Trending stocks

Beml Debt dropped on 32.6% in 2015 and EBITDA dropped on 38.4%

29-05-2015 • About Beml ($BEML) • By InTwits

Beml reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Beml is a company in decline: FY2015 revenue growth was -3.5%, 5 years revenue CAGR was -2.7%
  • EBITDA Margin is quite volatile: 2.6% in FY2015, 4.0% in FY2014, -1.5% in FY2013, 4.8% in FY2012, 4.1% in FY2011
  • Beml has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 3.4%.
  • CAPEX is quite volatile: 408 in FY2015, 431 in FY2014, 1,337 in FY2013, 1,204 in FY2012, 1,698 in FY2011
  • The company has potentially unprofitable business model: ROIC is at 0.6%
  • It operates with medium-size leverage: Net Debt/EBITDA is 6.9x while industry average is 7.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Beml ($BEML) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue26,43827,15028,01229,03728,021-3.5%
EBITDA1,0881,303-4121,171721-38.4%
Net Income1,469569-8336159-2.8%
Balance Sheet
Cash4831,9437791701,451753.0%
Short Term Debt6,7296,9717,6484,9262,314-53.0%
Long Term Debt1,2972,4774,9814,6524,139-11.0%
Cash flow
Capex1,6981,2041,337431408-5.4%
Ratios
Revenue growth-17.6%2.7%3.2%3.7%-3.5%
EBITDA growth-62.9%19.7%-131.6%-384.4%-38.4%
EBITDA Margin4.1%4.8%-1.5%4.0%2.6%-1.5%
Net Income Margin5.6%2.1%-3.0%0.2%0.2%0.0%
CAPEX, % of revenue6.4%4.4%4.8%1.5%1.5%-0.0%
ROIC2.3%2.6%-2.9%1.9%0.6%-1.3%
ROE7.0%2.6%-3.9%0.3%0.3%-0.0%
Net Debt/EBITDA6.9x5.8x8.0x6.9x-1.1x

Revenue and profitability


The company's Revenue decreased on 3.5% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.5 pp from 4.0% to 2.6% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


The company's CAPEX/Revenue was 1.5% in FY2015. Beml showed decline in CAPEX/Revenue of 3.0 pp from 4.4% in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 2.6%.The company invested a big chunk of EBITDA (56.5%) to CAPEX which didn't stop revenue from falling.

Return on investment


The company operates at low ROIC (0.58%) and ROE (0.29%). ROIC decreased slightly on 1.3 pp from 1.9% to 0.58% in FY2015. ROE showed almost no change in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 6.9x and Debt / EBITDA is 8.9x. Net Debt / EBITDA dropped on 1.1x from 8.0x to 6.9x in FY2015. Debt dropped on 32.6% in FY2015 while cash jumped on 753% in FY2015.

Appendix 1: Peers in Commercial Vehicles


Below we provide Beml benchmarking against other companies in Commercial Vehicles 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 5 FY2011 FY2012 FY2013 FY2014 FY2015
V.S.T.Tillers Tractors ($VSTTILLERS)24.2%-9.2%29.6%-11.6%
Tata Motors ($TATAMOTORS)35.7%13.5%23.3%13.4%
Trf ($TRF)-16.6%19.2%-16.0%5.4%
Ashok Leyland ($ASHOKLEY)15.5%-3.3%-8.0%33.6%
Abg Shipyard ($ABGSHIP)18.2%-17.2%-20.5%-72.9%
 
Median (6 companies)6.6%18.7%-12.6%-1.3%0.9%
Beml ($BEML)2.7%3.2%3.7%-3.5%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
V.S.T.Tillers Tractors ($VSTTILLERS)17.0%14.0%15.1%19.2%19.1%
Tata Motors ($TATAMOTORS)12.9%12.3%12.2%13.5%14.4%
Ashok Leyland ($ASHOKLEY)11.0%9.7%7.0%4.1%10.7%
Brady & Morris Engineering Co ($BRADYM)6.9%
Stone India ($STONEIN)4.7%
 
Median (7 companies)11.9%11.0%9.6%8.8%6.9%
Beml ($BEML)4.1%4.8%-1.5%4.0%2.6%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Abg Shipyard ($ABGSHIP)17.0%21.0%9.1%15.2%3.7%
Tata Motors ($TATAMOTORS)6.8%8.5%10.2%11.8%12.4%
V.S.T.Tillers Tractors ($VSTTILLERS)1.3%2.4%6.7%5.9%4.1%
Ashok Leyland ($ASHOKLEY)3.2%5.4%5.2%3.6%1.6%
Trf ($TRF)2.9%1.5%1.1%0.4%
 
Median (6 companies)3.0%3.9%6.0%4.7%3.9%
Beml ($BEML)6.4%4.4%4.8%1.5%1.5%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
V.S.T.Tillers Tractors ($VSTTILLERS)45.9%36.4%29.3%41.0%28.0%
Tata Motors ($TATAMOTORS)19.3%20.1%16.6%17.2%17.8%
Cranex ($CRANEX)5.5%5.3%5.2%
Abg Shipyard ($ABGSHIP)11.8%12.0%8.8%5.0%-4.8%
Trf ($TRF)3.3%11.4%-4.1%0.5%
 
Median (12 companies)12.7%11.4%7.5%2.7%12.7%
Beml ($BEML)2.3%2.6%-2.9%1.9%0.6%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Trf ($TRF)11.2x5.2x36.0x
Ashok Leyland ($ASHOKLEY)2.0x2.5x5.0x17.8x5.0x
Abg Shipyard ($ABGSHIP)4.3x4.6x6.6x11.7x
Cranex ($CRANEX)6.1x10.0x9.9x9.0x
Tata Motors ($TATAMOTORS)1.8x1.7x1.7x1.2x1.2x
 
Median (7 companies)2.1x2.8x1.7x9.0x0.0x
Beml ($BEML)6.9x5.8x8.0x6.9x