Trf Debt increased on 5.3% and Revenue showed almost no change
16-05-2016 • About Trf (
$TRF) • By InTwits
Trf reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.8% in FY2016, -0.9% in FY2015, 1.3% in FY2014, -1.5% in FY2013, 6.3% in FY2012
- Trf has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is 2.6%
- It operates with high leverage: Net Debt/EBITDA is 19.0x while industry average is 5.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from -0.92% to 2.8% in FY2016.
Net Income margin increased on 2.5 pp from -5.8% to -3.2% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.98% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.64%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 0.44% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 19.0x and Debt / EBITDA is 20.3x. Net Debt / EBITDA jumped19.0x from to 19.0x in FY2016. Debt increased on 5.3% while cash dropped on 40.6%.
Trf has short term refinancing risk: cash is only 9.4% of short term debt.
Financial and operational results
Trf ($TRF) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,274 | 11,148 | 11,748 | 11,259 | 11,225 | -0.3% |
| EBITDA | 839 | -164 | 158 | -104 | 312 | |
| Net Income | 132 | -917 | -289 | -650 | -363 | |
Balance Sheet
|
|---|
| Cash | 706 | 636 | 551 | 719 | 427 | -40.6% |
| Short Term Debt | 2,790 | 2,600 | 3,644 | 3,603 | 4,555 | 26.4% |
| Long Term Debt | 2,242 | 2,699 | 2,605 | 2,414 | 1,779 | -26.3% |
Cash flow
|
|---|
| Capex | 204 | 124 | 51 | 58 | 110 | 87.3% |
Ratios
|
|---|
| Revenue growth | 19.2% | -16.0% | 5.4% | -4.2% | -0.3% | |
| EBITDA growth | 236.4% | -119.5% | -196.8% | -165.6% | -400.1% | |
|
|---|
| EBITDA Margin | 6.3% | -1.5% | 1.3% | -0.9% | 2.8% | 3.7% |
| Net Income Margin | 1.0% | -8.2% | -2.5% | -5.8% | -3.2% | 2.5% |
| CAPEX, % of revenue | 1.5% | 1.1% | 0.4% | 0.5% | 1.0% | 0.5% |
|
|---|
| ROIC | 11.4% | -4.1% | 0.5% | -3.2% | 2.6% | 5.8% |
| ROE | 8.6% | -77.1% | -43.4% | | | |
| Net Debt/EBITDA | 5.2x | | 36.0x | | 19.0x |
Peers in Commercial Vehicles
Below you can find Trf benchmarking vs. other companies in Commercial Vehicles 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 |
|---|
| Ashok Leyland ($ASHOKLEY) | - | -3.3% | -8.0% | 33.6% | 36.0% |
| Tata Motors ($TATAMOTORS) | 35.7% | 13.5% | 23.3% | 13.4% | - |
| Hmt ($HMT) | -1.3% | -15.9% | -23.9% | 2.2% | - |
| Beml ($BEML) | 2.7% | 3.2% | 3.7% | -3.5% | - |
| V.S.T.Tillers Tractors ($VSTTILLERS) | 24.2% | -9.2% | 29.6% | -11.6% | - |
| |
|---|
| Median (6 companies) | 18.2% | -6.3% | -2.2% | -0.7% | 36.0% |
|---|
| Trf ($TRF) | - | -16.0% | 5.4% | -4.2% | -0.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| V.S.T.Tillers Tractors ($VSTTILLERS) | 14.0% | 15.1% | 19.2% | 19.1% | - |
| Tata Motors ($TATAMOTORS) | 12.3% | 12.2% | 13.5% | 14.4% | - |
| Ashok Leyland ($ASHOKLEY) | 9.7% | 7.0% | 4.1% | 10.7% | 14.3% |
| Brady & Morris Engineering Co ($BRADYM) | - | - | - | 6.9% | - |
| Stone India ($STONEIN) | - | - | - | 4.7% | - |
| |
|---|
| Median (12 companies) | 11.0% | 9.6% | 8.8% | 3.4% | 14.3% |
|---|
| Trf ($TRF) | 6.3% | -1.5% | 1.3% | -0.9% | 2.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Motors ($TATAMOTORS) | 8.5% | 10.2% | 11.8% | 12.4% | - |
| V.S.T.Tillers Tractors ($VSTTILLERS) | 2.4% | 6.7% | 5.9% | 4.1% | - |
| Abg Shipyard ($ABGSHIP) | 21.0% | 9.1% | 15.2% | 3.7% | - |
| Ashok Leyland ($ASHOKLEY) | 5.4% | 5.2% | 3.6% | 1.6% | 1.3% |
| Beml ($BEML) | 4.4% | 4.8% | 1.5% | 1.5% | - |
| |
|---|
| Median (8 companies) | 4.9% | 6.0% | 4.7% | 1.5% | 1.3% |
|---|
| Trf ($TRF) | 1.5% | 1.1% | 0.4% | 0.5% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| V.S.T.Tillers Tractors ($VSTTILLERS) | 36.4% | 29.3% | 41.0% | 28.0% | - |
| Tata Motors ($TATAMOTORS) | 20.1% | 16.6% | 17.2% | 17.8% | - |
| Ashok Leyland ($ASHOKLEY) | 12.2% | 5.8% | -0.5% | 7.6% | 15.7% |
| Cranex ($CRANEX) | 5.5% | 5.3% | 5.2% | 5.3% | - |
| Beml ($BEML) | 2.6% | -2.9% | 1.9% | 0.6% | - |
| |
|---|
| Median (12 companies) | 10.6% | 7.5% | 3.4% | 5.3% | 15.7% |
|---|
| Trf ($TRF) | 11.4% | -4.1% | 0.5% | -3.2% | 2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cranex ($CRANEX) | 10.0x | 9.9x | 9.0x | 10.8x | - |
| Beml ($BEML) | 5.8x | - | 8.0x | 6.9x | - |
| Ashok Leyland ($ASHOKLEY) | 2.5x | 5.0x | 17.8x | 5.0x | 3.1x |
| Tata Motors ($TATAMOTORS) | 1.7x | 1.7x | 1.2x | 1.2x | - |
| Brady & Morris Engineering Co ($BRADYM) | - | 1.5x | - | 0.0x | - |
| |
|---|
| Median (7 companies) | 2.8x | 1.7x | 8.0x | 1.2x | 3.1x |
|---|
