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Tecpro Systems reports 69.9% revenue decline in FY2015 and 120 pp EBITDA Margin decline from -4.4% to -124%

28-10-2015 • About Tecpro Systems ($TECPRO) • By InTwits

Tecpro Systems reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Tecpro Systems is a company in decline: FY2015 revenue growth was -69.9%, 5 years revenue CAGR was -3.5%
  • The company operates at negative EBITDA Margin: -124.5%
  • It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Tecpro Systems ($TECPRO) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue19,70025,36826,0899,0012,708-69.9%
EBITDA3,2743,9333,545-400-3,371
Net Income1,3251,231269-5,688-10,815
Balance Sheet
Cash1,6501,44626968-100.0%
Short Term Debt6,67312,03420,61235,063-100.0%
Long Term Debt4239968571,180-100.0%
Cash flow
Capex6791,168246-100.0%
Ratios
Revenue growth507.3%28.8%2.8%-65.5%-69.9%
EBITDA growth32.9%20.1%-9.9%-111.3%742.2%
EBITDA Margin16.6%15.5%13.6%-4.4%-124.5%-120.0%
Net Income Margin6.7%4.9%1.0%-63.2%-399.3%-336.1%
CAPEX, % of revenue3.4%4.6%2.7%-2.7%
ROIC28.1%21.4%13.2%-1.8%1.8%
ROE26.3%17.1%3.4%-110.1%110.1%
Net Debt/EBITDA1.7x2.9x6.0x0.0x

Revenue and profitability


The company's Revenue dropped on 69.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 120 pp from -4.4% to -124% in FY2015.

Net Income marign dropped on 336 pp from -63.2% to -399% in FY2015.


Appendix 1: Peers in Industrial Machinery


Below you can find Tecpro Systems benchmarking vs. other companies in Industrial Machinery 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
Lloyd Electric & Engineering ($LLOYDELENG)32.2%9.9%20.5%22.3%
Kabra Extrusiontechnik ($KABRAEXTRU)-13.3%-8.7%28.4%21.6%
Akar Tools ($AKARTOOL)21.1%2.1%-2.3%16.7%
Honda Siel Power Products ($HONDAPOWER)28.1%2.4%5.0%16.5%
Mazda ($MAZDALTD)22.1%14.7%-15.6%16.2%
 
Median (26 companies)-20.2%14.1%2.1%4.0%4.1%
Tecpro Systems ($TECPRO)28.8%2.8%-65.5%-69.9%


Top companies by Gross margin, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Bell Agromachina ($BELAGRO)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
Texmaco Infrastructure & Holdings ($TEXINFRA)40.5%
Dhp India ($DHPIND)26.3%
Solitaire Machine Tools ($SOLIMAC)19.4%
Wendt (India) ($WENDT)30.8%28.3%21.6%18.6%19.0%
Goldstone Infratech ($GOLDINFRA)18.1%
 
Median (41 companies)13.5%10.7%9.4%10.5%10.2%
Tecpro Systems ($TECPRO)16.6%15.5%13.6%-4.4%-124.5%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Texmaco Infrastructure & Holdings ($TEXINFRA)14.0%
Wendt (India) ($WENDT)7.2%13.5%9.0%8.8%9.4%
Ingersoll-Rand (India) ($INGERRAND)1.3%4.3%10.9%3.6%9.2%
Kabra Extrusiontechnik ($KABRAEXTRU)5.4%6.5%1.8%0.5%8.8%
Forbes & Company ($FORBESCO)2.8%1.8%2.6%3.0%5.1%
 
Median (21 companies)3.9%5.8%3.8%3.0%3.1%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Greaves Cotton ($GREAVESCOT)24.8%16.3%26.7%
Gmm Pfaudler ($GMM)14.2%-76.2%6.8%17.4%18.2%
Lakshmi Machine Works ($LAXMIMACH)16.8%18.0%11.7%16.2%17.6%
Honda Siel Power Products ($HONDAPOWER)17.3%16.9%8.8%11.5%15.3%
Wendt (India) ($WENDT)38.2%20.2%16.2%15.1%
 
Median (50 companies)14.6%12.6%10.2%9.7%12.1%
Tecpro Systems ($TECPRO)28.1%21.4%13.2%-1.8%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Forbes & Company ($FORBESCO)3.5x2.2x3.3x4.7x6.3x
Nitin Fire Protection Industries ($NITINFIRE)2.0x3.6x3.5x3.0x3.7x
Elgi Equipments ($ELGIEQUIP)-0.7x-1.2x2.3x2.7x3.3x
Lloyd Electric & Engineering ($LLOYDELENG)4.0x3.2x3.0x3.7x3.2x
Elecon Engineering Co ($ELECON)3.1x3.0x3.2x4.0x3.1x
 
Median (33 companies)1.1x0.6x1.5x0.0x0.0x