Peers in Industrial Machinery
Below we provide Kabra Extrusiontechnik benchmarking against other companies in Industrial Machinery 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 |
|---|
| Forbes & Company ($FORBESCO) | | 22.4% | 13.0% | 53.4% | 15.6% |
| Nitin Fire Protection Industries ($NITINFIRE) | | 22.3% | 31.5% | 44.2% | 12.2% |
| Gmm Pfaudler ($GMM) | | -26.1% | 47.8% | 31.0% | 10.3% |
| Veejay Lakshmi Engineering Works ($VJLAXMIE) | 27.9% | -28.8% | 5.7% | 26.6% | |
| Lloyd Electric & Engineering ($LLOYDELENG) | 24.2% | 32.2% | 9.9% | 20.5% | |
| |
|---|
| Median (26 companies) | 13.8% | 20.1% | 2.3% | 0.9% | 11.3% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | | -13.3% | -8.7% | 28.4% | 21.6% |
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 (25 companies) | 13.5% | 11.2% | 9.6% | 10.1% | 10.4% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 18.2% | 9.6% | 9.4% | 10.5% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lokesh Machines ($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% | 5.5% | 4.1% | 3.0% | 4.3% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 5.4% | 6.5% | 1.8% | 0.5% | 8.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rexnord Electronics & Controls ($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) | 14.6% | 12.8% | 10.7% | 9.2% | 12.5% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 32.8% | | | 11.9% | 13.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chemtech Industrial Valves ($CHEMTECH) | 7.7x | 6.4x | 5.3x | 8.8x | |
| Forbes & Company ($FORBESCO) | 3.5x | 2.2x | 3.3x | 4.7x | 6.3x |
| Lokesh Machines ($LOKESHMACH) | 4.0x | 3.7x | 3.3x | 4.6x | |
| Elecon Engineering Co ($ELECON) | 3.1x | 3.0x | 3.2x | 4.0x | 3.1x |
| Lloyd Electric & Engineering ($LLOYDELENG) | 4.0x | 3.2x | 3.0x | 3.7x | |
| |
|---|
| Median (34 companies) | 1.3x | 1.1x | 1.7x | 0.0x | 0.0x |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 0.1x | 0.5x | 0.9x | 0.7x | 0.7x |
