Revathi Equipment reports 58.2% EBITDA growth and 5.2 pp EBITDA Margin growth from 7.4% to 12.7%
29-05-2015 • About Revathi Equipment (
$REVATHI) • By InTwits
Revathi Equipment reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Revathi Equipment is a company in decline: FY2015 revenue growth was -7.2%, 5 years revenue CAGR was -3.1%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Revathi Equipment ($REVATHI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,181 | 1,989 | 2,193 | 1,758 | 1,631 | -7.2% |
| EBITDA | 231 | 99 | 245 | 130 | 206 | 58.2% |
| Net Income | 76 | -38 | 35 | -126 | 39 | |
Balance Sheet
|
|---|
| Cash | 50 | 53 | 120 | | 99 | |
| Short Term Debt | 586 | 938 | 806 | | 547 | |
| Long Term Debt | 77 | 5 | 4 | | 104 | |
Cash flow
|
|---|
| Capex | 8 | 40 | | | 17 | |
Ratios
|
|---|
| Revenue growth | 14.4% | -8.8% | 10.3% | -19.9% | -7.2% | |
| EBITDA growth | 24.6% | -57.1% | 147.8% | -46.8% | 58.2% | |
| EBITDA Margin | 10.6% | 5.0% | 11.2% | 7.4% | 12.7% | 5.2% |
| Net Income Margin | 3.5% | -1.9% | 1.6% | -7.2% | 2.4% | 9.6% |
| CAPEX, % of revenue | 0.4% | 2.0% | | | 1.0% | 1.0% |
| ROIC | 5.0% | 1.8% | 9.0% | | | 0.0% |
| ROE | 6.0% | -3.0% | 2.7% | | | 0.0% |
| Net Debt/EBITDA | 2.7x | 9.0x | 2.8x | 0.0x | 2.7x | 2.7x |
Revenue and profitability
Revathi Equipment's Revenue decreased on 7.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.2 pp from 7.4% to 12.7% in FY2015.
Net Income marign increased on 9.6 pp from -7.2% to 2.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Revathi Equipment had CAPEX/Revenue of 1.0%. The company's CAPEX/Revenue decreased slightly on 0.95 pp from 2.0% in FY2012 to 1.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 3.2x. Net Debt / EBITDA jumped2.7x from 0x to 2.7x in FY2015. Debt jumped while cash jumped.
Valuation
Revathi Equipment's trades at EV/EBITDA 7.7x and P/E 26.5x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Industrial Machinery
Below you can find Revathi Equipment 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 ($ABCBEARS) | | -13.0% | -15.5% | -6.6% | 15.7% |
| |
|---|
| Median (21 companies) | -7.1% | 20.1% | 2.1% | 4.0% | 3.7% |
|---|
| Revathi Equipment ($REVATHI) | | -8.8% | 10.3% | -19.9% | -7.2% |
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% | 9.4% | 10.5% | 10.2% |
|---|
| Revathi Equipment ($REVATHI) | 10.6% | 5.0% | 11.2% | 7.4% | 12.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Texmaco Infrastructure & Holdings ($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% | 5.8% | 3.8% | 2.9% | 3.3% |
|---|
| Revathi Equipment ($REVATHI) | 0.4% | 2.0% | | | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rexnord Electronics & Controls ($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) | 15.2% | 13.1% | 10.9% | 9.2% | 12.5% |
|---|
| Revathi Equipment ($REVATHI) | 5.0% | 1.8% | 9.0% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forbes & Company ($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 (30 companies) | 1.1x | 0.6x | 1.5x | 0.0x | 0.0x |
|---|
| Revathi Equipment ($REVATHI) | 2.7x | 9.0x | 2.8x | 0.0x | 2.7x |
