Superhouse reports 200% CAPEX growth and 6.3% Revenue growth
30-05-2015 • About Superhouse (
$SUPERHOUSE) • By InTwits
Superhouse reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Superhouse has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 537 in FY2015, 179 in FY2014, 265 in FY2013, 290 in FY2012, 240 in FY2011
- The company has highly profitable business model: ROIC is at 15.1%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Superhouse ($SUPERHOUSE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,533 | 5,351 | 5,876 | 7,530 | 8,001 | 6.3% |
| EBITDA | 428 | 580 | 585 | 882 | 822 | -6.9% |
| Net Income | 179 | 244 | 223 | 371 | 357 | -3.7% |
Balance Sheet
|
|---|
| Cash | 79 | 117 | 76 | 120 | 167 | 39.7% |
| Short Term Debt | 7 | 1,040 | 1,300 | 1,556 | 1,965 | 26.3% |
| Long Term Debt | 1,183 | 316 | 378 | 369 | 351 | -4.9% |
Cash flow
|
|---|
| Capex | 240 | 290 | 265 | 179 | 537 | 200.2% |
Ratios
|
|---|
| Revenue growth | -50.6% | 18.1% | 9.8% | 28.1% | 6.3% | |
| EBITDA growth | 1.5% | 35.8% | 0.8% | 50.8% | -6.9% | |
| EBITDA Margin | 9.4% | 10.8% | 10.0% | 11.7% | 10.3% | -1.4% |
| Net Income Margin | 3.9% | 4.6% | 3.8% | 4.9% | 4.5% | -0.5% |
| CAPEX, % of revenue | 5.3% | 5.4% | 4.5% | 2.4% | 6.7% | 4.3% |
| ROIC | 13.4% | 16.7% | 14.1% | 19.2% | 15.1% | -4.2% |
| ROE | 14.0% | 16.6% | 13.2% | 19.0% | 15.6% | -3.4% |
| Net Debt/EBITDA | 2.6x | 2.1x | 2.7x | 2.0x | 2.6x | 0.6x |
Revenue and profitability
Superhouse's Revenue increased on 6.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Superhouse had CAPEX/Revenue of 6.7%. Superhouse showed small growth in CAPEX/Revenue of 1.3 pp from 5.4% in FY2012 to 6.7% in FY2015. It's average CAPEX/Revenue for the last three years was 4.5%.The company maintained rich investment policy and has spent a big chunk of EBITDA (65.4%) to CAPEX.
Return on investment
The company operates at good ROIC (15.05%) and ROE (15.60%). ROIC decreased on 4.2 pp from 19.2% to 15.1% in FY2015. ROE decreased on 3.4 pp from 19.0% to 15.6% in FY2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from 2.0x to 2.6x in FY2015. Debt surged on 20.3% in FY2015 while cash jumped on 39.7% in FY2015.
Appendix 1: Peers in Footwear
Below we provide Superhouse benchmarking against other companies in Footwear 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 Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Relaxo Footwears ($RELAXO) | | 25.0% | 16.8% | 20.0% | 22.2% |
| |
|---|
| Median (1 company) | | 25.0% | 16.8% | 20.0% | 22.2% |
|---|
| Superhouse ($SUPERHOUSE) | | 18.1% | 9.8% | 28.1% | 6.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sreeleathers ($SREEL2) | | | | | 21.4% |
| Relaxo Footwears ($RELAXO) | 10.5% | 11.2% | 10.9% | 12.2% | 13.6% |
| |
|---|
| Median (2 companies) | 10.5% | 11.2% | 10.9% | 12.2% | 17.5% |
|---|
| Superhouse ($SUPERHOUSE) | 9.4% | 10.8% | 10.0% | 11.7% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Relaxo Footwears ($RELAXO) | 9.1% | 5.6% | 8.3% | 5.9% | 8.9% |
| Sreeleathers ($SREEL2) | | | | | 0.1% |
| |
|---|
| Median (2 companies) | 9.1% | 5.6% | 8.3% | 5.9% | 4.5% |
|---|
| Superhouse ($SUPERHOUSE) | 5.3% | 5.4% | 4.5% | 2.4% | 6.7% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Relaxo Footwears ($RELAXO) | 17.4% | 21.2% | 19.9% | 24.1% | 28.3% |
| Sreeleathers ($SREEL2) | | | | 5.7% | 6.7% |
| Nb Footwear ($NBFOOT) | -23.3% | | | | |
| |
|---|
| Median (3 companies) | -3.0% | 21.2% | 19.9% | 14.9% | 17.5% |
|---|
| Superhouse ($SUPERHOUSE) | 13.4% | 16.7% | 14.1% | 19.2% | 15.1% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Relaxo Footwears ($RELAXO) | 2.1x | 1.8x | 2.0x | 1.3x | 1.2x |
| Sreeleathers ($SREEL2) | | | -0.1x | -0.5x | -0.4x |
| |
|---|
| Median (2 companies) | 2.1x | 1.8x | 1.0x | 0.4x | 0.4x |
|---|
| Superhouse ($SUPERHOUSE) | 2.6x | 2.1x | 2.7x | 2.0x | 2.6x |
