Gabriel India reports 25.3% Net Income growth in 2016 and almost no change in Revenue of 14,264
20-05-2016 • About Gabriel India (
$GABRIEL) • By InTwits
Gabriel India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 8.9% in FY2016 vs. 8.2% in FY2015 vs. 8.8% in FY2012
- Gabriel India has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 9.0%.
- CAPEX is quite volatile: ₹3,492m in FY2016, ₹762m in FY2015, ₹1,946m in FY2014, ₹1,650m in FY2013, ₹3,346m in FY2012
- The company has highly profitable business model: ROIC is 25.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gabriel India's Revenue showed almost no change in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.79 pp from 8.2% to 8.9% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 6.9% and was growing since that time.
Net Income margin increased slightly on 1.1 pp from 4.2% to 5.3% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2013 at 3.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.7% in FY2016. Gabriel India's CAPEX/Revenue decreased on 3.0 pp from 5.8% in FY2013 to 2.7% in FY2016. For the last three years the average CAPEX/Revenue was 2.8%.
Return on investment
The company operates at high and attractive ROIC (25.0%) and ROE (21.3%). ROIC increased slightly on 1.0 pp from 24.0% to 25.0% in FY2016. ROE increased slightly on 1.7 pp from 19.7% to 21.3% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2013 at 15.5% and was growing since that time. During FY2012-FY2016 ROE bottomed in FY2013 at 15.6% and was growing since that time.
Leverage (Debt)
Debt level is -0.2x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt dropped on 17.7% while cash jumped on 1,075%.
Gabriel India has no short term refinancing risk: cash is higher than short term debt (1,224.0%).
Valuation and dividends
Gabriel India's trades at EV/EBITDA 9.9x and P/E 17.1x while industy averages are 17.8x and 21.9x. Gabriel India's EV/(EBITDA-CAPEX) is 14.3x with the industry average at 22.8x.
Financial and operational results
Gabriel India ($GABRIEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,153 | 11,960 | 12,745 | 14,298 | 14,264 | -0.2% |
| EBITDA | 985 | 831 | 910 | 1,165 | 1,276 | 9.4% |
| Net Income | 531 | 381 | 426 | 600 | 752 | 25.3% |
Balance Sheet
|
|---|
| Cash | 25 | 33 | 40 | 30 | 351 | 1,074.9% |
| Short Term Debt | 984 | 642 | 564 | 71 | 29 | -59.8% |
| Long Term Debt | 247 | 164 | 96 | 61 | 81 | 31.1% |
Cash flow
|
|---|
| Capex | 350 | 690 | 396 | 348 | 388 | 11.7% |
Ratios
|
|---|
| Revenue growth | 16.0% | 7.2% | 6.6% | 12.2% | -0.2% | |
| EBITDA growth | 10.1% | -15.6% | 9.5% | 28.1% | 9.4% | |
|
|---|
| EBITDA Margin | 8.8% | 6.9% | 7.1% | 8.2% | 8.9% | 0.8% |
| Net Income Margin | 4.8% | 3.2% | 3.3% | 4.2% | 5.3% | 1.1% |
| CAPEX, % of revenue | 3.1% | 5.8% | 3.1% | 2.4% | 2.7% | 0.3% |
|
|---|
| ROIC | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% | 1.0% |
| ROE | 25.4% | 15.6% | 15.7% | 19.7% | 21.3% | 1.7% |
| Net Debt/EBITDA | 1.2x | 0.9x | 0.7x | 0.1x | -0.2x | -0.3x |
Peers in Auto Parts & Equipment
Below we provide Gabriel India 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.8% | 2.2% | 4.7% | 8.6% | 1.0% |
|---|
| Gabriel India ($GABRIEL) | - | 7.2% | 6.6% | 12.2% | -0.2% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 11.1% | 9.8% | 10.2% | 10.3% | 11.0% |
|---|
| Gabriel India ($GABRIEL) | 8.8% | 6.9% | 7.1% | 8.2% | 8.9% |
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 ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | - |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.5% | 5.2% | 4.7% | 5.8% |
|---|
| Gabriel India ($GABRIEL) | 3.1% | 5.8% | 3.1% | 2.4% | 2.7% |
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 ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | - |
| |
|---|
| Median (49 companies) | 15.7% | 11.9% | 12.7% | 14.3% | 15.4% |
|---|
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.2x |
|---|
| Gabriel India ($GABRIEL) | 1.2x | 0.9x | 0.7x | 0.1x | -0.2x |
