Cmi Fpe revenue dropped on 50.5% in 2015 and EBITDA Margin decreased slightly on 0.94 pp from -2.9% to -3.8%

29-05-2015 • About Cmi Fpe ($CMIFPE) • By InTwits

Cmi Fpe reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Cmi Fpe is a company in decline: FY2015 revenue growth was -50.5%, 5 years revenue CAGR was -2.8%
The company operates at negative EBITDA Margin: -3.8%
EBITDA Margin is quite volatile: -3.8% in FY2015, -2.9% in FY2014, -0.1% in FY2013, 7.5% in FY2012, 13.5% in FY2011
Cmi Fpe has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 4.6%.
CAPEX is quite volatile: 67.2 in FY2015, 74.3 in FY2014, 247 in FY2013, 262 in FY2012, 31.4 in FY2011
The company has unprofitable business model: ROIC is at -7.8%

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Cmi Fpe ($CMIFPE) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	4,184	3,518	5,329	4,428	2,193	-50.5%
EBITDA	565	262	-3	-129	-84
Net Income	472	110	-10	-223	95
Balance Sheet
Cash	139	209	70	26	193	649.7%
Short Term Debt	0	2	454	167	138	-17.5%
Long Term Debt	0	33	231	173	115	-33.3%
Cash flow
Capex	31	262	247	74	67	-9.6%
Ratios
Revenue growth	65.9%	-15.9%	51.5%	-16.9%	-50.5%
EBITDA growth	0.7%	-53.6%	-101.1%	4,492.3%	-34.5%
EBITDA Margin	13.5%	7.5%	-0.1%	-2.9%	-3.8%	-0.9%
Net Income Margin	11.3%	3.1%	-0.2%	-5.0%	4.3%	9.4%
CAPEX, % of revenue	0.7%	7.4%	4.6%	1.7%	3.1%	1.4%
ROIC	40.3%	14.2%	-2.4%	-9.8%	-7.8%	2.0%
ROE	37.5%	7.4%	-0.7%	-16.0%	7.1%	23.1%
Net Debt/EBITDA	-0.2x	-0.7x				0.0x

Revenue and profitability

Cmi Fpe's Revenue dropped on 50.5% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.94 pp from -2.9% to -3.8% in FY2015.

Net Income marign increased on 9.4 pp from -5.0% to 4.3% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 Cmi Fpe had CAPEX/Revenue of 3.1%. Cmi Fpe's CAPEX/Revenue decreased on 4.4 pp from 7.4% in FY2012 to 3.1% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.1%.

Return on investment

The company operates at negative ROIC (-7.84%) and low but positive ROE (7.10%). ROIC increased slightly on 2.0 pp from -9.8% to -7.8% in FY2015. ROE jumped on 23.1 pp from -16.0% to 7.1% in FY2015.

Leverage (Debt)

Debt level is 0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt dropped on 25.5% in FY2015 while cash surged on 650% in FY2015.

Appendix 1: Peers in Industrial Machinery

Below you can find Cmi Fpe 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
Lloyd Electric & Engineering ($LLOYDELENG)		32.2%	9.9%	20.5%	22.3%
Kabra Extrusiontechnik ($KABRAEXTRU)		-13.3%	-8.7%	28.4%	21.6%
Akar Tools ($AKARTOOL)		21.1%	2.1%	-2.3%	16.7%
Honda Siel Power Products ($HONDAPOWER)		28.1%	2.4%	5.0%	16.5%
Abc Bearings ($ABCBEARS)		-13.0%	-15.5%	-6.6%	15.7%
Median (21 companies)	-7.1%	20.1%	2.1%	4.0%	3.7%
Cmi Fpe ($CMIFPE)		-15.9%	51.5%	-16.9%	-50.5%

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 ($GOLDINFRA)					18.1%
Median (35 companies)	14.0%	11.2%	9.6%	10.5%	10.4%
Cmi Fpe ($CMIFPE)	13.5%	7.5%	-0.1%	-2.9%	-3.8%

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 ($FORBESCO)	2.8%	1.8%	2.6%	3.0%	5.1%
Median (19 companies)	3.9%	5.5%	3.7%	3.0%	3.3%
Cmi Fpe ($CMIFPE)	0.7%	7.4%	4.6%	1.7%	3.1%

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) ($WENDT)		38.2%	20.2%	16.2%	15.1%
Median (51 companies)	14.6%	12.6%	10.9%	9.7%	13.0%
Cmi Fpe ($CMIFPE)	40.3%	14.2%	-2.4%	-9.8%	-7.8%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Forbes & Company ($FORBESCO)	3.5x	2.2x	3.3x	4.7x	6.3x
Nitin Fire Protection Industries ($NITINFIRE)	2.0x	3.6x	3.5x	3.0x	3.7x
Elgi Equipments ($ELGIEQUIP)	-0.7x	-1.2x	2.3x	2.7x	3.3x
Lloyd Electric & Engineering ($LLOYDELENG)	4.0x	3.2x	3.0x	3.7x	3.2x
Elecon Engineering Co ($ELECON)	3.1x	3.0x	3.2x	4.0x	3.1x
Median (31 companies)	1.3x	1.1x	1.6x	0.0x	0.0x

Cmi Fpe stock price chart

Cmi Fpe financials

mln.	FY2010	FY2011	FY2012

Revenue	2,522	4,184	3,518
EBITDA	561.3	565.1	262.2
Net income	272.9	471.8	109.6
CAPEX	47.368	31.364	261.9
Debt	0.000	0.000	35.000
Cash	136.0	139.1	208.9

About Cmi Fpe

CMI FPE Limited engages in the design, manufacture, erection, and commissioning of cold rolling mill complexes, processing lines, chemical equipment, industrial furnaces, and auxiliary equipment primarily for steel industry. It offers continuous hot dip galvanizing lines; processing lines; reheating furnaces for hot strip mills, plate mills, and tubes and pipes mills; vertical furnaces; horizontal and L-shaped furnaces; low energy consumption ovens; chemical pickling sections for carbon steel lines and stainless steel annealing/ pickling lines; chemical degreasing sections for ferrous and non-ferrous strip and batch; recovery and pyrohydrolysis plants; long products pickling lines; acid regeneration plants; and rolling mills. The company also offers coupled pickling lines and tandem cold mills; strip coating equipment for processing lines; cold rolling mills; skin pass mills; continuous annealing lines; organic coating lines; special equipment for hot and cold strip mills; chemical degreasing/cleaning section for ferrous and non ferrous lines; dual product lines and combined lines; strip processing lines for silicon steel; and wet flux galvanizing lines. It operates in Asia, Africa, the Middle East, Europe, North America, South America, and internationally. The company was formerly known as Flat Products Equipments (India) Ltd. and changed its name to CMI FPE Limited in September 2008. CMI FPE Limited was incorporated in 1986 and is headquartered in Mumbai, India. CMI FPE Limited is a subsidiary of Cockerill Maintenance and Ingenierie SA.