Lumax Auto Technologies Net Income dropped on 29.4% while Revenue increased on 8.1%
12-05-2016 • About Lumax Auto Technologies (
$LUMAXTECH) • By InTwits
Lumax Auto Technologies reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 8.0% in FY2016 vs. 8.0% in FY2015 vs. 8.6% in FY2012
- Lumax Auto Technologies has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's in pair with industry average of 5.7%
- CAPEX is quite volatile: ₹225m in FY2016, ₹978m in FY2015, ₹1,614m in FY2014, ₹633m in FY2013, ₹149m in FY2012
- The company has highly profitable business model: ROIC is 15.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Lumax Auto Technologies's Revenue increased on 8.1%. EBITDA Margin showed almost no change in FY2016.
Net Income margin decreased slightly on 1.9 pp from 5.4% to 3.5% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.5% in FY2016. CAPEX/Revenue decreased on 3.7 pp from 7.3% in FY2013 to 3.5% in FY2016. For the last three years the average CAPEX/Revenue was 5.0%. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 7.8% and was declining since that time.
Return on investment
The company operates at good ROIC (15.6%) while ROE is low (11.7%). ROIC showed almost no change in FY2016. ROE decreased on 6.8 pp from 18.5% to 11.7% in FY2016. ROIC declined at -4.5 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA decreased on 0.033x from 0.4x to 0.3x in FY2016. Debt decreased on 7.4% while cash dropped on 18.9%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 0.7x and was declining since that time.
Lumax Auto Technologies has short term refinancing risk: cash is only 54.3% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 6.7x and P/E 14.5x while industy averages are 17.8x and 21.9x. Lumax Auto Technologies's EV/(EBITDA-CAPEX) is 12.0x with the industry average at 22.8x.
Financial and operational results
Lumax Auto Technologies ($LUMAXTECH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,515 | 7,663 | 7,628 | 8,372 | 9,051 | 8.1% |
| EBITDA | 645 | 671 | 600 | 667 | 727 | 9.1% |
| Net Income | 507 | 411 | 302 | 450 | 318 | -29.4% |
Balance Sheet
|
|---|
| Cash | 89 | 97 | 120 | 154 | 124 | -18.9% |
| Short Term Debt | 0 | 16 | 133 | 136 | 229 | 68.2% |
| Long Term Debt | 14 | 258 | 385 | 271 | 148 | -45.4% |
Cash flow
|
|---|
| Capex | 384 | 557 | 593 | 318 | 320 | 0.7% |
Ratios
|
|---|
| Revenue growth | 19.9% | 2.0% | -0.5% | 9.8% | 8.1% | |
| EBITDA growth | 9.5% | 4.0% | -10.6% | 11.1% | 9.1% | |
|
|---|
| EBITDA Margin | 8.6% | 8.8% | 7.9% | 8.0% | 8.0% | 0.1% |
| Net Income Margin | 6.8% | 5.4% | 4.0% | 5.4% | 3.5% | -1.9% |
| CAPEX, % of revenue | 5.1% | 7.3% | 7.8% | 3.8% | 3.5% | -0.3% |
|
|---|
| ROIC | 33.0% | 25.5% | 15.6% | 15.4% | 15.6% | 0.2% |
| ROE | 31.3% | 20.8% | 13.8% | 18.5% | 11.7% | -6.8% |
| Net Debt/EBITDA | -0.1x | 0.3x | 0.7x | 0.4x | 0.3x | -0.0x |
Peers in Auto Parts & Equipment
Below you can find Lumax Auto Technologies 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.9% | 2.6% | 5.0% | 8.6% | 2.5% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | - | 2.0% | -0.5% | 9.8% | 8.1% |
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% | 21.4% |
| 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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 11.1% | 9.8% | 10.2% | 10.3% | 12.2% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 8.6% | 8.8% | 7.9% | 8.0% | 8.0% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.5% | 4.8% | 4.7% | 6.6% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 5.1% | 7.3% | 7.8% | 3.8% | 3.5% |
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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| |
|---|
| Median (49 companies) | 15.7% | 11.9% | 12.7% | 14.3% | 10.0% |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | 33.0% | 25.5% | 15.6% | 15.4% | 15.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x |
| Amtek Auto ($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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.1x |
|---|
| Lumax Auto Technologies ($LUMAXTECH) | -0.1x | 0.3x | 0.7x | 0.4x | 0.3x |
