Swelect Energy Systems Net Income dropped on 102% in 2015 and EBITDA Margin decreased slightly on 1.5 pp from 4.9% to 3.5%
29-05-2015 • About Swelect Energy Systems (
$SWELECTES) • By InTwits
Swelect Energy Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Swelect Energy Systems doesn't have a profitable business model yet: FY2015 ROIC is -1.1%
- EBITDA Margin is quite volatile: 3.5% in FY2015, 4.9% in FY2014, 3.6% in FY2013, 9.4% in FY2012, 11.3% in FY2011
- Swelect Energy Systems has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.6%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 483 in FY2015, 897 in FY2014, 750 in FY2013, 307 in FY2012, 150 in FY2011
- The company has unprofitable business model: ROIC is at -1.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Swelect Energy Systems ($SWELECTES) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,102 | 5,995 | 1,765 | 1,764 | 2,218 | 25.7% |
| EBITDA | 575 | 563 | 64 | 87 | 77 | -12.0% |
| Net Income | 410 | 348 | 5,209 | 162 | -4 | -102.3% |
Balance Sheet
|
|---|
| Cash | 192 | 159 | 385 | 578 | 2,008 | 247.1% |
| Short Term Debt | 435 | 347 | 421 | 259 | 441 | 70.2% |
| Long Term Debt | 56 | 73 | 47 | 753 | 947 | 25.8% |
Cash flow
|
|---|
| Capex | 150 | 307 | 750 | 897 | 483 | -46.1% |
Ratios
|
|---|
| Revenue growth | 100.3% | 17.5% | -70.6% | -0.0% | 25.7% | |
| EBITDA growth | 12.4% | -2.1% | -88.6% | 36.4% | -12.0% | |
| EBITDA Margin | 11.3% | 9.4% | 3.6% | 4.9% | 3.5% | -1.5% |
| Net Income Margin | 8.0% | 5.8% | 295.2% | 9.2% | -0.2% | -9.3% |
| CAPEX, % of revenue | 2.9% | 5.1% | 42.5% | 50.8% | 21.8% | -29.0% |
| ROIC | 19.5% | 15.2% | -0.2% | -0.2% | -1.1% | -1.0% |
| ROE | 17.3% | 12.7% | 108.8% | 2.4% | -0.1% | -2.5% |
| Net Debt/EBITDA | 0.5x | 0.5x | 1.3x | 5.0x | -8.1x | -13.0x |
Revenue and profitability
Swelect Energy Systems's Revenue jumped on 25.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 43.8% to 39.4% in FY2015.
Net Income marign decreased on 9.3 pp from 9.2% to -0.17% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Swelect Energy Systems had CAPEX/Revenue of 21.8%. The company showed fast CAPEX/Revenue growth of 16.7 pp from 5.1% in FY2012 to 21.8% in FY2015. It's average CAPEX/Revenue for the last three years was 38.4%.To fuel this fast growth Swelect Energy Systems made large investments to CAPEX (630% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.13%) and ROE (-0.06%). ROIC decreased slightly on 0.97 pp from -0.17% to -1.1% in FY2015. ROE decreased on 2.5 pp from 2.4% to -0.055% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -8.1x and Debt / EBITDA is 18.1x. Net Debt / EBITDA dropped on 13.0x from 5.0x to -8.1x in FY2015. Debt jumped on 37.2% in FY2015 while cash surged on 247% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find Swelect Energy Systems benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| T D Power Systems ($TDPOWERSYS) | | 19.4% | -43.1% | -18.2% | 24.4% |
| Sterlite Technologies ($STRTECH) | | 15.9% | 17.9% | -17.1% | 20.8% |
| Voltamp Transformers ($VOLTAMP) | | 4.3% | -7.7% | -13.7% | 16.2% |
| Techno Electric And Engineering Co. ($TECHNO) | | 13.6% | -15.7% | 1.7% | 12.6% |
| Techno Electric & Engineering Company ($TECHELE) | | 13.6% | -15.7% | 1.7% | 12.6% |
| |
|---|
| Median (13 companies) | 4.1% | 13.6% | -7.7% | 1.7% | 2.0% |
|---|
| Swelect Energy Systems ($SWELECTES) | | 17.5% | -70.6% | -0.0% | 25.7% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 30.3% | 33.2% | 27.2% | 28.6% | 31.3% |
| |
|---|
| Median (1 company) | 30.3% | 33.2% | 27.2% | 28.6% | 31.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 9.3% | 1.2% | 18.7% | 17.4% | 38.1% |
| Techno Electric And Engineering Co. ($TECHNO) | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% |
| Techno Electric & Engineering Company ($TECHELE) | 23.3% | 27.0% | 34.5% | 28.5% | 26.5% |
| Sterlite Technologies ($STRTECH) | 11.8% | 7.5% | 7.5% | 10.8% | 15.0% |
| Emco ($EMCO) | -1.0% | 7.4% | 9.5% | 11.3% | 9.3% |
| |
|---|
| Median (13 companies) | 12.5% | 8.9% | 8.8% | 6.8% | 8.4% |
|---|
| Swelect Energy Systems ($SWELECTES) | 11.3% | 9.4% | 3.6% | 4.9% | 3.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Transformers And Rectifiers (India) ($TRIL) | 2.5% | 5.7% | 8.4% | 2.8% | 5.8% |
| T D Power Systems ($TDPOWERSYS) | 1.5% | 3.7% | 14.5% | 15.1% | 3.8% |
| Suzlon Energy ($SUZLON) | 4.6% | 4.2% | 3.7% | 3.4% | 3.7% |
| Crompton Greaves ($CROMPGREAV) | 7.5% | 3.3% | 1.8% | 2.2% | 3.6% |
| |
|---|
| Median (13 companies) | 5.4% | 5.7% | 3.0% | 2.3% | 2.5% |
|---|
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | 21.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% |
| Alstom India ($AIL) | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% |
| Bharat Heavy Electricals ($BHEL) | 46.1% | 41.5% | 29.5% | 10.3% | 4.0% |
| Crompton Greaves ($CROMPGREAV) | 32.5% | 12.9% | 3.5% | 10.1% | 4.1% |
| Bgr Energy Systems ($BGRENERGY) | 25.9% | 15.5% | 11.9% | 9.7% | 2.8% |
| |
|---|
| Median (17 companies) | 17.4% | 14.2% | 7.1% | 9.3% | 4.5% |
|---|
| Swelect Energy Systems ($SWELECTES) | 19.5% | 15.2% | -0.2% | -0.2% | -1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($SUZLON) | 9.7x | 6.1x | | 87.6x | 19.1x |
| Bgr Energy Systems ($BGRENERGY) | 1.9x | 2.6x | 3.5x | 4.1x | 13.0x |
| Sterlite Technologies ($STRTECH) | 2.8x | 4.6x | 10.2x | 15.4x | 11.1x |
| Emco ($EMCO) | | 8.1x | 7.3x | 5.7x | 7.3x |
| Transformers And Rectifiers (India) ($TRIL) | 0.8x | -0.9x | 4.2x | 4.1x | 4.8x |
| |
|---|
| Median (13 companies) | 1.3x | 2.5x | 3.0x | 2.5x | 2.6x |
|---|
| Swelect Energy Systems ($SWELECTES) | 0.5x | 0.5x | 1.3x | 5.0x | -8.1x |
