Opto Circuits (India) Net Income dropped on 272% in 2015 while EBITDA Margin increased slightly on 1.4 pp from 18.8% to 20.2%
29-05-2015 • About Opto Circuits (India) (
$OPTOCIRCUI) • By InTwits
Opto Circuits (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Opto Circuits (India) is a company in decline: FY2015 revenue growth was -15.7%, 5 years revenue CAGR was -3.5%
- Opto Circuits (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 0 in FY2015, 191 in FY2014, 1,055 in FY2013, 3,342 in FY2012, 2,278 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.8%
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is 3.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Opto Circuits (India) ($OPTOCIRCUI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,868 | 23,569 | 23,994 | 14,080 | 11,868 | -15.7% |
| EBITDA | 4,717 | 6,229 | 5,905 | 2,641 | 2,397 | -9.2% |
| Net Income | 3,672 | 5,719 | 3,798 | 910 | -1,564 | -271.9% |
Balance Sheet
|
|---|
| Cash | 2,295 | 1,662 | 406 | 176 | 238 | 35.3% |
| Short Term Debt | 6,296 | 7,645 | 12,278 | 13,873 | 17,727 | 27.8% |
| Long Term Debt | 2,625 | 2,969 | 2,257 | 1,924 | 185 | -90.4% |
Cash flow
|
|---|
| Capex | 2,278 | 3,342 | 1,055 | 191 | 0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 11.9% | 48.5% | 1.8% | -41.3% | -15.7% | |
| EBITDA growth | 27.7% | 32.1% | -5.2% | -55.3% | -9.2% | |
| EBITDA Margin | 29.7% | 26.4% | 24.6% | 18.8% | 20.2% | 1.4% |
| Net Income Margin | 23.1% | 24.3% | 15.8% | 6.5% | -13.2% | -19.6% |
| CAPEX, % of revenue | 14.4% | 14.2% | 4.4% | 1.4% | 0.0% | -1.4% |
| ROIC | 22.1% | 22.6% | 15.7% | 5.0% | 3.8% | -1.2% |
| ROE | 30.4% | 37.3% | 20.1% | 4.2% | -7.5% | -11.7% |
| Net Debt/EBITDA | 1.4x | 1.4x | 2.4x | 5.9x | 7.4x | 1.5x |
Revenue and profitability
The company's Revenue dropped on 15.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.4 pp from 18.8% to 20.2% in FY2015.
Net Income marign dropped on 19.6 pp from 6.5% to -13.2% in FY2015.
Return on investment
The company operates at low but positive ROIC (3.79%) and negative ROE (-7.48%). ROIC decreased slightly on 1.2 pp from 5.0% to 3.8% in FY2015. ROE dropped on 11.7 pp from 4.2% to -7.5% in FY2015.
Leverage (Debt)
Debt level is 7.4x Net Debt / EBITDA and 7.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.5x from 5.9x to 7.4x in FY2015. Debt surged on 13.4% in FY2015 while cash surged on 35.3% in FY2015.
Appendix 1: Peers in Medical Equipment
Below we provide Opto Circuits (India) benchmarking against other companies in Medical Equipment 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 ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Centenial Surgical Suture ($CSURGSU) | | | | | |
| |
|---|
| Median (1 company) | | | | | |
|---|
| Opto Circuits (India) ($OPTOCIRCUI) | 22.1% | 22.6% | 15.7% | 5.0% | 3.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Centenial Surgical Suture ($CSURGSU) | 0.0x | 2.1x | 0.0x | 0.0x | |
| |
|---|
| Median (1 company) | 0.0x | 2.1x | 0.0x | 0.0x | |
|---|
| Opto Circuits (India) ($OPTOCIRCUI) | 1.4x | 1.4x | 2.4x | 5.9x | 7.4x |
