A2Z Maintenance & Engineering Services revenue dropped on 15.4% in 2015 and EBITDA Margin decreased on 3.0 pp from -12.2% to -15.3%
27-05-2015 • About A2Z Maintenance & Engineering Services (
$A2ZMES) • By InTwits
A2Z Maintenance & Engineering Services reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- A2Z Maintenance & Engineering Services is a company in decline: FY2015 revenue growth was -15.4%, 5 years revenue CAGR was -4.1%
- The company operates at negative EBITDA Margin: -15.3%
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
A2Z Maintenance & Engineering Services ($A2ZMES) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,447 | 13,386 | 9,028 | 6,988 | 5,915 | -15.4% |
| EBITDA | 2,386 | 1,047 | -117 | -854 | -902 | |
| Net Income | 771 | -179 | -1,059 | -2,471 | -2,087 | |
Balance Sheet
|
|---|
| Cash | 783 | 551 | 162 | 136 | 137 | 0.5% |
| Short Term Debt | 3,158 | 6,120 | 6,656 | 8,755 | 6,425 | -26.6% |
| Long Term Debt | 1,604 | 5,200 | 5,629 | 5,339 | 6,236 | 16.8% |
Cash flow
|
|---|
| Capex | 3,440 | 4,747 | 1,970 | 790 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 84.8% | -0.5% | -32.6% | -22.6% | -15.4% | |
| EBITDA growth | 13.4% | -56.1% | -111.1% | 631.6% | 5.7% | |
| EBITDA Margin | 17.7% | 7.8% | -1.3% | -12.2% | -15.3% | -3.0% |
| Net Income Margin | 5.7% | -1.3% | -11.7% | -35.4% | -35.3% | 0.1% |
| CAPEX, % of revenue | 25.6% | 35.5% | 21.8% | 11.3% | | -11.3% |
| ROIC | 17.2% | 4.3% | -2.3% | -5.2% | -6.5% | -1.3% |
| ROE | 9.8% | -1.6% | -10.0% | -27.7% | -30.5% | -2.8% |
| Net Debt/EBITDA | 1.7x | 10.3x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 15.4% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from -12.2% to -15.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Return on investment
The company operates at negative ROIC (-6.45%) and ROE (-30.52%). ROIC decreased slightly on 1.3 pp from -5.2% to -6.5% in FY2015. ROE decreased on 2.8 pp from -27.7% to -30.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -10.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 10.2% in FY2015 while cash increased slightly on 0.51% in FY2015.
Management team
The company's CEO Rajesh Jain has spent 4 years at the company.
Appendix 1: Peers in Utilities:Non-Elec.
Below we provide A2Z Maintenance & Engineering Services benchmarking against other companies in Utilities:Non-Elec. 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 |
|---|
| Va Tech Wabag ($WABAG) | | 16.2% | 12.1% | 38.3% | 8.8% |
| Gail (India) ($GAIL) | | 25.5% | 15.5% | 21.1% | -1.8% |
| |
|---|
| Median (2 companies) | | 20.9% | 13.8% | 29.7% | 3.5% |
|---|
| A2Z Maintenance & Engineering Services ($A2ZMES) | | -0.5% | -32.6% | -22.6% | -15.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Va Tech Wabag ($WABAG) | 25.5% | | | 24.6% | 21.0% |
| |
|---|
| Median (1 company) | 25.5% | | | 24.6% | 21.0% |
|---|
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gail (India) ($GAIL) | 18.5% | 16.0% | 14.7% | 13.0% | 9.3% |
| Va Tech Wabag ($WABAG) | 9.7% | 9.1% | 9.6% | 9.4% | 8.6% |
| |
|---|
| Median (2 companies) | 14.1% | 12.6% | 12.1% | 11.2% | 9.0% |
|---|
| A2Z Maintenance & Engineering Services ($A2ZMES) | 17.7% | 7.8% | -1.3% | -12.2% | -15.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gail (India) ($GAIL) | 20.6% | 22.4% | 17.7% | 8.5% | 4.8% |
| Va Tech Wabag ($WABAG) | 1.6% | 1.6% | 2.6% | 4.6% | 1.2% |
| |
|---|
| Median (2 companies) | 11.1% | 12.0% | 10.1% | 6.6% | 3.0% |
|---|
| A2Z Maintenance & Engineering Services ($A2ZMES) | 25.6% | 35.5% | 21.8% | 11.3% | |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Va Tech Wabag ($WABAG) | 21.2% | 17.9% | 18.2% | 21.1% | 18.5% |
| Gail (India) ($GAIL) | 18.2% | 16.5% | 13.8% | 12.1% | 7.3% |
| |
|---|
| Median (2 companies) | 19.7% | 17.2% | 16.0% | 16.6% | 12.9% |
|---|
| A2Z Maintenance & Engineering Services ($A2ZMES) | 17.2% | 4.3% | -2.3% | -5.2% | -6.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gail (India) ($GAIL) | 0.7x | 1.4x | 1.8x | 1.9x | 3.0x |
| Va Tech Wabag ($WABAG) | -2.1x | -1.6x | -1.3x | -0.5x | -0.6x |
| |
|---|
| Median (2 companies) | -0.7x | -0.1x | 0.2x | 0.7x | 1.2x |
|---|
