Shanthi Gears CAPEX jumped on 195% and Revenue increased on 6.9%
27-04-2016 • About Shanthi Gears (
$SHANTIGEAR) • By InTwits
Shanthi Gears reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 19.4% in FY2016, 12.0% in FY2015, 27.8% in FY2014, 30.2% in FY2013, 37.9% in FY2012
- Shanthi Gears has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 5.6%
- CAPEX is quite volatile: ₹107m in FY2016, ₹36m in FY2015, ₹48m in FY2014, ₹68m in FY2013, ₹81m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Shanthi Gears's Revenue increased on 6.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.9 pp from 1.2% to -5.7% in FY2016. EBITDA Margin followed a declining trend at -5.5 pp per annum in the last 5 years.
Net Income margin increased on 5.1 pp from 6.1% to 11.2% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 6.6%. Shanthi Gears showed small growth in CAPEX/Revenue of 1.9 pp from 4.7% in FY2013 to 6.6% in FY2016. It's average CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at low ROIC (5.3%) and ROE (6.6%). ROIC increased on 4.8 pp from 0.55% to 5.3% in FY2016. ROE increased on 3.1 pp from 3.5% to 6.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 143,650%.
Financial and operational results
Shanthi Gears ($SHANTIGEAR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,723 | 1,437 | 1,508 | 1,520 | 1,624 | 6.9% |
| EBITDA | 654 | 434 | 418 | 183 | 316 | 73.0% |
| Net Income | 281 | 155 | 184 | 93 | 182 | 95.7% |
Balance Sheet
|
|---|
| Cash | 1 | 16 | 26 | 0 | 575 | 143,650.0% |
| Short Term Debt | 40 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 81 | 68 | 48 | 36 | 107 | 195.3% |
Ratios
|
|---|
| Revenue growth | 6.1% | -16.6% | 4.9% | 0.8% | 6.9% | |
| EBITDA growth | -9.6% | -33.6% | -3.7% | -56.4% | 73.0% | |
|
|---|
| EBITDA Margin | 37.9% | 30.2% | 27.8% | 12.0% | 19.4% | 7.4% |
| Net Income Margin | 16.3% | 10.8% | 12.2% | 6.1% | 11.2% | 5.1% |
| CAPEX, % of revenue | 4.7% | 4.7% | 3.2% | 2.4% | 6.6% | 4.2% |
|
|---|
| ROIC | 14.8% | 5.6% | 6.1% | 0.6% | 5.3% | 4.8% |
| ROE | 11.8% | 6.1% | 7.0% | 3.5% | 6.6% | 3.1% |
| Net Debt/EBITDA | 0.1x | -0.0x | -0.1x | -0.0x | -1.8x | -1.8x |
Peers in Auto Parts & Equipment
Below we provide Shanthi Gears 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (36 companies) | 17.6% | 2.7% | 5.0% | 8.7% | -0.6% |
|---|
| Shanthi Gears ($SHANTIGEAR) | - | -16.6% | 4.9% | 0.8% | 6.9% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (42 companies) | 10.8% | 9.8% | 10.1% | 10.1% | 11.3% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 37.9% | 30.2% | 27.8% | 12.0% | 19.4% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.5% | 5.2% | 4.7% | 4.5% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 4.7% | 4.7% | 3.2% | 2.4% | 6.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | - |
| Exide Industries ($EXIDEIND) | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% |
| 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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| |
|---|
| Median (48 companies) | 16.4% | 12.7% | 14.5% | 14.6% | 20.5% |
|---|
| Shanthi Gears ($SHANTIGEAR) | 14.8% | 5.6% | 6.1% | 0.6% | 5.3% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (40 companies) | 1.3x | 2.2x | 0.8x | 0.2x | -0.2x |
|---|
| Shanthi Gears ($SHANTIGEAR) | 0.1x | -0.0x | -0.1x | -0.0x | -1.8x |
