Trf EBITDA dropped on 166% in 2015 and Revenue decreased on 4.2%
28-08-2015 • About Trf (
$TRF) • By InTwits
Trf reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Trf is a company in decline: FY2015 revenue growth was -4.2%, 5 years revenue CAGR was -3.3%
- The company operates at negative EBITDA Margin: -0.9%
- EBITDA Margin is quite volatile: -0.9% in FY2015, 1.3% in FY2014, -1.5% in FY2013, 6.3% in FY2012, 2.2% in FY2011
- Trf has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 58.5 in FY2015, 51.4 in FY2014, 124 in FY2013, 204 in FY2012, 320 in FY2011
- The company has unprofitable business model: ROIC is at -3.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Trf ($TRF) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,136 | 13,274 | 11,148 | 11,748 | 11,259 | -4.2% |
| EBITDA | 249 | 839 | -164 | 158 | -104 | -165.6% |
| Net Income | 3 | 132 | -917 | -289 | -650 | |
Balance Sheet
|
|---|
| Cash | 495 | 706 | 636 | 551 | 719 | 30.5% |
| Short Term Debt | 2,194 | 2,790 | 2,600 | 3,644 | 3,603 | -1.1% |
| Long Term Debt | 1,082 | 2,242 | 2,699 | 2,605 | 2,414 | -7.3% |
Cash flow
|
|---|
| Capex | 320 | 204 | 124 | 51 | 58 | 13.7% |
Ratios
|
|---|
| Revenue growth | -16.6% | 19.2% | -16.0% | 5.4% | -4.2% | |
| EBITDA growth | -71.2% | 236.4% | -119.5% | -196.8% | -165.6% | |
| EBITDA Margin | 2.2% | 6.3% | -1.5% | 1.3% | -0.9% | -2.3% |
| Net Income Margin | 0.0% | 1.0% | -8.2% | -2.5% | -5.8% | -3.3% |
| CAPEX, % of revenue | 2.9% | 1.5% | 1.1% | 0.4% | 0.5% | 0.1% |
| ROIC | 3.3% | 11.4% | -4.1% | 0.5% | -3.2% | -3.6% |
| ROE | 0.2% | 8.6% | -77.1% | -43.4% | | 43.4% |
| Net Debt/EBITDA | 11.2x | 5.2x | | 36.0x | | -36.0x |
Revenue and profitability
Trf's Revenue decreased on 4.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 1.3% to -0.92% in FY2015.
Net Income marign decreased on 3.3 pp from -2.5% to -5.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.52% in FY2015. The company showed small CAPEX/Revenue decline of 1.0 pp from 1.5% in FY2012 to 0.52% in FY2015. Average CAPEX/Revenue for the last three years was 0.69%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Net Debt / EBITDA dropped on 36.0x from 36.0x to in FY2015. Debt decreased on 3.7% in FY2015 while cash jumped on 30.5% in FY2015.
Appendix 1: Peers in Commercial Vehicles
Below you can find Trf benchmarking vs. other companies in Commercial Vehicles 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 |
|---|
| Ashok Leyland ($ASHOKLEY) | | 15.5% | -3.3% | -8.0% | 33.6% |
| Tata Motors ($TATAMOTORS) | | 35.7% | 13.5% | 23.3% | 13.4% |
| Hmt ($HMT) | | -1.3% | -15.9% | -23.9% | 2.2% |
| Beml ($BEML) | | 2.7% | 3.2% | 3.7% | -3.5% |
| V.S.T.Tillers Tractors ($VSTTILLERS) | | 24.2% | -9.2% | 29.6% | -11.6% |
| |
|---|
| Median (6 companies) | | 16.8% | -6.3% | -2.2% | -0.7% |
|---|
| Trf ($TRF) | | 19.2% | -16.0% | 5.4% | -4.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| V.S.T.Tillers Tractors ($VSTTILLERS) | 17.0% | 14.0% | 15.1% | 19.2% | 19.1% |
| Tata Motors ($TATAMOTORS) | 12.9% | 12.3% | 12.2% | 13.5% | 14.4% |
| Ashok Leyland ($ASHOKLEY) | 11.0% | 9.7% | 7.0% | 4.1% | 10.7% |
| Brady & Morris Engineering Co ($BRADYM) | | | | | 6.9% |
| Stone India ($STONEIN) | | | | | 4.7% |
| |
|---|
| Median (12 companies) | 11.9% | 11.0% | 9.6% | 8.8% | 3.4% |
|---|
| Trf ($TRF) | 2.2% | 6.3% | -1.5% | 1.3% | -0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Motors ($TATAMOTORS) | 6.8% | 8.5% | 10.2% | 11.8% | 12.4% |
| V.S.T.Tillers Tractors ($VSTTILLERS) | 1.3% | 2.4% | 6.7% | 5.9% | 4.1% |
| Abg Shipyard ($ABGSHIP) | 17.0% | 21.0% | 9.1% | 15.2% | 3.7% |
| Ashok Leyland ($ASHOKLEY) | 3.2% | 5.4% | 5.2% | 3.6% | 1.6% |
| Beml ($BEML) | 6.4% | 4.4% | 4.8% | 1.5% | 1.5% |
| |
|---|
| Median (8 companies) | 4.8% | 4.9% | 6.0% | 4.7% | 1.5% |
|---|
| Trf ($TRF) | 2.9% | 1.5% | 1.1% | 0.4% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| V.S.T.Tillers Tractors ($VSTTILLERS) | 45.9% | 36.4% | 29.3% | 41.0% | 28.0% |
| Tata Motors ($TATAMOTORS) | 19.3% | 20.1% | 16.6% | 17.2% | 17.8% |
| Ashok Leyland ($ASHOKLEY) | 13.6% | 12.2% | 5.8% | -0.5% | 7.6% |
| Cranex ($CRANEX) | | 5.5% | 5.3% | 5.2% | 5.3% |
| Beml ($BEML) | 2.3% | 2.6% | -2.9% | 1.9% | 0.6% |
| |
|---|
| Median (12 companies) | 12.7% | 10.6% | 7.5% | 3.4% | 5.3% |
|---|
| Trf ($TRF) | 3.3% | 11.4% | -4.1% | 0.5% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cranex ($CRANEX) | 6.1x | 10.0x | 9.9x | 9.0x | 10.8x |
| Beml ($BEML) | 6.9x | 5.8x | | 8.0x | 6.9x |
| Ashok Leyland ($ASHOKLEY) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Tata Motors ($TATAMOTORS) | 1.8x | 1.7x | 1.7x | 1.2x | 1.2x |
| Brady & Morris Engineering Co ($BRADYM) | | | 1.5x | | 0.0x |
| |
|---|
| Median (7 companies) | 2.1x | 2.8x | 1.7x | 8.0x | 1.2x |
|---|
