Sharp India revenue surged on 22.2% in 2015 and EBITDA Margin decreased slightly on 0.60 pp from 6.3% to 5.7%
26-05-2015 • About Sharp India (
$SHARP) • By InTwits
Sharp India reported FY2015 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sharp India ($SHARP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,118 | 838 | 776 | 1,543 | 1,885 | 22.2% |
| EBITDA | 45 | 60 | 37 | 97 | 107 | 10.4% |
| Net Income | 8 | -5 | -13 | 28 | 16 | -43.6% |
Balance Sheet
|
|---|
| Cash | 54 | 2 | 75 | | 123 | |
| Short Term Debt | 90 | 72 | 0 | | 30 | |
| Long Term Debt | 0 | 0 | 90 | | 158 | |
Cash flow
|
|---|
| Capex | 47 | 67 | | | | |
Ratios
|
|---|
| Revenue growth | -49.0% | -25.1% | -7.4% | 98.9% | 22.2% | |
| EBITDA growth | 30.6% | 33.3% | -38.3% | 160.4% | 10.4% | |
| EBITDA Margin | 4.0% | 7.2% | 4.8% | 6.3% | 5.7% | -0.6% |
| Net Income Margin | 0.7% | -0.6% | -1.7% | 1.8% | 0.8% | -1.0% |
| CAPEX, % of revenue | 4.2% | 8.0% | | | | 0.0% |
| ROIC | 4.6% | 7.9% | -4.1% | | | 0.0% |
| ROE | 3.4% | -2.1% | -5.6% | | | 0.0% |
| Net Debt/EBITDA | 0.8x | 1.2x | 0.4x | 0.0x | 0.6x | 0.6x |
Revenue and profitability
Sharp India's Revenue surged on 22.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 66.7% to 65.1% in FY2015.
Net Income marign decreased slightly on 0.97 pp from 1.8% to 0.83% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 1.8x. Net Debt / EBITDA surged0.6x from 0x to 0.6x in FY2015. Debt surged while cash surged.
Valuation
Sharp India's trades at EV/EBITDA 17.7x and P/E 116.5x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Consumer Electronics
Below we provide Sharp India benchmarking against other companies in Consumer Electronics 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | -60.0% | 4.5% | 16.5% | 18.3% | |
| Whirlpool Of India ($WHIRLPOOL) | | -1.7% | 4.3% | 2.2% | 16.2% |
| Blue Star ($BLUESTARCO) | -22.7% | -5.5% | 3.9% | 1.3% | |
| Mirc Electronics ($MIRCELECTR) | | -13.8% | -21.4% | -0.9% | -17.7% |
| |
|---|
| Median (4 companies) | -41.4% | -3.6% | 4.1% | 1.8% | -0.7% |
|---|
| Sharp India ($SHARP) | | -25.1% | -7.4% | 98.9% | 22.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 10.3% | 8.9% | 8.4% | 7.9% | 10.1% |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 7.7% | 4.3% | 5.4% | 5.6% | |
| Blue Star ($BLUESTARCO) | 8.7% | -0.8% | 3.1% | 5.4% | |
| Mirc Electronics ($MIRCELECTR) | 4.0% | 1.4% | -0.0% | 0.5% | 4.1% |
| |
|---|
| Median (4 companies) | 8.2% | 2.9% | 4.2% | 5.5% | 7.1% |
|---|
| Sharp India ($SHARP) | 4.0% | 7.2% | 4.8% | 6.3% | 5.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 5.1% | 2.1% | 12.0% | 3.8% | |
| Whirlpool Of India ($WHIRLPOOL) | 2.7% | 4.5% | 3.0% | 3.0% | 2.6% |
| Blue Star ($BLUESTARCO) | 1.8% | 1.9% | 1.0% | 1.4% | |
| Mirc Electronics ($MIRCELECTR) | 0.8% | 0.7% | 1.3% | 0.6% | 0.0% |
| |
|---|
| Median (4 companies) | 2.3% | 2.0% | 2.2% | 2.2% | 1.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 43.8% | 34.9% | 27.0% | 21.1% | 29.3% |
| Blue Star ($BLUESTARCO) | | -6.1% | 6.9% | 12.6% | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 16.5% | 6.5% | 9.6% | 8.4% | |
| Mirc Electronics ($MIRCELECTR) | 9.3% | -0.0% | -4.0% | -2.2% | 7.3% |
| Calcom Vision ($CALCOM) | | | -14.3% | | |
| |
|---|
| Median (6 companies) | 13.4% | 6.5% | 5.7% | 10.5% | 18.3% |
|---|
| Sharp India ($SHARP) | 4.6% | 7.9% | -4.1% | | |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mirc Electronics ($MIRCELECTR) | 4.6x | 5.8x | | 45.1x | 4.9x |
| Blue Star ($BLUESTARCO) | 1.6x | | 4.5x | 2.7x | |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 1.5x | 2.0x | 1.4x | 2.0x | |
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.2x | -0.7x | -1.3x | -1.6x |
| |
|---|
| Median (4 companies) | 1.6x | 2.0x | 3.9x | 2.4x | 1.6x |
|---|
| Sharp India ($SHARP) | 0.8x | 1.2x | 0.4x | 0.0x | 0.6x |
