Alstom India EBITDA dropped on 202% and Revenue dropped on 19.1%
09-05-2016 • About Alstom India (
$AIL) • By InTwits
Alstom India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: -10.5% in FY2016, 8.3% in FY2015, 6.8% in FY2014, 8.8% in FY2013, 9.5% in FY2012
- The company has unprofitable business model: ROIC is -27.7%
- It operates with high leverage: Net Debt/EBITDA is 4.4x while industry average is 8.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 19.1%. Revenue decline was accelerating on average at -18.0 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 10.2% to 11.1% in FY2016.
Net Income margin dropped on 12.9 pp from 8.3% to -4.6% in FY2016.
Return on investment
The company operates at negative ROIC (-27.7%) and ROE (-8.3%). ROIC dropped on 38.4 pp from 10.7% to -27.7% in FY2016. ROE dropped on 26.8 pp from 18.5% to -8.3% in FY2016. ROIC declined at -12.5 pp per annum in FY2012-FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 28.3%.
Financial and operational results
Alstom India ($AIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24,198 | 27,858 | 26,053 | 21,243 | 17,178 | -19.1% |
| EBITDA | 2,298 | 2,446 | 1,779 | 1,766 | -1,800 | -201.9% |
| Net Income | 1,680 | 1,836 | 2,307 | 1,769 | -790 | -144.7% |
Balance Sheet
|
|---|
| Cash | 2,119 | 1,100 | 2,714 | 7,165 | 5,137 | -28.3% |
| Short Term Debt | 1 | 1 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 955 | 837 | 614 | 526 | | |
Ratios
|
|---|
| Revenue growth | 54.0% | 15.1% | -6.5% | -18.5% | -19.1% | |
| EBITDA growth | -23.4% | 6.4% | -27.3% | -0.7% | -201.9% | |
|
|---|
| EBITDA Margin | 9.5% | 8.8% | 6.8% | 8.3% | -10.5% | -18.8% |
| Net Income Margin | 6.9% | 6.6% | 8.9% | 8.3% | -4.6% | -12.9% |
| CAPEX, % of revenue | 3.9% | 3.0% | 2.4% | 2.5% | | |
|
|---|
| ROIC | 27.2% | 25.6% | 13.2% | 10.7% | -27.7% | -38.4% |
| ROE | 26.2% | 24.5% | 26.6% | 18.5% | -8.3% | -26.8% |
| Net Debt/EBITDA | -0.9x | -0.4x | -1.5x | -4.1x | |
Peers in Heavy Electrical Equipment
Below we provide Alstom India benchmarking against other companies in Heavy Electrical 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 |
|---|
| Swelect Energy Systems ($SWELECTES) | 17.5% | -70.6% | -0.0% | 25.7% | - |
| T D Power Systems ($TDPOWERSYS) | 19.4% | -43.1% | -18.2% | 24.4% | - |
| Sterlite Technologies ($STRTECH) | 15.9% | 17.9% | -17.1% | 20.8% | - |
| Voltamp Transformers ($VOLTAMP) | 4.3% | -7.7% | -13.7% | 16.2% | - |
| Techno Electric And Engineering Co. ($TECHNO) | 13.6% | -15.7% | 1.7% | 12.6% | - |
| |
|---|
| Median (15 companies) | 13.6% | -9.8% | 1.7% | 2.0% | -28.0% |
|---|
| Alstom India ($AIL) | - | 15.1% | -6.5% | -18.5% | -19.1% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Suzlon Energy ($SUZLON) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
| |
|---|
| Median (1 company) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ujaas Energy ($UJAAS) | 1.2% | 18.7% | 17.4% | 38.1% | - |
| Techno Electric And Engineering Co. ($TECHNO) | 27.0% | 34.5% | 28.5% | 26.5% | - |
| Techno Electric & Engineering Company ($TECHELE) | 27.0% | 34.5% | 28.5% | 26.5% | - |
| Sterlite Technologies ($STRTECH) | 7.5% | 7.5% | 10.8% | 15.0% | - |
| Emco ($EMCO) | 7.4% | 9.5% | 11.3% | 9.3% | - |
| |
|---|
| Median (15 companies) | 8.9% | 8.8% | 6.6% | 5.9% | 9.7% |
|---|
| Alstom India ($AIL) | 9.5% | 8.8% | 6.8% | 8.3% | -10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sterlite Technologies ($STRTECH) | 24.9% | 47.2% | 64.9% | 37.4% | - |
| Swelect Energy Systems ($SWELECTES) | 5.1% | 42.5% | 50.8% | 21.8% | - |
| Transformers And Rectifiers (India) ($TRIL) | 5.7% | 8.4% | 2.8% | 5.8% | - |
| T D Power Systems ($TDPOWERSYS) | 3.7% | 14.5% | 15.1% | 3.8% | - |
| Suzlon Energy ($SUZLON) | 4.2% | 3.7% | 3.4% | 3.7% | 4.3% |
| |
|---|
| Median (14 companies) | 5.7% | 3.6% | 2.5% | 2.3% | 3.4% |
|---|
| Alstom India ($AIL) | 3.9% | 3.0% | 2.4% | 2.5% | - |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ujaas Energy ($UJAAS) | 0.0% | 28.5% | 33.7% | 10.2% | - |
| Techno Electric & Engineering Company ($TECHELE) | 15.5% | 12.6% | 9.3% | 10.2% | - |
| Techno Electric And Engineering Co. ($TECHNO) | 15.5% | 12.6% | 9.3% | 10.2% | - |
| Emco ($EMCO) | 4.3% | 6.1% | 7.4% | 6.1% | - |
| Voltamp Transformers ($VOLTAMP) | 8.7% | 6.5% | 1.9% | 5.4% | - |
| |
|---|
| Median (17 companies) | 14.1% | 6.3% | 8.3% | 4.0% | 6.7% |
|---|
| Alstom India ($AIL) | 27.2% | 25.6% | 13.2% | 10.7% | -27.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyoti Structures ($JYOTISTRUC) | 2.4x | 3.6x | 5.7x | 88.2x | - |
| Suzlon Energy ($SUZLON) | 6.1x | - | 87.6x | 19.1x | 9.5x |
| Bgr Energy Systems ($BGRENERGY) | 2.6x | 3.5x | 4.1x | 13.0x | - |
| Sterlite Technologies ($STRTECH) | 4.6x | 10.2x | 15.4x | 11.1x | - |
| Emco ($EMCO) | 8.1x | 7.3x | 5.7x | 7.3x | - |
| |
|---|
| Median (14 companies) | 2.5x | 3.0x | 2.5x | 2.7x | 5.3x |
|---|
| Alstom India ($AIL) | -0.9x | -0.4x | -1.5x | -4.1x | - |
