T D Power Systems reports 64.9% EBITDA decline in 2016 and 1.9 pp EBITDA Margin decline from 3.3% to 1.4%
11-05-2016 • About T D Power Systems (
$TDPOWERSYS) • By InTwits
T D Power Systems reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- T D Power Systems is a company in decline: FY2016 revenue growth was -15.9%, 5 years revenue CAGR was -10.3%
- EBITDA Margin is declining: 1.4% in FY2016 vs. 3.3% in FY2015 vs. 8.9% in FY2012
- EBITDA Margin is quite volatile: 1.4% in FY2016, 3.3% in FY2015, 4.2% in FY2014, 8.8% in FY2013, 8.9% in FY2012
- T D Power Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.1%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: ₹171m in FY2016, ₹226m in FY2015, ₹727m in FY2014, ₹849m in FY2013, ₹384m in FY2012
- The company has unprofitable business model: ROIC is -3.9%
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 15.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 3.5% to 7.1% in FY2016. EBITDA Margin stuck to a declining trend at -2.1 pp per annum in the last 5 years.
Net Income margin decreased slightly on 1.7 pp from -0.14% to -1.8% in FY2016. Net Income margin followed a declining trend at -2.4 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
T D Power Systems's CAPEX/Revenue was 3.4% in FY2016. CAPEX/Revenue dropped on 11.0 pp from 14.5% in FY2013 to 3.4% in FY2016. Average CAPEX/Revenue for the last three years was 7.4%. T D Power Systems has spent a lot to CAPEX (245% of EBITDA) which didn't stop revenue from falling. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 15.1% and was declining since that time.
Return on investment
The company operates at negative ROIC (-3.9%) and ROE (-1.9%). ROIC decreased on 2.4 pp from -1.5% to -3.9% in FY2016. ROE decreased slightly on 1.7 pp from -0.17% to -1.9% in FY2016. ROIC stuck to a declining trend at -5.9 pp per annum in FY2012-FY2016. ROE declined at -5.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is -28.3x Net Debt / EBITDA and 4.0x Debt / EBITDA. Debt dropped on 51.8% while cash dropped on 17.0%.
T D Power Systems has no short term refinancing risk: cash is higher than short term debt (816.9%).
Financial and operational results
T D Power Systems ($TDPOWERSYS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,316 | 5,871 | 4,802 | 5,974 | 5,024 | -15.9% |
| EBITDA | 920 | 519 | 203 | 199 | 70 | -64.9% |
| Net Income | 671 | 417 | 224 | -8 | -92 | |
Balance Sheet
|
|---|
| Cash | 430 | 222 | 484 | 2,721 | 2,258 | -17.0% |
| Short Term Debt | 346 | 270 | 630 | 574 | 276 | -51.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 384 | 849 | 727 | 226 | 171 | -24.4% |
Ratios
|
|---|
| Revenue growth | 19.4% | -43.1% | -18.2% | 24.4% | -15.9% | |
| EBITDA growth | 2.9% | -43.6% | -61.0% | -1.8% | -64.9% | |
|
|---|
| EBITDA Margin | 8.9% | 8.8% | 4.2% | 3.3% | 1.4% | -1.9% |
| Net Income Margin | 6.5% | 7.1% | 4.7% | -0.1% | -1.8% | -1.7% |
| CAPEX, % of revenue | 3.7% | 14.5% | 15.1% | 3.8% | 3.4% | -0.4% |
|
|---|
| ROIC | 21.2% | 7.6% | 0.9% | -1.5% | -3.9% | -2.4% |
| ROE | 20.8% | 8.8% | 4.5% | -0.2% | -1.9% | -1.7% |
| Net Debt/EBITDA | -0.1x | 0.1x | 0.7x | -10.8x | -28.3x | -17.5x |
Peers in Heavy Electrical Equipment
Below you can find T D Power Systems benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| Swelect Energy Systems ($SWELECTES) | 17.5% | -70.6% | -0.0% | 25.7% | - |
| Sterlite Technologies ($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% | - |
| Techno Electric & Engineering Company ($TECHELE) | 13.6% | -15.7% | 1.7% | 12.6% | - |
| |
|---|
| Median (15 companies) | 13.6% | -7.7% | 1.7% | 0.3% | -19.1% |
|---|
| T D Power Systems ($TDPOWERSYS) | - | -43.1% | -18.2% | 24.4% | -15.9% |
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) | 9.4% | 8.8% | 6.8% | 8.3% | 7.7% |
|---|
| T D Power Systems ($TDPOWERSYS) | 8.9% | 8.8% | 4.2% | 3.3% | 1.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sterlite Technologies ($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% | - |
| Suzlon Energy ($SUZLON) | 4.2% | 3.7% | 3.4% | 3.7% | 4.3% |
| Crompton Greaves ($CROMPGREAV) | 3.3% | 1.8% | 2.2% | 3.6% | 2.6% |
| |
|---|
| Median (14 companies) | 5.7% | 3.0% | 2.3% | 1.8% | 3.4% |
|---|
| T D Power Systems ($TDPOWERSYS) | 3.7% | 14.5% | 15.1% | 3.8% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Alstom India ($AIL) | 27.2% | 25.6% | 13.2% | 10.7% | -27.7% |
| 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% | - |
| |
|---|
| Median (17 companies) | 14.1% | 6.3% | 9.3% | 4.3% | 3.9% |
|---|
| T D Power Systems ($TDPOWERSYS) | 21.2% | 7.6% | 0.9% | -1.5% | -3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyoti Structures ($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 |
|---|
| T D Power Systems ($TDPOWERSYS) | -0.1x | 0.1x | 0.7x | -10.8x | -28.3x |
