Cmi reports 63.8% EBITDA growth and 29.1% Revenue growth
31-05-2015 • About Cmi (
$CMI) • By InTwits
Cmi reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cmi has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 11.5%.
- CAPEX is quite volatile: 47.2 in FY2015, 6.8 in FY2014, 16.2 in FY2013, 8.0 in FY2012, 6.7 in FY2011
- The company has highly profitable business model: ROIC is at 22.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cmi ($CMI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 590 | 728 | 886 | 1,051 | 1,358 | 29.1% |
| EBITDA | 55 | 66 | 76 | 88 | 144 | 63.8% |
| Net Income | 24 | 22 | 17 | 18 | 63 | 256.5% |
Balance Sheet
|
|---|
| Cash | 24 | 3 | 2 | 2 | 5 | 158.0% |
| Short Term Debt | 0 | 153 | 186 | 260 | 304 | 16.9% |
| Long Term Debt | 182 | 121 | 126 | 116 | 28 | -75.6% |
Cash flow
|
|---|
| Capex | 7 | 8 | 16 | 7 | 47 | 597.5% |
Ratios
|
|---|
| Revenue growth | -61.8% | 23.5% | 21.6% | 18.7% | 29.1% | |
| EBITDA growth | 32.3% | 19.3% | 16.2% | 15.0% | 63.8% | |
| EBITDA Margin | 9.3% | 9.0% | 8.6% | 8.4% | 10.6% | 2.2% |
| Net Income Margin | 4.1% | 3.0% | 1.9% | 1.7% | 4.6% | 3.0% |
| CAPEX, % of revenue | 1.1% | 1.1% | 1.8% | 0.6% | 3.5% | 2.8% |
| ROIC | 17.3% | 16.7% | 16.1% | 16.6% | 22.2% | 5.6% |
| ROE | 30.1% | 21.4% | 14.1% | 13.3% | 24.6% | 11.3% |
| Net Debt/EBITDA | 2.9x | 4.1x | 4.1x | 4.3x | 2.3x | -2.0x |
Revenue and profitability
Cmi's Revenue jumped on 29.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.9 pp from 21.6% to 23.5% in FY2015.
Net Income marign increased on 3.0 pp from 1.7% to 4.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Cmi had CAPEX/Revenue of 3.5%. Cmi showed CAPEX/Revenue growth of 2.4 pp from 1.1% in FY2012 to 3.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at high and attractive ROIC (22.16%) and ROE (24.65%). ROIC increased on 5.6 pp from 16.6% to 22.2% in FY2015. ROE jumped on 11.3 pp from 13.3% to 24.6% in FY2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA dropped on 2.0x from 4.3x to 2.3x in FY2015. Debt dropped on 11.7% in FY2015 while cash jumped on 158% in FY2015.
Appendix 1: Peers in Telecom Cables
Below we provide Cmi benchmarking against other companies in Telecom Cables 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 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | | 25.6% | 35.9% | 29.8% | 49.3% |
| Aksh Optifibre ($AKSHOPTFBR) | | 108.8% | -6.1% | -7.0% | 46.7% |
| Himachal Futuristic Communications ($HFCL) | | | 132.4% | 233.0% | 26.4% |
| |
|---|
| Median (3 companies) | | 67.2% | 35.9% | 29.8% | 46.7% |
|---|
| Cmi ($CMI) | | 23.5% | 21.6% | 18.7% | 29.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | 3.2% | -0.4% | 6.8% | 11.3% | 15.0% |
| Aksh Optifibre ($AKSHOPTFBR) | -6.9% | 11.1% | 14.7% | 14.5% | 13.1% |
| Himachal Futuristic Communications ($HFCL) | | 8.7% | 11.4% | 12.9% | 11.1% |
| |
|---|
| Median (3 companies) | -1.8% | 8.7% | 11.4% | 12.9% | 13.1% |
|---|
| Cmi ($CMI) | 9.3% | 9.0% | 8.6% | 8.4% | 10.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 1.9% | 0.6% | 1.4% | 7.8% | 7.9% |
| Vindhya Telelinks ($VINDHYATEL) | 3.4% | 0.6% | 1.1% | 5.0% | 3.1% |
| Himachal Futuristic Communications ($HFCL) | | 7.9% | 5.9% | 2.3% | 0.7% |
| |
|---|
| Median (3 companies) | 2.6% | 0.6% | 1.4% | 5.0% | 3.1% |
|---|
| Cmi ($CMI) | 1.1% | 1.1% | 1.8% | 0.6% | 3.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Himachal Futuristic Communications ($HFCL) | | | 9.0% | 30.9% | 22.2% |
| Vindhya Telelinks ($VINDHYATEL) | 0.5% | -1.8% | 4.7% | 9.9% | 15.0% |
| Aksh Optifibre ($AKSHOPTFBR) | -6.0% | 4.2% | 5.4% | 4.3% | 5.5% |
| |
|---|
| Median (3 companies) | -6.0% | 1.2% | 5.4% | 9.9% | 15.0% |
|---|
| Cmi ($CMI) | 17.3% | 16.7% | 16.1% | 16.6% | 22.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | 6.7x | | 4.5x | 2.6x | 2.7x |
| Aksh Optifibre ($AKSHOPTFBR) | | 1.0x | 0.4x | 3.9x | 2.5x |
| Himachal Futuristic Communications ($HFCL) | | 17.8x | 5.3x | 1.1x | 1.0x |
| |
|---|
| Median (3 companies) | 6.7x | 9.4x | 4.5x | 2.6x | 2.5x |
|---|
| Cmi ($CMI) | 2.9x | 4.1x | 4.1x | 4.3x | 2.3x |
