Dcm Shriram CAPEX surged on 347% and Revenue increased on 3.4%
10-05-2016 • About Dcm Shriram (
$DCMSHRIRAM) • By InTwits
Dcm Shriram reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Dcm Shriram has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: ₹4,662m in FY2016, ₹1,044m in FY2015, ₹951m in FY2014, ₹775m in FY2013, ₹669m in FY2012
- The company has highly profitable business model: ROIC is 12.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dcm Shriram's Revenue increased on 3.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.3 pp from 13.7% to 16.0% in FY2016.
Net Income margin increased slightly on 1.4 pp from 3.8% to 5.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Dcm Shriram had CAPEX/Revenue of 8.0%. Dcm Shriram's CAPEX/Revenue increased on 6.6 pp from 1.4% in FY2013 to 8.0% in FY2016. Average CAPEX/Revenue for the last three years was 3.8%. The company invested a large share of EBITDA (94.8%) to CAPEX. CAPEX as a % of Revenue pursued a growing trend in the last 5 years.
Return on investment
The company operates at good ROIC (12.9%) and ROE (15.0%). ROIC increased on 2.6 pp from 10.3% to 12.9% in FY2016. ROE increased on 3.1 pp from 11.9% to 15.0% in FY2016.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.6x to 2.1x in FY2016. Debt jumped on 40.6% while cash dropped on 57.0%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2015 at 1.6x.
Dcm Shriram has short term refinancing risk: cash is only 5.1% of short term debt.
Management team
Dcm Shriram's CEO is Ajay S Shriram. Ajay S Shriram has 6 years tenure with the company.
Financial and operational results
Dcm Shriram ($DCMSHRIRAM) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 50,062 | 55,169 | 61,590 | 56,063 | 57,948 | 3.4% |
| SG&A | | | | | 949 | |
| EBITDA | 3,464 | 5,490 | 5,171 | 4,095 | 4,916 | 20.1% |
| Net Income | 119 | 2,029 | 2,424 | 2,108 | 2,972 | 41.0% |
Balance Sheet
|
|---|
| Cash | 1,862 | 1,356 | 2,959 | 954 | 410 | -57.0% |
| Short Term Debt | 10,268 | 8,933 | 5,888 | 4,584 | 8,089 | 76.5% |
| Long Term Debt | 7,913 | 6,635 | 5,883 | 3,012 | 2,594 | -13.9% |
Cash flow
|
|---|
| Capex | 669 | 775 | 951 | 1,044 | 4,662 | 346.6% |
Ratios
|
|---|
| Revenue growth | 21.2% | 10.2% | 11.6% | -9.0% | 3.4% | |
| EBITDA growth | 60.5% | 58.5% | -5.8% | -20.8% | 20.1% | |
|
|---|
| EBITDA Margin | 6.9% | 10.0% | 8.4% | 7.3% | 8.5% | 1.2% |
| SG&A, % of revenue | | | | | 1.6% | |
| Net Income Margin | 0.2% | 3.7% | 3.9% | 3.8% | 5.1% | 1.4% |
| CAPEX, % of revenue | 1.3% | 1.4% | 1.5% | 1.9% | 8.0% | 6.2% |
|
|---|
| ROIC | 5.9% | 12.3% | 12.1% | 10.3% | 12.9% | 2.6% |
| ROE | 0.9% | 14.4% | 15.2% | 11.9% | 15.0% | 3.1% |
| Net Debt/EBITDA | 4.7x | 2.6x | 1.7x | 1.6x | 2.1x | 0.5x |
Peers in Diversified
Below you can find Dcm Shriram benchmarking vs. other companies in Diversified 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 3M India ($3MINDIA) | 17.9% | 12.0% | 8.5% | 7.7% | - |
| Aditya Birla Nuvo ($ABIRLANUVO) | 21.3% | 16.7% | 1.6% | 2.4% | - |
| Mercator ($MERCATOR) | 30.8% | 0.9% | -7.4% | -10.6% | - |
| |
|---|
| Median (3 companies) | 21.3% | 12.0% | 1.6% | 2.4% | - |
|---|
| Dcm Shriram ($DCMSHRIRAM) | - | 10.2% | 11.6% | -9.0% | 3.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Swasti Vinayaka Art And Heritage Corporation ($SVARTCORP) | - | - | - | 38.3% | - |
| Aditya Birla Nuvo ($ABIRLANUVO) | 13.5% | 14.9% | 17.7% | 20.4% | - |
| Mercator ($MERCATOR) | 15.8% | 13.6% | 18.6% | 17.1% | - |
| 3M India ($3MINDIA) | 8.7% | 7.3% | 7.2% | 11.1% | - |
| Raja Bahadur International ($RAJABAH) | - | - | - | 9.0% | - |
| |
|---|
| Median (5 companies) | 13.5% | 13.6% | 17.7% | 17.1% | - |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 6.9% | 10.0% | 8.4% | 7.3% | 8.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mercator ($MERCATOR) | 7.4% | 2.0% | 11.4% | 26.4% | - |
| Aditya Birla Nuvo ($ABIRLANUVO) | 7.6% | 6.5% | 17.1% | 7.2% | - |
| 3M India ($3MINDIA) | 0.0% | 0.0% | 0.0% | 0.0% | - |
| |
|---|
| Median (3 companies) | 7.4% | 2.0% | 11.4% | 7.2% | - |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 1.3% | 1.4% | 1.5% | 1.9% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 3M India ($3MINDIA) | 15.5% | 10.4% | 8.9% | 18.1% | - |
| Aditya Birla Nuvo ($ABIRLANUVO) | 10.3% | 10.8% | 10.3% | 10.3% | - |
| Mercator ($MERCATOR) | 3.4% | 1.0% | 3.5% | 0.9% | - |
| Advanced Micronic Devices ($ADVNCMIC) | 9.1% | -2.8% | - | - | - |
| Raja Bahadur International ($RAJABAH) | - | - | - | - | - |
| |
|---|
| Median (6 companies) | 10.3% | 5.7% | 8.9% | 10.3% | - |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 5.9% | 12.3% | 12.1% | 10.3% | 12.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mercator ($MERCATOR) | 4.9x | 5.4x | 4.7x | 6.9x | - |
| Aditya Birla Nuvo ($ABIRLANUVO) | 3.3x | 4.0x | 3.9x | 4.6x | - |
| Raja Bahadur International ($RAJABAH) | - | - | - | 0.0x | - |
| Swasti Vinayaka Art And Heritage Corporation ($SVARTCORP) | 2.8x | 0.0x | 0.0x | 0.0x | - |
| 3M India ($3MINDIA) | 0.2x | 1.0x | 0.5x | -0.5x | - |
| |
|---|
| Median (5 companies) | 3.3x | 4.0x | 2.2x | 0.0x | - |
|---|
| Dcm Shriram ($DCMSHRIRAM) | 4.7x | 2.6x | 1.7x | 1.6x | 2.1x |
