Shreyas Shipping & Logistics reports 1,434% Net Income growth and 4.2 pp EBITDA Margin growth from 9.4% to 13.6%
26-05-2015 • About Shreyas Shipping & Logistics (
$SHREYAS) • By InTwits
Shreyas Shipping & Logistics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shreyas Shipping & Logistics has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.1%. At the same time it's a lot of higher than industry average of 3.4%.
- CAPEX is quite volatile: 617 in FY2015, 63.1 in FY2014, 698 in FY2013, 204 in FY2012, 50.6 in FY2011
- The company has highly profitable business model: ROIC is at 20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shreyas Shipping & Logistics ($SHREYAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,904 | 2,708 | 3,889 | 4,873 | 5,459 | 12.0% |
| EBITDA | 309 | 243 | 418 | 459 | 744 | 61.9% |
| Net Income | 128 | 56 | 154 | -46 | 614 | |
Balance Sheet
|
|---|
| Cash | 18 | 108 | 90 | 176 | 263 | 49.5% |
| Short Term Debt | 48 | 291 | 448 | 528 | 428 | -18.9% |
| Long Term Debt | 564 | 553 | 880 | 683 | 797 | 16.7% |
Cash flow
|
|---|
| Capex | 51 | 204 | 698 | 63 | 617 | 878.3% |
Ratios
|
|---|
| Revenue growth | -71.0% | 42.2% | 43.6% | 25.3% | 12.0% | |
| EBITDA growth | 406.0% | -21.4% | 71.9% | 10.0% | 61.9% | |
| EBITDA Margin | 16.2% | 9.0% | 10.7% | 9.4% | 13.6% | 4.2% |
| Net Income Margin | 6.7% | 2.1% | 4.0% | -0.9% | 11.2% | 12.2% |
| CAPEX, % of revenue | 2.7% | 7.5% | 17.9% | 1.3% | 11.3% | 10.0% |
| ROIC | 8.9% | 4.8% | 9.4% | 9.8% | 20.7% | 10.9% |
| ROE | 8.6% | 3.2% | 10.4% | -3.9% | 35.7% | 39.7% |
| Net Debt/EBITDA | 1.9x | 3.0x | 3.0x | 2.3x | 1.3x | -1.0x |
Revenue and profitability
Shreyas Shipping & Logistics's Revenue jumped on 12.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.2 pp from 6.6% to 0.41% in FY2015.
Net Income marign surged on 12.2 pp from -0.94% to 11.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Shreyas Shipping & Logistics had CAPEX/Revenue of 11.3%. Shreyas Shipping & Logistics's CAPEX/Revenue increased on 3.8 pp from 7.5% in FY2012 to 11.3% in FY2015. For the last three years the average CAPEX/Revenue was 10.2%.The company invested a big chunk of EBITDA (83.0%) to CAPEX to secure its growth.
Return on investment
The company operates at high and attractive ROIC (20.69%) and ROE (35.74%). ROIC surged on 10.9 pp from 9.8% to 20.7% in FY2015. ROE surged on 39.7 pp from -3.9% to 35.7% in FY2015.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 2.3x to 1.3x in FY2015. Debt increased slightly on 1.2% in FY2015 while cash surged on 49.5% in FY2015.
Appendix 1: Peers in Shipping
Below you can find Shreyas Shipping & Logistics benchmarking vs. other companies in Shipping 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 |
|---|
| Global Offshore Services ($GLOBOFFS) | -55.7% | 14.0% | 2.9% | 52.2% | |
| Great Eastern Shipping Co ($GESHIP) | | 20.6% | 1.6% | 2.3% | 11.8% |
| Shipping Corporation Of India ($SCI) | | 7.8% | 8.7% | 0.0% | -0.0% |
| |
|---|
| Median (3 companies) | -55.7% | 14.0% | 2.9% | 2.3% | 5.9% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | | 42.2% | 43.6% | 25.3% | 12.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | 42.7% | 42.1% | 62.4% | 48.3% | |
| Great Eastern Shipping Co ($GESHIP) | 36.7% | 37.1% | 39.0% | 47.1% | 44.7% |
| Shipping Corporation Of India ($SCI) | 27.2% | 7.8% | 6.1% | 14.2% | 23.5% |
| |
|---|
| Median (3 companies) | 36.7% | 37.1% | 39.0% | 47.1% | 34.1% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 16.2% | 9.0% | 10.7% | 9.4% | 13.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | | 39.6% | 140.1% | 106.2% | |
| Shipping Corporation Of India ($SCI) | 92.1% | 57.3% | 70.2% | 27.3% | 17.2% |
| Great Eastern Shipping Co ($GESHIP) | 105.3% | 51.0% | 48.2% | 20.4% | 45.5% |
| |
|---|
| Median (3 companies) | 98.7% | 51.0% | 70.2% | 27.3% | 31.4% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 2.7% | 7.5% | 17.9% | 1.3% | 11.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | 6.0% | 5.6% | 9.0% | 7.1% | |
| Great Eastern Shipping Co ($GESHIP) | 4.1% | 4.4% | 4.5% | 6.0% | 7.1% |
| Shipping Corporation Of India ($SCI) | 4.8% | -2.5% | -3.6% | -1.8% | 1.5% |
| |
|---|
| Median (3 companies) | 4.8% | 4.4% | 4.5% | 6.0% | 4.3% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 8.9% | 4.8% | 9.4% | 9.8% | 20.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shipping Corporation Of India ($SCI) | 2.3x | 16.3x | 27.2x | 12.3x | 5.7x |
| Global Offshore Services ($GLOBOFFS) | 7.0x | 6.8x | 5.8x | 6.4x | |
| Great Eastern Shipping Co ($GESHIP) | 3.2x | 5.9x | 5.8x | 3.7x | 2.2x |
| |
|---|
| Median (3 companies) | 3.2x | 6.8x | 5.8x | 6.4x | 3.9x |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 1.9x | 3.0x | 3.0x | 2.3x | 1.3x |
