Motherson Sumi Systems EBITDA surged on 19.9% and Revenue jumped on 10.7%
17-05-2016 • About Motherson Sumi Systems (
$MOTHERSUMI) • By InTwits
Motherson Sumi Systems reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Motherson Sumi Systems is a fast growth stock: FY2016 revenue growth was 10.7%, 5 year revenue CAGR was 36.0% at FY2016 ROIC 25.1%
- Motherson Sumi Systems has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's in pair with industry average of 5.7%
- CAPEX is quite volatile: ₹15,877m in FY2016, ₹3,461m in FY2015, ₹3,801m in FY2014, ₹3,732m in FY2013, ₹2,809m in FY2012
- The company has highly profitable business model: ROIC is 25.1%
- It operates with high leverage: Net Debt/EBITDA is 1.1x 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 surged on 10.7%. Revenue decline was accelerating on average at -19.4 pp per annum in the last 5 years. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.76 pp from 9.2% to 10.0% in FY2016. EBITDA Margin grew at 0.68 pp per annum in FY2012-FY2016.
Net Income margin increased slightly on 0.83 pp from 2.5% to 3.3% in FY2016. Net Income margin stuck to a growing trend at 0.39 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Motherson Sumi Systems's CAPEX/Revenue was 5.8% in FY2016. Motherson Sumi Systems's CAPEX/Revenue increased slightly on 1.3 pp from 4.5% in FY2013 to 5.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 5.4%. Motherson Sumi Systems invested a big chunk of EBITDA (58.4%) to CAPEX to fuel its growth. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2013 at 4.5% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (25.1%) and ROE (33.7%). ROIC showed almost no change in FY2016. ROE increased on 6.2 pp from 27.5% to 33.7% in FY2016. ROIC stuck to a growing trend at 3.2 pp per annum in the last 5 years. ROE grew at 4.4 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 1.0x to 1.1x in FY2016. Debt jumped on 23.5% while cash increased on 2.2%. Net Debt/EBITDA followed a declining trend at -0.7x per annum in the last 5 years.
Motherson Sumi Systems has no short term refinancing risk: cash is higher than short term debt (145.1%).
Financial and operational results
Motherson Sumi Systems ($MOTHERSUMI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 147,766 | 253,124 | 304,279 | 346,731 | 383,952 | 10.7% |
| EBITDA | 10,896 | 19,607 | 28,955 | 32,070 | 38,448 | 19.9% |
| Net Income | 2,596 | 4,445 | 7,650 | 8,625 | 12,737 | 47.7% |
Balance Sheet
|
|---|
| Cash | 4,557 | 5,944 | 9,061 | 18,919 | 19,329 | 2.2% |
| Short Term Debt | 16,412 | 21,880 | 18,563 | 10,447 | 13,324 | 27.5% |
| Long Term Debt | 29,611 | 27,159 | 29,834 | 40,859 | 50,023 | 22.4% |
Cash flow
|
|---|
| Capex | 10,758 | 11,389 | 14,120 | 19,443 | 22,452 | 15.5% |
Ratios
|
|---|
| Revenue growth | 79.1% | 71.3% | 20.2% | 14.0% | 10.7% | |
| EBITDA growth | 20.7% | 79.9% | 47.7% | 10.8% | 19.9% | |
|
|---|
| EBITDA Margin | 7.4% | 7.7% | 9.5% | 9.2% | 10.0% | 0.8% |
| Net Income Margin | 1.8% | 1.8% | 2.5% | 2.5% | 3.3% | 0.8% |
| CAPEX, % of revenue | 7.3% | 4.5% | 4.6% | 5.6% | 5.8% | 0.2% |
|
|---|
| ROIC | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% | 0.2% |
| ROE | 14.9% | 21.4% | 29.2% | 27.5% | 33.7% | 6.2% |
| Net Debt/EBITDA | 3.8x | 2.2x | 1.4x | 1.0x | 1.1x | 0.1x |
Peers in Auto Parts & Equipment
Below you can find Motherson Sumi Systems 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.8% | 2.2% | 4.7% | 8.6% | 2.5% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | - | 71.3% | 20.2% | 14.0% | 10.7% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 11.1% | 9.8% | 10.2% | 10.3% | 12.1% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 7.4% | 7.7% | 9.5% | 9.2% | 10.0% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.6% | 4.7% | 5.2% | 4.5% | 5.9% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 7.3% | 4.5% | 4.6% | 5.6% | 5.8% |
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 ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | - |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | - |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | - |
| |
|---|
| Median (49 companies) | 16.4% | 11.9% | 12.7% | 14.3% | 12.3% |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 1.7x | 0.7x | 0.0x | 0.2x |
|---|
| Motherson Sumi Systems ($MOTHERSUMI) | 3.8x | 2.2x | 1.4x | 1.0x | 1.1x |
