Ksb Pumps reports 4.7% EBITDA growth and almost no change in EBITDA Margin of 12.9%
19-02-2016 • About Ksb Pumps (
$KSBPUMPS) • By InTwits
Ksb Pumps reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ksb Pumps has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.3%.
- CAPEX is quite volatile: 947 in FY2015, 763 in FY2014, 477 in FY2013, 418 in FY2012, 488 in FY2011
- The company has highly profitable business model: ROIC is at 13.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ksb Pumps ($KSBPUMPS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,519 | 7,114 | 7,260 | 8,037 | 8,207 | 2.1% |
| EBITDA | 748 | 929 | 1,023 | 1,011 | 1,059 | 4.7% |
| Net Income | 400 | 553 | 668 | 684 | 687 | 0.5% |
Balance Sheet
|
|---|
| Cash | 742 | 1,045 | 1,601 | 1,788 | 2,284 | 27.8% |
| Short Term Debt | 632 | 169 | 32 | 244 | 13 | -94.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 245 | 534 | 256 | 399 | 370 | -7.3% |
Ratios
|
|---|
| Revenue growth | -20.2% | -5.4% | 2.1% | 10.7% | 2.1% | |
| EBITDA growth | -4.7% | 24.2% | 10.2% | -1.2% | 4.7% | |
| EBITDA Margin | 9.9% | 13.1% | 14.1% | 12.6% | 12.9% | 0.3% |
| Net Income Margin | 5.3% | 7.8% | 9.2% | 8.5% | 8.4% | -0.1% |
| CAPEX, % of revenue | 3.3% | 7.5% | 3.5% | 5.0% | 4.5% | -0.5% |
| ROIC | 11.6% | 14.0% | 15.1% | 13.3% | 13.0% | -0.3% |
| ROE | 9.8% | 12.4% | 13.6% | 12.8% | 11.8% | -1.0% |
| Net Debt/EBITDA | -0.1x | -0.9x | -1.5x | -1.5x | -2.1x | -0.6x |
Revenue and profitability
The company's Revenue increased on 2.1% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Ksb Pumps had CAPEX/Revenue of 4.5%. The company showed decline in CAPEX/Revenue of 3.0 pp from 7.5% in FY2012 to 4.5% in FY2015. Average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at good ROIC (12.99%) while ROE is low (11.85%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.95 pp from 12.8% to 11.8% in FY2015.
Leverage (Debt)
Debt level is -2.1x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -1.5x to -2.1x in FY2015. Debt dropped on 94.7% in FY2015 while cash jumped on 27.8% in FY2015.
Valuation
Ksb Pumps's trades at EV/EBITDA 15.9x and P/E 27.8x while industy averages are 10.5x and 26.1x. Ksb Pumps's EV/(EBITDA-CAPEX) is 24.4x with the industry average at 4.7x.
Appendix 1: Peers in Industrial Machinery
Below we provide Ksb Pumps benchmarking against other companies in Industrial Machinery 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 |
|---|
| 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 ($MAZDALTD) | | 22.1% | 14.7% | -15.6% | 16.2% |
| |
|---|
| Median (27 companies) | | 20.1% | 2.3% | 0.9% | 3.7% |
|---|
| Ksb Pumps ($KSBPUMPS) | | -5.4% | 2.1% | 10.7% | 2.1% |
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 (42 companies) | 14.0% | 10.7% | 9.4% | 10.0% | 9.7% |
|---|
| Ksb Pumps ($KSBPUMPS) | 9.9% | 13.1% | 14.1% | 12.6% | 12.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Texmaco Infrastructure & Holdings ($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% | 5.5% | 4.1% | 2.7% | 3.1% |
|---|
| Ksb Pumps ($KSBPUMPS) | 3.3% | 7.5% | 3.5% | 5.0% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Greaves Cotton ($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 (51 companies) | 15.2% | 12.6% | 10.2% | 9.2% | 12.1% |
|---|
| Ksb Pumps ($KSBPUMPS) | 11.6% | 14.0% | 15.1% | 13.3% | 13.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forbes & Company ($FORBESCO) | 3.5x | 2.2x | 3.3x | 4.7x | 6.3x |
| Nitin Fire Protection Industries ($NITINFIRE) | 2.0x | 3.6x | 3.5x | 3.0x | 3.7x |
| Elgi Equipments ($ELGIEQUIP) | -0.7x | -1.2x | 2.3x | 2.7x | 3.3x |
| Lloyd Electric & Engineering ($LLOYDELENG) | 4.0x | 3.2x | 3.0x | 3.7x | 3.2x |
| Elecon Engineering Co ($ELECON) | 3.1x | 3.0x | 3.2x | 4.0x | 3.1x |
| |
|---|
| Median (33 companies) | 1.3x | 1.1x | 1.7x | 0.0x | 0.0x |
|---|
| Ksb Pumps ($KSBPUMPS) | -0.1x | -0.9x | -1.5x | -1.5x | -2.1x |
