3M India Net Income surged on 152% in 2015 and Revenue increased on 7.7%
29-05-2015 • About 3M India (
$3MINDIA) • By InTwits
3M India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 18.1%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
3M India ($3MINDIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,914 | 14,051 | 15,741 | 17,084 | 18,403 | 7.7% |
| EBITDA | 1,564 | 1,229 | 1,156 | 1,222 | 2,035 | 66.5% |
| Net Income | 988 | 648 | 523 | 430 | 1,083 | 152.0% |
Balance Sheet
|
|---|
| Cash | 507 | 539 | 596 | 597 | 1,139 | 90.8% |
| Short Term Debt | 22 | 667 | 1,660 | 1,142 | 68 | -94.1% |
| Long Term Debt | 100 | 92 | 77 | 67 | 75 | 11.9% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | -48.0% | 17.9% | 12.0% | 8.5% | 7.7% | |
| EBITDA growth | | -21.4% | -6.0% | 5.7% | 66.5% | |
| EBITDA Margin | 13.1% | 8.7% | 7.3% | 7.2% | 11.1% | 3.9% |
| Net Income Margin | 8.3% | 4.6% | 3.3% | 2.5% | 5.9% | 3.4% |
| ROIC | | 15.5% | 10.4% | 8.9% | 18.1% | 9.2% |
| ROE | | 11.3% | 8.3% | 6.3% | 14.4% | 8.0% |
| Net Debt/EBITDA | -0.2x | 0.2x | 1.0x | 0.5x | -0.5x | -1.0x |
Revenue and profitability
3M India's Revenue increased on 7.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 10.2% to 11.9% in FY2015.
Net Income marign increased on 3.4 pp from 2.5% to 5.9% in FY2015.
Return on investment
The company operates at good ROIC (18.11%) and ROE (14.38%). ROIC increased on 9.2 pp from 8.9% to 18.1% in FY2015. ROE increased on 8.0 pp from 6.3% to 14.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 1.0x from 0.5x to -0.5x in FY2015. Debt dropped on 88.2% in FY2015 while cash surged on 90.8% in FY2015.
Valuation
The company's trades at EV/EBITDA 42.7x and P/E 81.1x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Diversified
Below we provide 3M India benchmarking against other companies in Diversified 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 |
|---|
| Aditya Birla Nuvo ($ABIRLANUVO) | | 21.3% | 16.7% | 1.6% | 2.4% |
| Dcm Shriram ($DCMSHRIRAM) | | 21.2% | 10.2% | 11.6% | -9.0% |
| Mercator ($MERCATOR) | | 30.8% | 0.9% | -7.4% | -10.6% |
| |
|---|
| Median (3 companies) | | 21.3% | 10.2% | 1.6% | -9.0% |
|---|
| 3M India ($3MINDIA) | | 17.9% | 12.0% | 8.5% | 7.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aditya Birla Nuvo ($ABIRLANUVO) | 17.0% | 13.5% | 14.9% | 17.7% | 20.4% |
| Mercator ($MERCATOR) | 22.8% | 15.8% | 13.6% | 18.6% | 17.1% |
| Raja Bahadur International ($RAJABAH) | | | | | 9.0% |
| Dcm Shriram ($DCMSHRIRAM) | 5.2% | 6.9% | 10.0% | 8.4% | 7.3% |
| |
|---|
| Median (4 companies) | 17.0% | 13.5% | 13.6% | 17.7% | 13.0% |
|---|
| 3M India ($3MINDIA) | 13.1% | 8.7% | 7.3% | 7.2% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mercator ($MERCATOR) | 48.5% | 7.4% | 2.0% | 11.4% | 26.4% |
| Aditya Birla Nuvo ($ABIRLANUVO) | 16.0% | 7.6% | 6.5% | 17.1% | 7.2% |
| Dcm Shriram ($DCMSHRIRAM) | 2.2% | 1.3% | 1.4% | 1.5% | 1.9% |
| |
|---|
| Median (3 companies) | 16.0% | 7.4% | 2.0% | 11.4% | 7.2% |
|---|
| 3M India ($3MINDIA) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 1.8% | 5.9% | 12.3% | 12.1% | 10.3% |
| Aditya Birla Nuvo ($ABIRLANUVO) | 14.1% | 10.3% | 10.8% | 10.3% | 10.3% |
| Mercator ($MERCATOR) | 5.5% | 3.4% | 1.0% | 3.5% | 0.9% |
| Advanced Micronic Devices ($ADVNCMIC) | 9.2% | 9.1% | -2.8% | | |
| Raja Bahadur International ($RAJABAH) | | | | | |
| |
|---|
| Median (5 companies) | 7.4% | 9.1% | 5.9% | 10.3% | 10.3% |
|---|
| 3M India ($3MINDIA) | | 15.5% | 10.4% | 8.9% | 18.1% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mercator ($MERCATOR) | 4.9x | 4.9x | 5.4x | 4.7x | 6.9x |
| Aditya Birla Nuvo ($ABIRLANUVO) | 2.8x | 3.3x | 4.0x | 3.9x | 4.6x |
| Dcm Shriram ($DCMSHRIRAM) | 7.5x | 4.7x | 2.6x | 1.7x | 1.6x |
| Raja Bahadur International ($RAJABAH) | | | | | 0.0x |
| |
|---|
| Median (4 companies) | 2.8x | 4.5x | 4.0x | 2.8x | 3.1x |
|---|
| 3M India ($3MINDIA) | -0.2x | 0.2x | 1.0x | 0.5x | -0.5x |
