Jyoti Structures Net Debt / EBITDA surged on 82.4x from 5.7x to 88.2x in 2015 while EBITDA dropped on 86.9%
31-05-2015 • About Jyoti Structures (
$JYOTISTRUC) • By InTwits
Jyoti Structures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jyoti Structures is a company in decline: FY2015 revenue growth was -14.4%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is declining: 1.0% in FY2015 vs. 6.6% in FY2014 vs. 12.9% in FY2011
- EBITDA Margin is quite volatile: 1.0% in FY2015, 6.6% in FY2014, 10.8% in FY2013, 13.4% in FY2012, 12.9% in FY2011
- Jyoti Structures has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 10.3%.
- CAPEX is quite volatile: 359 in FY2015, 504 in FY2014, 639 in FY2013, 2,324 in FY2012, 493 in FY2011
- The company has unprofitable business model: ROIC is at -0.8%
- It operates with high leverage: Net Debt/EBITDA is 88.2x while industry average is 8.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jyoti Structures ($JYOTISTRUC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 23,996 | 27,661 | 30,127 | 36,360 | 31,114 | -14.4% |
| EBITDA | 3,091 | 3,715 | 3,265 | 2,411 | 316 | -86.9% |
| Net Income | 998 | 964 | 378 | -94 | -3,958 | |
Balance Sheet
|
|---|
| Cash | 672 | 591 | 394 | 891 | 1,299 | 45.8% |
| Short Term Debt | 2,396 | 5,974 | 8,723 | 11,050 | 14,886 | 34.7% |
| Long Term Debt | 2,405 | 3,462 | 3,300 | 3,684 | 14,281 | 287.6% |
Cash flow
|
|---|
| Capex | 493 | 2,324 | 639 | 504 | 359 | -28.8% |
Ratios
|
|---|
| Revenue growth | -35.2% | 15.3% | 8.9% | 20.7% | -14.4% | |
| EBITDA growth | 24.1% | 20.2% | -12.1% | -26.1% | -86.9% | |
| EBITDA Margin | 12.9% | 13.4% | 10.8% | 6.6% | 1.0% | -5.6% |
| Net Income Margin | 4.2% | 3.5% | 1.3% | -0.3% | -12.7% | -12.5% |
| CAPEX, % of revenue | 2.1% | 8.4% | 2.1% | 1.4% | 1.2% | -0.2% |
| ROIC | 26.3% | 25.2% | 16.3% | 9.5% | -0.8% | -10.3% |
| ROE | 18.7% | 15.7% | 5.7% | -1.4% | -74.1% | -72.7% |
| Net Debt/EBITDA | 1.3x | 2.4x | 3.6x | 5.7x | 88.2x | 82.4x |
Revenue and profitability
The company's Revenue dropped on 14.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 6.6% to 1.0% in FY2015.
Net Income marign dropped on 12.5 pp from -0.26% to -12.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.2%. The company showed decline in CAPEX/Revenue of 7.2 pp from 8.4% in FY2012 to 1.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.6%.The company has spent a lot to CAPEX (114% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.77%) and ROE (-74.11%). ROIC dropped on 10.3 pp from 9.5% to -0.77% in FY2015. ROE dropped on 72.7 pp from -1.4% to -74.1% in FY2015.
Leverage (Debt)
Debt level is 88.2x Net Debt / EBITDA and 92.3x Debt / EBITDA. Net Debt / EBITDA jumped on 82.4x from 5.7x to 88.2x in FY2015. Debt surged on 98.0% in FY2015 while cash surged on 45.8% in FY2015.
Appendix 1: Peers in Heavy Electrical Equipment
Below we provide Jyoti Structures benchmarking against other companies in Heavy Electrical Equipment 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Swelect Energy Systems ($SWELECTES) | | 17.5% | -70.6% | -0.0% | 25.7% |
| T D Power Systems ($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. ($TECHNO) | | 13.6% | -15.7% | 1.7% | 12.6% |
| |
|---|
| Median (15 companies) | | 13.6% | -9.8% | 1.7% | 2.0% |
|---|
| Jyoti Structures ($JYOTISTRUC) | | 15.3% | 8.9% | 20.7% | -14.4% |
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 (14 companies) | 12.4% | 8.9% | 8.8% | 6.8% | 8.4% |
|---|
| Jyoti Structures ($JYOTISTRUC) | 12.9% | 13.4% | 10.8% | 6.6% | 1.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sterlite Technologies ($STRTECH) | 19.8% | 24.9% | 47.2% | 64.9% | 37.4% |
| Swelect Energy Systems ($SWELECTES) | 2.9% | 5.1% | 42.5% | 50.8% | 21.8% |
| Transformers And Rectifiers (India) ($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% |
| |
|---|
| Median (14 companies) | 5.4% | 5.1% | 3.6% | 2.6% | 3.0% |
|---|
| Jyoti Structures ($JYOTISTRUC) | 2.1% | 8.4% | 2.1% | 1.4% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alstom India ($AIL) | 44.3% | 27.2% | 25.6% | 13.2% | 10.7% |
| Ujaas Energy ($UJAAS) | 10.6% | 0.0% | 28.5% | 33.7% | 10.2% |
| Techno Electric & Engineering Company ($TECHELE) | 17.4% | 15.5% | 12.6% | 9.3% | 10.2% |
| Techno Electric And Engineering Co. ($TECHNO) | 17.4% | 15.5% | 12.6% | 9.3% | 10.2% |
| Emco ($EMCO) | -3.0% | 4.3% | 6.1% | 7.4% | 6.1% |
| |
|---|
| Median (16 companies) | 17.4% | 14.1% | 6.3% | 8.3% | 4.3% |
|---|
| Jyoti Structures ($JYOTISTRUC) | 26.3% | 25.2% | 16.3% | 9.5% | -0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Suzlon Energy ($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 (14 companies) | 1.0x | 1.6x | 2.6x | 2.5x | 2.6x |
|---|
| Jyoti Structures ($JYOTISTRUC) | 1.3x | 2.4x | 3.6x | 5.7x | 88.2x |
