Ifb Industries CAPEX jumped on 50.8% in 2015 and Revenue jumped on 23.6%
29-05-2015 • About Ifb Industries (
$IFBIND) • By InTwits
Ifb Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ifb Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.5%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 300 in FY2015, 508 in FY2014, 205 in FY2013, 586 in FY2012, 366 in FY2011
- The company has business model with average profitability: ROIC is at 11.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ifb Industries ($IFBIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,797 | 8,030 | 9,159 | 10,208 | 12,615 | 23.6% |
| EBITDA | 638 | 494 | 516 | 599 | 894 | 49.3% |
| Net Income | 503 | 305 | 315 | 216 | 497 | 130.2% |
Balance Sheet
|
|---|
| Cash | 247 | 528 | 436 | 672 | 438 | -34.8% |
| Short Term Debt | 0 | 0 | 99 | 478 | 345 | -27.9% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 478 | 588 | 518 | 581 | 876 | 50.8% |
Ratios
|
|---|
| Revenue growth | -53.2% | 18.1% | 14.1% | 11.5% | 23.6% | |
| EBITDA growth | 8.8% | -22.6% | 4.5% | 16.0% | 49.3% | |
| EBITDA Margin | 9.4% | 6.2% | 5.6% | 5.9% | 7.1% | 1.2% |
| Net Income Margin | 7.4% | 3.8% | 3.4% | 2.1% | 3.9% | 1.8% |
| CAPEX, % of revenue | 7.0% | 7.3% | 5.7% | 5.7% | 6.9% | 1.3% |
| ROIC | 28.1% | 14.4% | 11.0% | 9.9% | 11.4% | 1.5% |
| ROE | 27.6% | 13.5% | 11.3% | 6.6% | 13.7% | 7.1% |
| Net Debt/EBITDA | -0.4x | -1.1x | -0.7x | -0.3x | -0.1x | 0.2x |
Revenue and profitability
The company's Revenue jumped on 23.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign increased slightly on 1.8 pp from 2.1% to 3.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Ifb Industries's CAPEX/Revenue was 6.9% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 6.1%.To fuel this fast growth Ifb Industries invested a large share of EBITDA (98.0%) to CAPEX.
Return on investment
The company operates at good ROE (13.73%) while ROIC is low (11.38%). ROIC increased slightly on 1.5 pp from 9.9% to 11.4% in FY2015. ROE increased on 7.1 pp from 6.6% to 13.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.4x. Net Debt / EBITDA jumped on 0.2x from -0.3x to -0.1x in FY2015. Debt dropped on 27.9% in FY2015 while cash dropped on 34.8% in FY2015.
Valuation
Ifb Industries's trades at EV/EBITDA 27.7x and P/E 50.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 1,360.7x with the industry average at 4.7x.
Appendix 1: Peers in Household Appliances
Below you can find Ifb Industries benchmarking vs. other companies in Household Appliances 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -16.5% | -3.6% | -17.8% | 6.6% | |
| Value Industries ($VALUEIND) | 185.7% | -11.7% | 20.3% | 6.1% | |
| Khaitan Electricals ($KHAITANELE) | | -5.5% | 16.9% | 1.1% | -16.9% |
| |
|---|
| Median (3 companies) | 84.6% | -5.5% | 16.9% | 6.1% | -16.9% |
|---|
| Ifb Industries ($IFBIND) | | 18.1% | 14.1% | 11.5% | 23.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Value Industries ($VALUEIND) | 12.3% | 8.1% | 6.9% | 7.8% | |
| Khaitan Electricals ($KHAITANELE) | 6.2% | 2.6% | 6.1% | 2.8% | |
| Panasonic Appliances India Company ($PANASONIC) | 3.8% | -3.5% | -3.5% | 2.0% | |
| |
|---|
| Median (3 companies) | 6.2% | 2.6% | 6.1% | 2.8% | |
|---|
| Ifb Industries ($IFBIND) | 9.4% | 6.2% | 5.6% | 5.9% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 6.2% | 5.4% | 0.3% | 2.0% | |
| |
|---|
| Median (1 company) | 6.2% | 2.9% | 0.3% | 2.0% | |
|---|
| Ifb Industries ($IFBIND) | 7.0% | 7.3% | 5.7% | 5.7% | 6.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 12.5% | -22.0% | -20.1% | -0.6% | |
| Khaitan Electricals ($KHAITANELE) | 7.8% | 2.6% | 8.1% | | |
| Value Industries ($VALUEIND) | | | | | |
| |
|---|
| Median (3 companies) | 10.1% | -9.7% | -6.0% | -0.6% | |
|---|
| Ifb Industries ($IFBIND) | 28.1% | 14.4% | 11.0% | 9.9% | 11.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 2.5x | | | 11.3x | |
| Value Industries ($VALUEIND) | 6.6x | 0.0x | 0.0x | 0.0x | |
| Khaitan Electricals ($KHAITANELE) | 8.3x | 22.8x | 6.9x | 0.0x | |
| |
|---|
| Median (3 companies) | 6.6x | 11.4x | 3.5x | 0.0x | |
|---|
| Ifb Industries ($IFBIND) | -0.4x | -1.1x | -0.7x | -0.3x | -0.1x |
