Goodyear India EBITDA increased on 9.2% in 2015 and EBITDA Margin increased slightly on 1.8 pp from 9.8% to 11.7%

05-02-2016 • About Goodyear India ($GOODYEAR) • By InTwits

Goodyear India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

• Goodyear India is a company in decline: FY2015 revenue growth was -8.0%, 5 years revenue CAGR was -3.5%
• EBITDA Margin is expanding: 11.7% in FY2015 vs. 9.8% in FY2014 vs. in FY2011

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Goodyear India ($GOODYEAR) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	15,134	14,813	15,687	15,792	14,524	-8.0%
EBITDA			1,469	1,553	1,697	9.2%
Net Income	646	563	941	1,012	1,071	5.7%
Balance Sheet
Cash	762	185	421	2,307		-100.0%
Short Term Debt	0	0	0	0
Long Term Debt	0	0	0	0
Cash flow
Capex	0	0	501	494		-100.0%
Ratios
Revenue growth	-12.8%	-2.1%	5.9%	0.7%	-8.0%
EBITDA growth				5.8%	9.2%
EBITDA Margin	0.0%	0.0%	9.4%	9.8%	11.7%	1.8%
Net Income Margin	4.3%	3.8%	6.0%	6.4%	7.4%	1.0%
CAPEX, % of revenue	0.0%	0.0%	3.2%	3.1%		-3.1%
ROIC	33.1%	25.5%	30.3%	26.7%		-26.7%
ROE	22.0%	16.8%	24.2%	22.0%		-22.0%
Net Debt/EBITDA			-0.3x	-1.5x	0.0x	1.5x

Revenue and profitability

Goodyear India's Revenue decreased on 8.0% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 9.8% to 11.7% in FY2015.

Net Income marign increased slightly on 0.96 pp from 6.4% to 7.4% in FY2015.

Appendix 1: Peers in Auto Tyres & Rubber Products

Below we provide Goodyear India benchmarking against other companies in Auto Tyres & Rubber Products 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
Rubfila International ($RUBFILA)		20.9%	4.7%	25.1%	28.7%
Ceat ($CEATLTD)		28.0%	8.7%	9.9%	3.6%
Balkrishna Industries ($BALKRISIND)		41.5%	12.5%	11.1%	1.2%
Pix Transmissions ($PIXTRANS)		-5.8%	12.3%	-14.1%	-3.6%
Apollo Tyres ($APOLLOTYRE)		37.1%	5.3%	4.0%	-4.4%
Median (5 companies)		28.0%	8.7%	9.9%	1.2%
Goodyear India ($GOODYEAR)		-2.1%	5.9%	0.7%	-8.0%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Balkrishna Industries ($BALKRISIND)	17.6%	17.0%	20.1%	26.0%	19.1%
Pix Transmissions ($PIXTRANS)	19.0%	20.4%	21.7%	16.9%	18.1%
Multibase India ($MULTIBASE)					17.0%
Apollo Tyres ($APOLLOTYRE)	11.0%	9.7%	11.4%	14.2%	15.2%
Ceat ($CEATLTD)	4.6%	6.1%	9.0%	11.9%	13.7%
Median (7 companies)	11.0%	12.3%	14.9%	14.2%	15.2%
Goodyear India ($GOODYEAR)			9.4%	9.8%	11.7%

Top companies by CAPEX/Revenue, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Balkrishna Industries ($BALKRISIND)	10.8%	23.4%	29.9%	23.5%	9.7%
Ceat ($CEATLTD)	16.7%	3.1%	1.7%	2.7%	5.3%
Apollo Tyres ($APOLLOTYRE)	12.6%	6.5%	4.9%	3.7%	5.0%
Rubfila International ($RUBFILA)	2.2%	0.3%	9.1%	5.0%	2.2%
Multibase India ($MULTIBASE)					1.8%
Median (5 companies)	10.8%	4.8%	7.0%	4.4%	5.0%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Rubfila International ($RUBFILA)	12.5%	35.1%	26.2%	22.7%	29.4%
Ceat ($CEATLTD)	8.5%	11.4%	19.1%	27.6%	28.8%
Multibase India ($MULTIBASE)	17.6%	12.3%	22.8%	22.0%	25.8%
Apollo Tyres ($APOLLOTYRE)	15.0%	14.7%	16.8%	23.6%	23.9%
Balkrishna Industries ($BALKRISIND)	17.4%	17.7%	17.3%	19.7%	10.4%
Median (8 companies)	13.8%	11.8%	17.7%	22.7%	25.8%
Goodyear India ($GOODYEAR)	33.1%	25.5%	30.3%	26.7%

Top companies by Net Debt / EBITDA

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Balkrishna Industries ($BALKRISIND)	1.7x	3.2x	3.2x	2.5x	2.6x
Ceat ($CEATLTD)	5.8x	4.5x	2.1x	1.3x	0.8x
Apollo Tyres ($APOLLOTYRE)	2.3x	2.4x	1.3x	0.3x	0.3x
Tirupati Foam ($TIRFOAM)	3.8x	6.4x	5.4x	0.0x	0.0x
Pix Transmissions ($PIXTRANS)	4.6x	4.8x	-0.6x	0.0x	0.0x
Median (7 companies)	4.2x	3.8x	1.3x	0.0x	0.0x
Goodyear India ($GOODYEAR)			-0.3x	-1.5x	0.0x

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