Sona Koyo Steering Systems EBITDA dropped on 10.2% and EBITDA Margin decreased slightly on 1.1 pp from 13.9% to 12.8%
13-05-2016 • About Sona Koyo Steering Systems (
$SONASTEER) • By InTwits
Sona Koyo Steering Systems reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sona Koyo Steering Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: ₹93m in FY2016, ₹143m in FY2015, ₹142m in FY2014, ₹376m in FY2013, ₹581m in FY2012
- The company has highly profitable business model: ROIC is 12.3%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 2.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 2.1% to 5.3% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Sona Koyo Steering Systems had CAPEX/Revenue of 5.9%. The company showed small CAPEX/Revenue decline of 0.66 pp from 6.6% in FY2013 to 5.9% in FY2016. It's average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at good ROIC (12.3%) while ROE is low (11.0%). ROIC decreased on 2.4 pp from 14.6% to 12.3% in FY2016. ROE decreased slightly on 0.94 pp from 12.0% to 11.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.6x. Net Debt / EBITDA increased on 0.1x from 1.3x to 1.4x in FY2016. Debt increased on 5.2% while cash jumped on 364%.
Sona Koyo Steering Systems has short term refinancing risk: cash is only 22.8% of short term debt.
Financial and operational results
Sona Koyo Steering Systems ($SONASTEER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14,213 | 14,600 | 14,923 | 15,530 | 15,183 | -2.2% |
| EBITDA | 1,877 | 1,655 | 1,818 | 2,162 | 1,942 | -10.2% |
| Net Income | 487 | 381 | 678 | 379 | 370 | -2.2% |
Balance Sheet
|
|---|
| Cash | 112 | 17 | 16 | 74 | 345 | 364.4% |
| Short Term Debt | 951 | 1,696 | 1,719 | 1,246 | 1,515 | 21.6% |
| Long Term Debt | 2,624 | 2,403 | 1,696 | 1,675 | 1,559 | -6.9% |
Cash flow
|
|---|
| Capex | 1,387 | 965 | 1,057 | 824 | 903 | 9.6% |
Ratios
|
|---|
| Revenue growth | 18.2% | 2.7% | 2.2% | 4.1% | -2.2% | |
| EBITDA growth | 20.4% | -11.8% | 9.8% | 19.0% | -10.2% | |
|
|---|
| EBITDA Margin | 13.2% | 11.3% | 12.2% | 13.9% | 12.8% | -1.1% |
| Net Income Margin | 3.4% | 2.6% | 4.5% | 2.4% | 2.4% | -0.0% |
| CAPEX, % of revenue | 9.8% | 6.6% | 7.1% | 5.3% | 5.9% | 0.6% |
|
|---|
| ROIC | 21.6% | 14.5% | 14.5% | 14.6% | 12.3% | -2.4% |
| ROE | 21.9% | 15.2% | 23.7% | 12.0% | 11.0% | -0.9% |
| Net Debt/EBITDA | 1.8x | 2.5x | 1.9x | 1.3x | 1.4x | 0.1x |
Peers in Auto Parts & Equipment
Below we provide Sona Koyo Steering Systems benchmarking against other companies in Auto Parts & 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 |
|---|
| 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.8% | 2.2% | 5.0% | 8.8% | 2.6% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | - | 2.7% | 2.2% | 4.1% | -2.2% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 10.5% | 9.7% | 10.0% | 9.9% | 11.5% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 13.2% | 11.3% | 12.2% | 13.9% | 12.8% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.6% | 4.5% | 4.8% | 4.5% | 5.5% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 9.8% | 6.6% | 7.1% | 5.3% | 5.9% |
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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| |
|---|
| Median (49 companies) | 15.7% | 11.9% | 12.7% | 14.3% | 12.7% |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 21.6% | 14.5% | 14.5% | 14.6% | 12.3% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 1.7x | 0.7x | 0.0x | 0.1x |
|---|
| Sona Koyo Steering Systems ($SONASTEER) | 1.8x | 2.5x | 1.9x | 1.3x | 1.4x |
