Bharat Electronics Net Income surged on 25.8% in 2015 and Revenue increased on 8.8%
29-05-2015 • About Bharat Electronics (
$BEL) • By InTwits
Bharat Electronics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bharat Electronics has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 2,272 in FY2015, 3,747 in FY2014, 3,885 in FY2013, 2,452 in FY2012, 1,452 in FY2011
- The company has highly profitable business model: ROIC is at 13.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bharat Electronics ($BEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 56,266 | 57,920 | 61,509 | 63,359 | 68,953 | 8.8% |
| EBITDA | 10,137 | 6,357 | 6,629 | 9,356 | 11,746 | 25.6% |
| Net Income | 8,778 | 8,467 | 9,108 | 9,513 | 11,972 | 25.8% |
Balance Sheet
|
|---|
| Cash | 9,323 | 4,166 | 4,145 | 4,199 | 5,643 | 34.4% |
| Short Term Debt | 0 | 0 | 4 | 2 | 249 | 14,209.0% |
| Long Term Debt | 5 | 3 | 2 | 3 | 3 | 27.9% |
Cash flow
|
|---|
| Capex | 1,452 | 2,452 | 3,885 | 3,747 | 2,272 | -39.4% |
Ratios
|
|---|
| Revenue growth | -31.7% | 2.9% | 6.2% | 3.0% | 8.8% | |
| EBITDA growth | 14.7% | -37.3% | 4.3% | 41.1% | 25.6% | |
| EBITDA Margin | 18.0% | 11.0% | 10.8% | 14.8% | 17.0% | 2.3% |
| Net Income Margin | 15.6% | 14.6% | 14.8% | 15.0% | 17.4% | 2.3% |
| CAPEX, % of revenue | 2.6% | 4.2% | 6.3% | 5.9% | 3.3% | -2.6% |
| ROIC | 18.4% | 9.7% | 8.9% | 12.0% | 13.5% | 1.5% |
| ROE | 18.3% | 15.5% | 14.8% | 13.9% | 15.4% | 1.5% |
| Net Debt/EBITDA | -0.9x | -0.7x | -0.6x | -0.4x | -0.5x | -0.0x |
Revenue and profitability
Bharat Electronics's Revenue increased on 8.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.4 pp from 3.6% to -6.8% in FY2015.
Net Income marign increased on 2.3 pp from 15.0% to 17.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.3%. The company showed small CAPEX/Revenue decline of 0.94 pp from 4.2% in FY2012 to 3.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at good ROIC (13.51%) and ROE (15.41%). ROIC increased slightly on 1.5 pp from 12.0% to 13.5% in FY2015. ROE increased slightly on 1.5 pp from 13.9% to 15.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.0x. Net Debt / EBITDA decreased slightly on 0.011x from -0.4x to -0.5x in FY2015. Debt surged on 5,584% in FY2015 while cash jumped on 34.4% in FY2015.
Appendix 1: Peers in Defence
Below we provide Bharat Electronics benchmarking against other companies in Defence 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 |
|---|
| Pipavav Defence And Offshore Eng ($PIPAVAVDOC) | -20.6% | 117.1% | 38.5% | -2.0% | |
| |
|---|
| Median (1 company) | -20.6% | 117.1% | 38.5% | -2.0% | |
|---|
| Bharat Electronics ($BEL) | | 2.9% | 6.2% | 3.0% | 8.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pipavav Defence And Offshore Eng ($PIPAVAVDOC) | 22.0% | 23.9% | 23.2% | 30.7% | |
| |
|---|
| Median (1 company) | 22.0% | 23.9% | 23.2% | 30.7% | |
|---|
| Bharat Electronics ($BEL) | 18.0% | 11.0% | 10.8% | 14.8% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pipavav Defence And Offshore Eng ($PIPAVAVDOC) | 39.2% | 28.3% | 76.4% | 32.7% | |
| |
|---|
| Median (1 company) | 39.2% | 28.3% | 76.4% | 32.7% | |
|---|
| Bharat Electronics ($BEL) | 2.6% | 4.2% | 6.3% | 5.9% | 3.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pipavav Defence And Offshore Eng ($PIPAVAVDOC) | 4.1% | 7.6% | 7.7% | 8.1% | |
| |
|---|
| Median (1 company) | 4.1% | 7.6% | 7.7% | 8.1% | |
|---|
| Bharat Electronics ($BEL) | 18.4% | 9.7% | 8.9% | 12.0% | 13.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pipavav Defence And Offshore Eng ($PIPAVAVDOC) | 8.4x | 6.1x | 8.2x | 7.0x | |
| |
|---|
| Median (1 company) | 8.4x | 6.1x | 8.2x | 7.0x | |
|---|
| Bharat Electronics ($BEL) | -0.9x | -0.7x | -0.6x | -0.4x | -0.5x |
