Transformers And Rectifiers (India) reports 58.5% CAPEX growth while 24.3% Revenue decline
27-05-2015 • About Transformers And Rectifiers (India) (
$TRIL) • By InTwits
Transformers And Rectifiers (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Transformers And Rectifiers (India) is a company in decline: FY2015 revenue growth was -24.3%, 5 years revenue CAGR was -4.1%
- EBITDA Margin is quite volatile: 5.1% in FY2015, 5.4% in FY2014, 4.2% in FY2013, 4.7% in FY2012, 12.7% in FY2011
- Transformers And Rectifiers (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 321 in FY2015, 203 in FY2014, 431 in FY2013, 295 in FY2012, 135 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Transformers And Rectifiers (India) ($TRIL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,429 | 5,191 | 5,124 | 7,316 | 5,537 | -24.3% |
| EBITDA | 689 | 242 | 213 | 395 | 284 | -28.1% |
| Net Income | 415 | 100 | 49 | 52 | -80 | -254.8% |
Balance Sheet
|
|---|
| Cash | 160 | 661 | 182 | 77 | 210 | 172.5% |
| Short Term Debt | 678 | 440 | 1,019 | 1,483 | 1,379 | -7.0% |
| Long Term Debt | 6 | 2 | 53 | 212 | 186 | -12.2% |
Cash flow
|
|---|
| Capex | 135 | 295 | 431 | 203 | 321 | 58.5% |
Ratios
|
|---|
| Revenue growth | -20.6% | -4.4% | -1.3% | 42.8% | -24.3% | |
| EBITDA growth | -22.7% | -64.9% | -11.8% | 85.6% | -28.1% | |
| EBITDA Margin | 12.7% | 4.7% | 4.2% | 5.4% | 5.1% | -0.3% |
| Net Income Margin | 7.6% | 1.9% | 1.0% | 0.7% | -1.5% | -2.2% |
| CAPEX, % of revenue | 2.5% | 5.7% | 8.4% | 2.8% | 5.8% | 3.0% |
| ROIC | 16.0% | 4.4% | 3.2% | 5.9% | 2.9% | -3.0% |
| ROE | 13.4% | 3.0% | 1.5% | 1.5% | -2.4% | -3.9% |
| Net Debt/EBITDA | 0.8x | -0.9x | 4.2x | 4.1x | 4.8x | 0.7x |
Revenue and profitability
Transformers And Rectifiers (India)'s Revenue dropped on 24.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 13.6 pp from 7.3% to 20.9% in FY2015.
Net Income marign decreased on 2.2 pp from 0.71% to -1.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Transformers And Rectifiers (India)'s CAPEX/Revenue was 5.8% in FY2015. Transformers And Rectifiers (India)'s CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 5.7%.Transformers And Rectifiers (India) has spent a lot to CAPEX (113% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (2.95%) and negative ROE (-2.37%). ROIC decreased on 3.0 pp from 5.9% to 2.9% in FY2015. ROE decreased on 3.9 pp from 1.5% to -2.4% in FY2015.
Leverage (Debt)
Debt level is 4.8x Net Debt / EBITDA and 5.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.7x from 4.1x to 4.8x in FY2015. Debt decreased on 7.7% in FY2015 while cash surged on 173% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find Transformers And Rectifiers (India) benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| Ujaas Energy ($UJAAS) | | 1.1% | 614.7% | 116.7% | -78.9% |
| Jyoti Structures ($JYOTISTRUC) | -35.2% | 15.3% | 8.9% | 20.7% | |
| Emco ($EMCO) | -4.5% | -19.1% | -13.0% | 20.2% | |
| Crompton Greaves ($CROMPGREAV) | 9.5% | 12.4% | 7.5% | 12.7% | |
| Suzlon Energy ($SUZLON) | -13.3% | 17.9% | -11.1% | 7.8% | |
| |
|---|
| Median (15 companies) | 9.5% | 13.7% | -9.8% | 1.7% | 12.6% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | | -4.4% | -1.3% | 42.8% | -24.3% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 30.3% | 33.2% | 27.2% | 28.6% | |
| |
|---|
| Median (1 company) | 30.3% | 33.2% | 27.2% | 28.6% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techno Electric And Engineering Co. ($TECHNO) | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% |
| Techno Electric & Engineering Company ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% |
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | 38.1% |
| Bgr Energy Systems ($BGRENERGY) | 12.4% | 14.1% | 14.6% | 12.2% | |
| Bharat Heavy Electricals ($BHEL) | 20.6% | 21.0% | 19.7% | 11.8% | 8.4% |
| |
|---|
| Median (15 companies) | 12.4% | 9.4% | 8.8% | 6.8% | 11.7% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 12.7% | 4.7% | 4.2% | 5.4% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | |
| Ujaas Energy ($UJAAS) | 6.8% | 87.8% | 1.4% | 20.2% | 0.4% |
| T D Power Systems ($TDPOWERSYS) | 1.5% | 3.7% | 14.5% | 15.1% | 3.8% |
| Bharat Heavy Electricals ($BHEL) | 5.2% | 3.3% | 3.6% | 4.1% | 1.1% |
| |
|---|
| Median (14 companies) | 5.4% | 5.1% | 3.0% | 2.3% | 0.8% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 2.5% | 5.7% | 8.4% | 2.8% | 5.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% |
| Alstom India ($AIL) | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% |
| Bharat Heavy Electricals ($BHEL) | 46.1% | 41.5% | 29.5% | 10.3% | 4.0% |
| Crompton Greaves ($CROMPGREAV) | 32.5% | 12.9% | 3.5% | 10.1% | |
| Bgr Energy Systems ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | |
| |
|---|
| Median (17 companies) | 19.5% | 15.3% | 7.1% | 9.3% | 7.8% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 16.0% | 4.4% | 3.2% | 5.9% | 2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 9.7x | 6.1x | | 87.6x | |
| Sterlite Technologies ($STRTECH) | 2.8x | 4.6x | 10.2x | 15.4x | 11.1x |
| Jyoti Structures ($JYOTISTRUC) | 1.3x | 2.4x | 3.6x | 5.7x | |
| Emco ($EMCO) | | 8.1x | 7.3x | 5.7x | |
| Swelect Energy Systems ($SWELECTES) | 0.5x | 0.5x | 1.3x | 5.0x | |
| |
|---|
| Median (15 companies) | 1.3x | 2.5x | 2.6x | 2.5x | 1.1x |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 0.8x | -0.9x | 4.2x | 4.1x | 4.8x |
