Diamond Power Infrastructure Net Debt / EBITDA jumped on 42.0x from 4.8x to 46.8x in 2015 while Revenue dropped on 12.8%
31-05-2015 • About Diamond Power Infrastructure (
$DIAPOWER) • By InTwits
Diamond Power Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Diamond Power Infrastructure is a company in decline: FY2015 revenue growth was -12.8%, 5 years revenue CAGR was -2.8%
- EBITDA Margin is quite volatile: 1.5% in FY2015, 8.9% in FY2014, 8.8% in FY2013, 11.1% in FY2012, 12.2% in FY2011
- The company has unprofitable business model: ROIC is at -0.4%
- It operates with high leverage: Net Debt/EBITDA is 46.8x while industry average is 5.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Diamond Power Infrastructure ($DIAPOWER) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,209 | 20,182 | 25,813 | 31,776 | 27,723 | -12.8% |
| SG&A | | | | 193 | 15 | -92.3% |
| EBITDA | 1,854 | 2,240 | 2,280 | 2,820 | 416 | -85.2% |
| Net Income | 1,104 | 1,256 | 1,041 | 1,109 | -1,844 | -266.3% |
Balance Sheet
|
|---|
| Cash | 107 | 155 | 325 | 81 | 643 | 696.4% |
| Short Term Debt | 1,604 | 3,923 | 5,634 | 6,403 | 8,789 | 37.3% |
| Long Term Debt | 3,052 | 3,657 | 6,520 | 7,129 | 11,347 | 59.2% |
Cash flow
|
|---|
| Capex | | | 1,765 | 2,668 | 2,409 | -9.7% |
Ratios
|
|---|
| Revenue growth | -52.4% | 32.7% | 27.9% | 23.1% | -12.8% | |
| EBITDA growth | 58.6% | 20.8% | 1.8% | 23.7% | -85.2% | |
| EBITDA Margin | 12.2% | 11.1% | 8.8% | 8.9% | 1.5% | -7.4% |
| Net Income Margin | 7.3% | 6.2% | 4.0% | 3.5% | -6.7% | -10.1% |
| SG&A, % of revenue | | | | 0.6% | 0.1% | -0.6% |
| CAPEX, % of revenue | | | 6.8% | 8.4% | 8.7% | 0.3% |
| ROIC | 19.6% | 16.1% | 11.7% | 11.3% | -0.4% | -11.7% |
| ROE | 25.7% | 20.9% | 14.8% | 12.8% | -20.2% | -32.9% |
| Net Debt/EBITDA | 2.5x | 3.3x | 5.2x | 4.8x | 46.8x | 42.0x |
Revenue and profitability
Diamond Power Infrastructure's Revenue dropped on 12.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.89 pp from 11.7% to 12.5% in FY2015.
SG&A as a % of Revenue decreased slightly on 0.55 pp from 0.61% to 0.054% in FY2015.
Net Income marign dropped on 10.1 pp from 3.5% to -6.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Diamond Power Infrastructure's CAPEX/Revenue was 8.7% in FY2015. Diamond Power Infrastructure showed CAPEX/Revenue growth8.7 pp from in FY2012 to 8.7% in FY2015. Average CAPEX/Revenue for the last three years was 8.0%.Diamond Power Infrastructure has spent a lot to CAPEX (578% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.35%) and ROE (-20.15%). ROIC dropped on 11.7 pp from 11.3% to -0.35% in FY2015. ROE dropped on 32.9 pp from 12.8% to -20.2% in FY2015.
Leverage (Debt)
Debt level is 46.8x Net Debt / EBITDA and 48.4x Debt / EBITDA. Net Debt / EBITDA jumped on 42.0x from 4.8x to 46.8x in FY2015. Debt surged on 48.8% in FY2015 while cash jumped on 696% in FY2015.
Appendix 1: Peers in Other Elect.Equip./ Prod.
Below you can find Diamond Power Infrastructure benchmarking vs. other companies in Other Elect.Equip./ Prod. 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 |
|---|
| Indosolar ($INDOSOLAR) | | -85.0% | -34.7% | -71.0% | 1,797.0% |
| B.C. Power Controls ($BCP) | | 129.0% | -2.2% | 2.2% | 115.3% |
| Ece Industries ($ECEIND) | | 2.8% | -30.9% | -14.8% | 58.1% |
| Pitti Laminations ($PITTILAM) | | 60.4% | -23.9% | -19.4% | 35.9% |
| Genus Power Infrastructures ($GENUSPOWER) | | -1.2% | -7.5% | 17.4% | 19.5% |
| |
|---|
| Median (13 companies) | -0.4% | 12.9% | -2.6% | -9.3% | 10.6% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | | 32.7% | 27.9% | 23.1% | -12.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Malvica Engineering ($MALVICAE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fluidomat ($FLUIDOM) | | | | | 28.0% |
| Indosolar ($INDOSOLAR) | 5.8% | -114.4% | -52.7% | -140.0% | 16.3% |
| Genus Power Infrastructures ($GENUSPOWER) | 14.4% | 14.1% | 11.0% | 13.8% | 13.8% |
| Salzer Electronics ($SALZER) | 14.3% | 12.9% | 12.5% | 12.4% | 12.6% |
| Pitti Laminations ($PITTILAM) | 12.9% | 15.6% | 13.6% | 13.2% | 12.0% |
| |
|---|
| Median (16 companies) | 6.5% | 8.0% | 9.0% | 9.1% | 10.3% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 12.2% | 11.1% | 8.8% | 8.9% | 1.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indosolar ($INDOSOLAR) | 24.2% | 311.2% | 148.3% | 42.3% | 26.9% |
| Easun Reyrolle ($EASUNREYRL) | 19.3% | 26.5% | 30.7% | 19.4% | |
| Salzer Electronics ($SALZER) | 5.7% | 6.8% | 5.6% | 4.1% | 8.2% |
| Birla Ericsson Optical ($BIRLAERIC) | 9.4% | 1.3% | 4.4% | 4.0% | 3.5% |
| Ultracab (India) ($ULTRACAB) | 0.2% | 2.8% | 4.0% | 3.2% | |
| |
|---|
| Median (8 companies) | 5.6% | 3.1% | 4.0% | 3.6% | 2.9% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | | | 6.8% | 8.4% | 8.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Birla Ericsson Optical ($BIRLAERIC) | -6.6% | -2.2% | 8.2% | 27.3% | 16.6% |
| Salzer Electronics ($SALZER) | 14.6% | 14.6% | 12.7% | 13.0% | 14.6% |
| Genus Power Infrastructures ($GENUSPOWER) | 15.2% | 12.4% | 8.0% | 12.2% | 13.5% |
| Hbl Power Systems ($HBLPOWER) | 3.8% | 10.6% | 10.1% | 4.3% | 6.7% |
| Indosolar ($INDOSOLAR) | -2.7% | -14.0% | -6.8% | -5.2% | 2.2% |
| |
|---|
| Median (21 companies) | 8.2% | 8.9% | 8.1% | 7.0% | 6.7% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 19.6% | 16.1% | 11.7% | 11.3% | -0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indosolar ($INDOSOLAR) | 13.8x | | | | 20.3x |
| Hbl Power Systems ($HBLPOWER) | 8.6x | 4.1x | 4.4x | 6.8x | 4.7x |
| Salzer Electronics ($SALZER) | 2.1x | 1.9x | 2.2x | 2.6x | 2.7x |
| Genus Power Infrastructures ($GENUSPOWER) | 2.8x | 3.2x | 3.9x | 2.9x | 2.7x |
| Birla Ericsson Optical ($BIRLAERIC) | | 14.5x | 2.9x | 1.3x | 1.6x |
| |
|---|
| Median (13 companies) | 3.2x | 3.6x | 4.1x | 2.6x | 0.0x |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 2.5x | 3.3x | 5.2x | 4.8x | 46.8x |
