Bgr Energy Systems Net Debt / EBITDA jumped on 8.9x from 4.1x to 13.0x in 2015 while EBITDA dropped on 66.7%
28-05-2015 • About Bgr Energy Systems (
$BGRENERGY) • By InTwits
Bgr Energy Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.0% in FY2015, 12.2% in FY2014, 14.6% in FY2013, 14.1% in FY2012, 12.4% in FY2011
- Bgr Energy Systems has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 12.7%.
- CAPEX is quite volatile: 105 in FY2015, 126 in FY2014, 1,826 in FY2013, 1,475 in FY2012, 1,458 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.8%
- It operates with high leverage: Net Debt/EBITDA is 13.0x while industry average is 8.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bgr Energy Systems ($BGRENERGY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 47,526 | 34,505 | 31,133 | 33,009 | 33,663 | 2.0% |
| SG&A | | | | | 95 | |
| EBITDA | 5,894 | 4,848 | 4,549 | 4,032 | 1,342 | -66.7% |
| Net Income | 3,230 | 2,242 | 1,621 | 961 | -799 | -183.2% |
Balance Sheet
|
|---|
| Cash | 2,261 | 5,192 | 6,350 | 3,698 | 3,764 | 1.8% |
| Short Term Debt | 12,928 | 17,267 | 22,031 | 20,119 | 17,660 | -12.2% |
| Long Term Debt | 445 | 424 | 131 | 78 | 3,518 | 4,421.3% |
Cash flow
|
|---|
| Capex | 1,458 | 1,475 | 1,826 | 126 | 105 | -16.3% |
Ratios
|
|---|
| Revenue growth | 17.6% | -27.4% | -9.8% | 6.0% | 2.0% | |
| EBITDA growth | 69.2% | -17.7% | -6.2% | -11.4% | -66.7% | |
| EBITDA Margin | 12.4% | 14.1% | 14.6% | 12.2% | 4.0% | -8.2% |
| Net Income Margin | 6.8% | 6.5% | 5.2% | 2.9% | -2.4% | -5.3% |
| SG&A, % of revenue | | | | | 0.3% | 0.3% |
| CAPEX, % of revenue | 3.1% | 4.3% | 5.9% | 0.4% | 0.3% | -0.1% |
| ROIC | 25.9% | 15.5% | 11.9% | 9.7% | 2.8% | -6.9% |
| ROE | 39.0% | 21.7% | 13.8% | 7.6% | -6.4% | -14.0% |
| Net Debt/EBITDA | 1.9x | 2.6x | 3.5x | 4.1x | 13.0x | 8.9x |
Revenue and profitability
The company's Revenue increased slightly on 2.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign decreased on 5.3 pp from 2.9% to -2.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Bgr Energy Systems had CAPEX/Revenue of 0.31%. Bgr Energy Systems's CAPEX/Revenue decreased on 4.0 pp from 4.3% in FY2012 to 0.31% in FY2015. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low but positive ROIC (2.81%) and negative ROE (-6.38%). ROIC decreased on 6.9 pp from 9.7% to 2.8% in FY2015. ROE dropped on 14.0 pp from 7.6% to -6.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.0x and Debt / EBITDA is 15.8x. Net Debt / EBITDA surged on 8.9x from 4.1x to 13.0x in FY2015. Debt increased on 4.9% in FY2015 while cash increased slightly on 1.8% in FY2015.
Management team
Bgr Energy Systems's CEO is A Swaminathan. A Swaminathan has 5 years tenure at the company.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find Bgr Energy Systems 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 ($UJAAS) | | 1.1% | 614.7% | 116.7% | -78.9% |
| Transformers And Rectifiers (India) ($TRIL) | | -4.4% | -1.3% | 42.8% | -24.3% |
| Jyoti Structures ($JYOTISTRUC) | -35.2% | 15.3% | 8.9% | 20.7% | |
| Emco ($EMCO) | -4.5% | -19.1% | -13.0% | 20.2% | |
| Crompton Greaves ($CROMPGREAV) | | 12.4% | 7.5% | 12.7% | -57.5% |
| |
|---|
| Median (15 companies) | -4.5% | 13.7% | -7.7% | 1.7% | -2.9% |
|---|
| Bgr Energy Systems ($BGRENERGY) | | -27.4% | -9.8% | 6.0% | 2.0% |
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% |
| Bharat Heavy Electricals ($BHEL) | 20.6% | 21.0% | 19.7% | 11.8% | 8.4% |
| Emco ($EMCO) | -1.0% | 7.4% | 9.5% | 11.3% | |
| |
|---|
| Median (15 companies) | 12.5% | 8.9% | 8.8% | 6.6% | 8.6% |
|---|
| Bgr Energy Systems ($BGRENERGY) | 12.4% | 14.1% | 14.6% | 12.2% | 4.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($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% | 5.7% | 3.0% | 2.6% | 1.8% |
|---|
| Bgr Energy Systems ($BGRENERGY) | 3.1% | 4.3% | 5.9% | 0.4% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($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 ($CROMPGREAV) | 32.5% | 12.9% | 3.5% | 10.1% | 4.1% |
| Jyoti Structures ($JYOTISTRUC) | 26.3% | 25.2% | 16.3% | 9.5% | |
| |
|---|
| Median (17 companies) | 17.4% | 14.1% | 6.3% | 8.3% | 4.9% |
|---|
| Bgr Energy Systems ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | 2.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($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) | 1.0x | 1.5x | 2.6x | 2.5x | 2.4x |
|---|
| Bgr Energy Systems ($BGRENERGY) | 1.9x | 2.6x | 3.5x | 4.1x | 13.0x |
