Munjal Auto Industries Net Income dropped on 20.2% in 2015 while Revenue increased on 8.8%
29-05-2015 • About Munjal Auto Industries (
$MUNJALAU) • By InTwits
Munjal Auto Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.8% in FY2015 vs. 7.8% in FY2014 vs. 8.5% in FY2011
- Munjal Auto Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 5.6%.
- CAPEX is quite volatile: 416 in FY2015, 544 in FY2014, 141 in FY2013, 171 in FY2012, 435 in FY2011
- The company has highly profitable business model: ROIC is at 19.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Munjal Auto Industries ($MUNJALAU) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,199 | 6,799 | 7,173 | 8,165 | 8,883 | 8.8% |
| EBITDA | 442 | 625 | 540 | 638 | 689 | 7.9% |
| Net Income | 248 | 443 | 395 | 477 | 380 | -20.2% |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 61 | 95 | 24 | -75.0% |
| Short Term Debt | 74 | 51 | 55 | 245 | 212 | -13.3% |
| Long Term Debt | 544 | 488 | 456 | 576 | 589 | 2.3% |
Cash flow
|
|---|
| Capex | 435 | 171 | 141 | 544 | 416 | -23.5% |
Ratios
|
|---|
| Revenue growth | -50.8% | 30.8% | 5.5% | 13.8% | 8.8% | |
| EBITDA growth | 60.3% | 41.4% | -13.5% | 18.2% | 7.9% | |
| EBITDA Margin | 8.5% | 9.2% | 7.5% | 7.8% | 7.8% | -0.1% |
| Net Income Margin | 4.8% | 6.5% | 5.5% | 5.8% | 4.3% | -1.6% |
| CAPEX, % of revenue | 8.4% | 2.5% | 2.0% | 6.7% | 4.7% | -2.0% |
| ROIC | 26.3% | 30.6% | 21.5% | 21.1% | 19.0% | -2.2% |
| ROE | 29.3% | 40.6% | 28.3% | 28.1% | 19.3% | -8.7% |
| Net Debt/EBITDA | 1.4x | 0.9x | 0.8x | 1.1x | 1.1x | -0.0x |
Revenue and profitability
Munjal Auto Industries's Revenue increased on 8.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.3 pp from 30.7% to 9.5% in FY2015.
Net Income marign decreased slightly on 1.6 pp from 5.8% to 4.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.7% in FY2015. CAPEX/Revenue increased on 2.2 pp from 2.5% in FY2012 to 4.7% in FY2015. It's average CAPEX/Revenue for the last three years was 4.4%.Munjal Auto Industries maintained rich investment policy and has spent a big chunk of EBITDA (60.5%) to CAPEX.
Return on investment
The company operates at good ROIC (18.96%) and ROE (19.34%). ROIC decreased on 2.2 pp from 21.1% to 19.0% in FY2015. ROE decreased on 8.7 pp from 28.1% to 19.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.2x. Net Debt / EBITDA decreased slightly on 0.0075x from 1.1x to 1.1x in FY2015. Debt decreased on 2.4% in FY2015 while cash dropped on 75.0% in FY2015.
Valuation
Munjal Auto Industries's trades at EV/EBITDA 6.7x and P/E 10.1x while industy averages are 10.5x and 26.1x. Munjal Auto Industries's EV/(EBITDA-CAPEX) is 17.0x with the industry average at 4.7x.
Appendix 1: Peers in Auto Parts & Equipment
Below you can find Munjal Auto Industries benchmarking vs. other companies in Auto Parts & Equipment 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 |
|---|
| India Nippon Electricals ($INDNIPPON) | | 13.6% | 3.2% | -2.4% | 24.8% |
| Amara Raja Batteries ($AMARAJABAT) | | 34.3% | 25.1% | 16.1% | 22.6% |
| Enkei Wheels (India) ($ENKEIWHEL) | | 16.9% | 1.3% | 11.7% | 21.6% |
| Ip Rings ($IPRINGLTD) | | 4.0% | 2.4% | -0.1% | 19.5% |
| Exide Industries ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| |
|---|
| Median (31 companies) | -15.5% | 16.9% | 2.4% | 4.9% | 8.6% |
|---|
| Munjal Auto Industries ($MUNJALAU) | | 30.8% | 5.5% | 13.8% | 8.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 33.7% | 18.4% | 24.4% | 28.3% | 30.0% |
| Shivam Autotech ($SHIVAMAUTO) | 23.2% | 24.1% | 24.1% | 20.6% | 18.7% |
| Amara Raja Batteries ($AMARAJABAT) | 15.0% | 14.9% | 15.7% | 14.2% | 17.0% |
| Suprajit Engineering ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | 16.2% |
| Amtek Auto ($AMTEKAUTO) | | 25.1% | | 20.7% | 14.8% |
| |
|---|
| Median (35 companies) | 10.9% | 11.1% | 9.9% | 10.8% | 10.3% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 8.5% | 9.2% | 7.5% | 7.8% | 7.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amtek Auto ($AMTEKAUTO) | | 18.9% | | 27.1% | 30.3% |
| Jbm Auto ($JBMA) | 18.1% | 9.8% | 8.4% | | 14.4% |
| Rico Auto Industries ($RICOAUTO) | 9.5% | 5.8% | 10.9% | 5.7% | 14.2% |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 11.6% | 4.1% | 4.9% | 12.5% |
| Amara Raja Batteries ($AMARAJABAT) | 2.9% | 3.7% | 2.5% | 10.9% | 9.6% |
| |
|---|
| Median (24 companies) | 7.6% | 5.8% | 4.7% | 4.8% | 4.8% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 8.4% | 2.5% | 2.0% | 6.7% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 30.5% | 32.1% | 34.5% | 30.3% | 35.4% |
| Exide Industries ($EXIDEIND) | 34.2% | 24.2% | 24.3% | 29.5% | 26.9% |
| Suprajit Engineering ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | 22.9% |
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | 24.9% |
| |
|---|
| Median (48 companies) | 15.2% | 15.7% | 11.8% | 12.7% | 13.4% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 26.3% | 30.6% | 21.5% | 21.1% | 19.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x |
| Autoline Industries ($AUTOIND) | 3.1x | 3.2x | 4.0x | 12.0x | |
| Reil Electricals India ($REILELEC) | -0.1x | -0.0x | 1.5x | 9.1x | 0.0x |
| Steel Strips Wheels ($SSWL) | 4.6x | 5.4x | 6.3x | 6.5x | 5.6x |
| Automotive Stampings & Assemblies ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.2x | 1.3x | 2.2x | 0.7x | 1.0x |
|---|
| Munjal Auto Industries ($MUNJALAU) | 1.4x | 0.9x | 0.8x | 1.1x | 1.1x |
