Lumax Auto Technologies Net Income surged on 48.9% in 2015 and EBITDA Margin showed almost no change
26-05-2015 • About Lumax Auto Technologies (
$LUMAXTECH) • By InTwits
Lumax Auto Technologies reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 8.0% in FY2015 vs. 7.9% in FY2014 vs. 9.4% in FY2011
- Lumax Auto Technologies has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 318 in FY2015, 593 in FY2014, 557 in FY2013, 384 in FY2012, 231 in FY2011
- The company has highly profitable business model: ROIC is at 15.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lumax Auto Technologies ($LUMAXTECH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,267 | 7,515 | 7,663 | 7,628 | 8,372 | 9.8% |
| EBITDA | 590 | 645 | 671 | 600 | 667 | 11.1% |
| Net Income | 455 | 507 | 411 | 302 | 450 | 48.9% |
Balance Sheet
|
|---|
| Cash | 139 | 89 | 97 | 120 | 154 | 28.0% |
| Short Term Debt | 0 | 0 | 16 | 133 | 136 | 2.1% |
| Long Term Debt | 11 | 14 | 258 | 385 | 271 | -29.6% |
Cash flow
|
|---|
| Capex | 231 | 384 | 557 | 593 | 318 | -46.4% |
Ratios
|
|---|
| Revenue growth | -36.9% | 19.9% | 2.0% | -0.5% | 9.8% | |
| EBITDA growth | 61.6% | 9.5% | 4.0% | -10.6% | 11.1% | |
| EBITDA Margin | 9.4% | 8.6% | 8.8% | 7.9% | 8.0% | 0.1% |
| Net Income Margin | 7.3% | 6.8% | 5.4% | 4.0% | 5.4% | 1.4% |
| CAPEX, % of revenue | 3.7% | 5.1% | 7.3% | 7.8% | 3.8% | -4.0% |
| ROIC | 40.3% | 33.0% | 25.5% | 15.6% | 15.4% | -0.2% |
| ROE | 40.7% | 31.3% | 20.8% | 13.8% | 18.5% | 4.7% |
| Net Debt/EBITDA | -0.2x | -0.1x | 0.3x | 0.7x | 0.4x | -0.3x |
Revenue and profitability
The company's Revenue increased on 9.8% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased slightly on 1.4 pp from 4.0% to 5.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Lumax Auto Technologies had CAPEX/Revenue of 3.8%. Lumax Auto Technologies showed small CAPEX/Revenue decline of 1.3 pp from 5.1% in FY2012 to 3.8% in FY2015. For the last three years the average CAPEX/Revenue was 6.3%.
Return on investment
The company operates at good ROIC (15.38%) and ROE (18.55%). ROIC showed almost no change in FY2015. ROE increased on 4.7 pp from 13.8% to 18.5% in FY2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 0.7x to 0.4x in FY2015. Debt dropped on 21.5% in FY2015 while cash jumped on 28.0% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.5x and P/E 7.6x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 10.6x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Lumax Auto Technologies 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 ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -28.8% | 16.9% | 2.7% | 5.0% | 8.2% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | | 19.9% | 2.0% | -0.5% | 9.8% |
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 ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 11.1% | 9.9% | 10.8% | 10.4% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 9.4% | 8.6% | 8.8% | 7.9% | 8.0% |
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 ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% |
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| Munjal Auto Industries ($MUNJALAU) | 8.4% | 2.5% | 2.0% | 6.7% | |
| |
|---|
| Median (24 companies) | 8.0% | 5.8% | 4.5% | 4.8% | 4.0% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 3.7% | 5.1% | 7.3% | 7.8% | 3.8% |
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 ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 12.3% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 40.3% | 33.0% | 25.5% | 15.6% | 15.4% |
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 ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.8x | 1.0x |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | -0.2x | -0.1x | 0.3x | 0.7x | 0.4x |
