Dynamatic Technologies Debt dropped on 12.7% in 2015 and EBITDA showed almost no change
28-05-2015 • About Dynamatic Technologies (
$DYNAMATECH) • By InTwits
Dynamatic Technologies reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynamatic Technologies has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 247 in FY2015, 380 in FY2014, 625 in FY2013, 1,505 in FY2012, 1,043 in FY2011
- The company has highly profitable business model: ROIC is at 13.9%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynamatic Technologies ($DYNAMATECH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,513 | 14,875 | 14,196 | 15,425 | 15,992 | 3.7% |
| EBITDA | 812 | 1,450 | 1,484 | 1,629 | 1,630 | 0.1% |
| Net Income | 217 | 246 | -119 | 138 | 287 | 108.1% |
Balance Sheet
|
|---|
| Cash | 105 | 192 | 541 | 376 | 726 | 93.0% |
| Short Term Debt | 1,687 | 2,715 | 3,244 | 2,297 | 2,505 | 9.1% |
| Long Term Debt | 1,635 | 4,663 | 3,442 | 3,619 | 2,658 | -26.5% |
Cash flow
|
|---|
| Capex | 1,043 | 1,505 | 625 | 380 | 247 | -35.1% |
Ratios
|
|---|
| Revenue growth | -76.7% | 229.6% | -4.6% | 8.7% | 3.7% | |
| EBITDA growth | 29.1% | 78.5% | 2.3% | 9.8% | 0.1% | |
| EBITDA Margin | 18.0% | 9.8% | 10.5% | 10.6% | 10.2% | -0.4% |
| Net Income Margin | 4.8% | 1.7% | -0.8% | 0.9% | 1.8% | 0.9% |
| CAPEX, % of revenue | 23.1% | 10.1% | 4.4% | 2.5% | 1.5% | -0.9% |
| ROIC | 11.9% | 13.8% | 11.0% | 13.2% | 13.9% | 0.7% |
| ROE | 15.8% | 16.7% | -8.7% | 9.6% | 14.2% | 4.6% |
| Net Debt/EBITDA | 4.0x | 5.0x | 4.1x | 3.4x | 2.7x | -0.7x |
Revenue and profitability
The company's Revenue increased on 3.7% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased slightly on 0.90 pp from 0.89% to 1.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.5%. CAPEX/Revenue decreased on 8.6 pp from 10.1% in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROIC (13.92%) and ROE (14.16%). ROIC increased slightly on 0.69 pp from 13.2% to 13.9% in FY2015. ROE increased on 4.6 pp from 9.6% to 14.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 3.2x. Net Debt / EBITDA dropped on 0.7x from 3.4x to 2.7x in FY2015. Debt dropped on 12.7% in FY2015 while cash surged on 93.0% in FY2015.
Valuation
The company's trades at EV/EBITDA 14.6x and P/E 67.5x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 17.2x with the industry average at 4.7x.
Management team
Udayant Malhoutra is a the company's CEO. Udayant Malhoutra has spent 4 years at the company. Hanuman Kumar Sharma is a The company's CFO. Hanuman Kumar Sharma has spent 6 years at the company.
Appendix 1: Peers in Industrial Machinery
Below you can find Dynamatic Technologies benchmarking vs. other companies in Industrial Machinery 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 |
|---|
| Forbes & Company ($FORBESCO) | | 22.4% | 13.0% | 53.4% | 15.6% |
| Nitin Fire Protection Industries ($NITINFIRE) | | 22.3% | 31.5% | 44.2% | 12.2% |
| Gmm Pfaudler ($GMM) | | -26.1% | 47.8% | 31.0% | 10.3% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | | -13.3% | -8.7% | 28.4% | 21.6% |
| Veejay Lakshmi Engineering Works ($VJLAXMIE) | 27.9% | -28.8% | 5.7% | 26.6% | |
| |
|---|
| Median (26 companies) | 13.8% | 14.1% | 2.3% | 0.9% | 12.5% |
|---|
| Dynamatic Technologies ($DYNAMATECH) | | 229.6% | -4.6% | 8.7% | 3.7% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bell Agromachina ($BELAGRO) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | | | | | 40.5% |
| Dhp India ($DHPIND) | | | | | 26.3% |
| Solitaire Machine Tools ($SOLIMAC) | | | | | 19.4% |
| Wendt (India) ($WENDT) | 30.8% | 28.3% | 21.6% | 18.6% | 19.0% |
| Goldstone Infratech ($GOLDINFRA) | | | | | 18.1% |
| |
|---|
| Median (29 companies) | 13.5% | 11.2% | 9.4% | 10.0% | 10.7% |
|---|
| Dynamatic Technologies ($DYNAMATECH) | 18.0% | 9.8% | 10.5% | 10.6% | 10.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | | | | | 14.0% |
| Wendt (India) ($WENDT) | 7.2% | 13.5% | 9.0% | 8.8% | 9.4% |
| Ingersoll-Rand (India) ($INGERRAND) | 1.3% | 4.3% | 10.9% | 3.6% | 9.2% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | 5.4% | 6.5% | 1.8% | 0.5% | 8.8% |
| Forbes & Company ($FORBESCO) | 2.8% | 1.8% | 2.6% | 3.0% | 5.1% |
| |
|---|
| Median (16 companies) | 3.4% | 5.5% | 3.7% | 3.0% | 3.8% |
|---|
| Dynamatic Technologies ($DYNAMATECH) | 23.1% | 10.1% | 4.4% | 2.5% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rexnord Electronics & Controls ($REXNORD) | 10.4% | | | 18.8% | |
| Gmm Pfaudler ($GMM) | 14.2% | -76.2% | 6.8% | 17.4% | 18.2% |
| Greaves Cotton ($GREAVESCOT) | | | 24.8% | 16.3% | 26.7% |
| Lakshmi Machine Works ($LAXMIMACH) | 16.8% | 18.0% | 11.7% | 16.2% | 17.6% |
| Wendt (India) ($WENDT) | | 38.2% | 20.2% | 16.2% | 15.1% |
| |
|---|
| Median (51 companies) | 15.2% | 12.6% | 10.2% | 9.2% | 13.0% |
|---|
| Dynamatic Technologies ($DYNAMATECH) | 11.9% | 13.8% | 11.0% | 13.2% | 13.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chemtech Industrial Valves ($CHEMTECH) | 7.7x | 6.4x | 5.3x | 8.8x | |
| Forbes & Company ($FORBESCO) | 3.5x | 2.2x | 3.3x | 4.7x | 6.3x |
| Lokesh Machines ($LOKESHMACH) | 4.0x | 3.7x | 3.3x | 4.6x | |
| Elecon Engineering Co ($ELECON) | 3.1x | 3.0x | 3.2x | 4.0x | 3.1x |
| Lloyd Electric & Engineering ($LLOYDELENG) | 4.0x | 3.2x | 3.0x | 3.7x | 3.2x |
| |
|---|
| Median (34 companies) | 1.1x | 0.6x | 1.5x | 0.0x | 0.0x |
|---|
| Dynamatic Technologies ($DYNAMATECH) | 4.0x | 5.0x | 4.1x | 3.4x | 2.7x |
