Exide Industries Net Income surged on 16.1% and Revenue decreased slightly on 0.58%
27-04-2016 • About Exide Industries (
$EXIDEIND) • By InTwits
Exide Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Exide Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: ₹4,234m in FY2016, ₹3,315m in FY2015, ₹1,579m in FY2014, ₹1,722m in FY2013, ₹2,105m in FY2012
- The company has highly profitable business model: ROIC is 20.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Exide Industries's Revenue decreased slightly on 0.58%. During FY2012-FY2016 Revenue growth topped in FY2014 at 30.6% and was decelerating since that time. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 12.4% to 11.3% in FY2016. EBITDA Margin followed a declining trend at -0.72 pp per annum in the last 5 years.
Net Income margin increased slightly on 1.1 pp from 6.4% to 7.5% in FY2016.
Investments (CAPEX, working capital and M&A)
Exide Industries's CAPEX/Revenue was 4.5% in FY2016. CAPEX/Revenue increased slightly on 1.8 pp from 2.7% in FY2013 to 4.5% in FY2016. Average CAPEX/Revenue for the last three years was 3.3%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 1.9% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (20.5%) while ROE is a bit lower (17.5%). ROIC decreased on 6.3 pp from 26.9% to 20.5% in FY2016. ROE increased slightly on 0.63 pp from 16.8% to 17.5% in FY2016. During the last 5 years ROIC topped in FY2014 at 29.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.1x. Debt surged on 98.0% while cash jumped on 42.5%.
Exide Industries has no short term refinancing risk: cash is higher than short term debt (255.4%).
Financial and operational results
Exide Industries ($EXIDEIND) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 53,157 | 63,611 | 83,089 | 95,350 | 94,794 | -0.6% |
| SG&A | | | | | 2,400 | |
| EBITDA | 7,623 | 8,583 | 11,495 | 11,832 | 10,675 | -9.8% |
| Net Income | 4,461 | 5,494 | 5,447 | 6,146 | 7,137 | 16.1% |
Balance Sheet
|
|---|
| Cash | 472 | 2,161 | 2,817 | 2,013 | 2,868 | 42.5% |
| Short Term Debt | 296 | 488 | 109 | 550 | 1,123 | 104.0% |
| Long Term Debt | 26 | 24 | 43 | 26 | 19 | -27.5% |
Cash flow
|
|---|
| Capex | 2,105 | 1,722 | 1,579 | 3,315 | 4,234 | 27.7% |
Ratios
|
|---|
| Revenue growth | 11.5% | 19.7% | 30.6% | 14.8% | -0.6% | |
| EBITDA growth | -20.2% | 12.6% | 33.9% | 2.9% | -9.8% | |
|
|---|
| EBITDA Margin | 14.3% | 13.5% | 13.8% | 12.4% | 11.3% | -1.1% |
| SG&A, % of revenue | | | | | 2.5% | |
| Net Income Margin | 8.4% | 8.6% | 6.6% | 6.4% | 7.5% | 1.1% |
| CAPEX, % of revenue | 4.0% | 2.7% | 1.9% | 3.5% | 4.5% | 1.0% |
|
|---|
| ROIC | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% | -6.3% |
| ROE | 17.6% | 19.1% | 16.7% | 16.8% | 17.5% | 0.6% |
| Net Debt/EBITDA | -0.0x | -0.2x | -0.2x | -0.1x | -0.2x | -0.0x |
Peers in Auto Parts & Equipment
Below we provide Exide Industries benchmarking against other companies in Auto Parts & 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 Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spectra Industries ($SPECTRA) | 16.4% | 40.2% | -10.1% | 57.1% | - |
| India Nippon Electricals ($INDNIPPON) | 13.6% | 3.2% | -2.4% | 24.8% | - |
| Amara Raja Batteries ($AMARAJABAT) | 34.3% | 25.1% | 16.1% | 22.6% | - |
| Enkei Wheels (India) ($ENKEIWHEL) | 16.9% | 1.3% | 11.7% | 21.6% | - |
| Ip Rings ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (36 companies) | 17.6% | 2.4% | 4.9% | 8.5% | 6.9% |
|---|
| Exide Industries ($EXIDEIND) | - | 19.7% | 30.6% | 14.8% | -0.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | - |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | - |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | - |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (42 companies) | 10.8% | 9.8% | 10.1% | 10.1% | 19.4% |
|---|
| Exide Industries ($EXIDEIND) | 14.3% | 13.5% | 13.8% | 12.4% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amtek Auto ($AMTEKAUTO) | 18.9% | - | 27.1% | 30.3% | - |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | - |
| Rico Auto Industries ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | - |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | - |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.7% | 5.2% | 4.7% | 6.6% |
|---|
| Exide Industries ($EXIDEIND) | 4.0% | 2.7% | 1.9% | 3.5% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | - |
| Munjal Showa ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | - |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | - |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | - |
| |
|---|
| Median (48 companies) | 15.7% | 11.8% | 12.7% | 14.3% | 5.3% |
|---|
| Exide Industries ($EXIDEIND) | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | - |
| Amtek Auto ($AMTEKAUTO) | 4.8x | - | 5.3x | 5.8x | - |
| Remsons Industries ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | - |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | - |
| Ucal Fuel Systems ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (40 companies) | 1.3x | 2.2x | 0.8x | 0.2x | -1.8x |
|---|
| Exide Industries ($EXIDEIND) | -0.0x | -0.2x | -0.2x | -0.1x | -0.2x |
