Nelco EBITDA surged on 45.9% in 2015 and EBITDA Margin increased on 2.5 pp from 5.9% to 8.4%
28-10-2015 • About Nelco (
$NELCO) • By InTwits
Nelco reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nelco doesn't have a profitable business model yet: FY2015 ROIC is -1.2%
- EBITDA Margin is quite volatile: 8.4% in FY2015, 5.9% in FY2014, 1.2% in FY2013, 10.6% in FY2012, -3.8% in FY2011
- The company has unprofitable business model: ROIC is at -1.2%
- It operates with high leverage: Net Debt/EBITDA is 6.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nelco ($NELCO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,317 | 1,607 | 1,347 | 1,343 | 1,368 | 1.8% |
| EBITDA | -50 | 170 | 16 | 79 | 115 | 45.9% |
| Net Income | -155 | 10 | -166 | 19 | -84 | -533.8% |
Balance Sheet
|
|---|
| Cash | 71 | 46 | 37 | 46 | 26 | -44.2% |
| Short Term Debt | | 870 | 776 | 632 | 718 | 13.5% |
| Long Term Debt | 532 | 21 | 33 | 32 | 38 | 18.5% |
Cash flow
|
|---|
| Capex | 113 | 63 | 86 | 77 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -15.5% | 22.0% | -16.2% | -0.3% | 1.8% | |
| EBITDA growth | -32.2% | -439.8% | -90.8% | 406.6% | 45.9% | |
| EBITDA Margin | -3.8% | 10.6% | 1.2% | 5.9% | 8.4% | 2.5% |
| Net Income Margin | -11.8% | 0.6% | -12.3% | 1.4% | -6.1% | -7.6% |
| CAPEX, % of revenue | 8.6% | 3.9% | 6.4% | 5.7% | | -5.7% |
| ROIC | -12.1% | 7.6% | -6.4% | -1.4% | -1.2% | 0.2% |
| ROE | -38.3% | 3.1% | -68.6% | 11.8% | -68.6% | -80.4% |
| Net Debt/EBITDA | | 5.0x | 49.6x | 7.8x | 6.3x | -1.5x |
Revenue and profitability
Nelco's Revenue increased slightly on 1.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.5 pp from 5.9% to 8.4% in FY2015.
Net Income marign decreased on 7.6 pp from 1.4% to -6.1% in FY2015.
Return on investment
The company operates at negative ROIC (-1.19%) and ROE (-68.63%). ROIC showed almost no change in FY2015. ROE dropped on 80.4 pp from 11.8% to -68.6% in FY2015.
Leverage (Debt)
Debt level is 6.3x Net Debt / EBITDA and 6.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 7.8x to 6.3x in FY2015. Debt jumped on 13.8% in FY2015 while cash dropped on 44.2% in FY2015.
Management team
Pradip Jyoti Nath is a Nelco's CEO. Pradip Jyoti Nath has spent 7 years at the company.
Appendix 1: Peers in IT Networking Equipment
Below we provide Nelco benchmarking against other companies in IT Networking 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 EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Smartlink Network Systems ($SMARTLINK) | | | | | -27.1% |
| Gemini Communication ($GEMINI) | | | | | -198.9% |
| |
|---|
| Median (2 companies) | | | | | -113.0% |
|---|
| Nelco ($NELCO) | | 10.6% | 1.2% | 5.9% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Smartlink Network Systems ($SMARTLINK) | | | | | 0.4% |
| |
|---|
| Median (1 company) | | | | | 0.4% |
|---|
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Smartlink Network Systems ($SMARTLINK) | | -11.9% | -9.2% | -7.1% | -6.8% |
| Gemini Communication ($GEMINI) | 21.2% | 12.4% | 7.9% | -12.2% | |
| |
|---|
| Median (2 companies) | 21.2% | 0.2% | -0.6% | -9.7% | -6.8% |
|---|
| Nelco ($NELCO) | | 7.6% | -6.4% | -1.4% | -1.2% |
