Tube Investments Of India reports 145% Net Income growth in 2016 while 8.7 pp EBITDA Margin decline from 30.0% to 21.4%
03-05-2016 • About Tube Investments Of India (
$TUBEINVEST) • By InTwits
Tube Investments Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tube Investments Of India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 5.7%
- CAPEX is quite volatile: ₹3,844m in FY2016, ₹7,159m in FY2015, ₹11,346m in FY2014, ₹29,163m in FY2013, ₹21,889m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tube Investments Of India's Revenue increased on 3.2%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 8.7 pp from 30.0% to 21.4% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2015 at 30.0%.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin surged on 14.4 pp from 10.5% to 24.9% in FY2016. Net Income margin followed a growing trend in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Tube Investments Of India had CAPEX/Revenue of 4.3%. CAPEX/Revenue decreased on 3.7 pp from 8.0% in FY2013 to 4.3% in FY2016. For the last three years the average CAPEX/Revenue was 5.2%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2013 at 8.0% and was declining since that time.
Return on investment
The company operates at good ROE (33.8%) while ROIC is low (4.8%). ROIC showed almost no change in FY2016. ROE surged on 16.0 pp from 17.8% to 33.8% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 4.2% and was growing since that time. During FY2012-FY2016 ROE bottomed in FY2014 at 17.2% and was growing since that time.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 16.2x from 16.4x to 0.1x in FY2016. Debt dropped on 93.1% while cash surged on 24.4%. During the last 5 years Net Debt/EBITDA topped in FY2013 at 17.8x and was declining since that time.
Tube Investments Of India has no short term refinancing risk: cash is higher than short term debt (127.0%).
Financial and operational results
Tube Investments Of India ($TUBEINVEST) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 36,712 | 36,744 | 37,320 | 40,382 | 41,667 | 3.2% |
| SG&A | | | 1,038 | 1,462 | 1,570 | 7.4% |
| EBITDA | 6,760 | 8,968 | 10,556 | 12,128 | 8,907 | -26.6% |
| Net Income | 2,689 | 2,885 | 3,113 | 4,244 | 10,389 | 144.8% |
Balance Sheet
|
|---|
| Cash | 4,125 | 5,958 | 12,270 | 10,576 | 13,155 | 24.4% |
| Short Term Debt | 47,106 | 76,708 | 89,984 | 77,121 | 10,360 | -86.6% |
| Long Term Debt | 75,734 | 89,291 | 104,610 | 132,190 | 4,049 | -96.9% |
Cash flow
|
|---|
| Capex | 2,196 | 2,934 | 2,330 | 2,054 | 1,772 | -13.7% |
Ratios
|
|---|
| Revenue growth | 17.2% | 0.1% | 1.6% | 8.2% | 3.2% | |
| EBITDA growth | -35.9% | 32.7% | 17.7% | 14.9% | -26.6% | |
|
|---|
| EBITDA Margin | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% | -8.7% |
| SG&A, % of revenue | | | 2.8% | 3.6% | 3.8% | 0.1% |
| Net Income Margin | 7.3% | 7.9% | 8.3% | 10.5% | 24.9% | 14.4% |
| CAPEX, % of revenue | 6.0% | 8.0% | 6.2% | 5.1% | 4.3% | -0.8% |
|
|---|
| ROIC | 4.7% | 4.5% | 4.2% | 4.3% | 4.8% | 0.4% |
| ROE | 23.0% | 19.4% | 17.2% | 17.8% | 33.8% | 16.0% |
| Net Debt/EBITDA | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x | -16.2x |
Peers in Auto Parts & Equipment
Below you can find Tube Investments Of India benchmarking vs. other companies in Auto Parts & Equipment 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 | 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (36 companies) | 17.4% | 2.7% | 5.0% | 8.7% | 2.5% |
|---|
| Tube Investments Of India ($TUBEINVEST) | - | 0.1% | 1.6% | 8.2% | 3.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Shivam Autotech ($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% | - |
| Raunaq Automotive Components ($RAUNAQAU) | 10.2% | 10.5% | 12.0% | 15.1% | - |
| |
|---|
| Median (42 companies) | 10.8% | 9.8% | 10.1% | 10.1% | 12.2% |
|---|
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.6% | 4.5% | 4.8% | 4.5% | 6.8% |
|---|
| Tube Investments Of India ($TUBEINVEST) | 6.0% | 8.0% | 6.2% | 5.1% | 4.3% |
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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| |
|---|
| Median (48 companies) | 16.4% | 12.7% | 14.5% | 14.6% | 12.7% |
|---|
| Tube Investments Of India ($TUBEINVEST) | 4.7% | 4.5% | 4.2% | 4.3% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amtek Auto ($AMTEKAUTO) | 4.8x | - | 5.3x | 5.8x | - |
| Remsons Industries ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | - |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Ucal Fuel Systems ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| Subros ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | - |
| |
|---|
| Median (40 companies) | 1.2x | 1.8x | 0.7x | 0.0x | 0.5x |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x |
