Harita Seating Systems EBITDA surged on 47.9% and Revenue jumped on 10.1%
20-05-2016 • About Harita Seating Systems (
$HARITASEAT) • By InTwits
Harita Seating Systems reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Harita Seating Systems has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 5.9%
- CAPEX is quite volatile: ₹105m in FY2016, ₹81m in FY2015, ₹68m in FY2014, ₹144m in FY2013, ₹223m in FY2012
- The company has highly profitable business model: ROIC is 22.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Harita Seating Systems's Revenue jumped on 10.1%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from 6.3% to 8.4% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 6.3%.
Net Income margin increased on 2.5 pp from 1.5% to 4.1% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at 1.5% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.6% in FY2016. The company's CAPEX/Revenue decreased slightly on 1.1 pp from 2.7% in FY2013 to 1.6% in FY2016. Average CAPEX/Revenue for the last three years was 1.5%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 1.3% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (22.4%) and ROE (29.8%). ROIC increased on 9.9 pp from 12.5% to 22.4% in FY2016. ROE surged on 18.0 pp from 11.8% to 29.8% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 12.5%. During the last 5 years ROE bottomed in FY2014 at 11.2% and was growing since that time.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.0x Debt / EBITDA. Debt dropped on 93.1% while cash increased on 4.6%.
Harita Seating Systems has no short term refinancing risk: cash is higher than short term debt (565.8%).
Valuation and dividends
The company's trades at EV/EBITDA 6.8x and P/E 14.3x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 8.4x with the industry average at 22.8x.
Financial and operational results
Harita Seating Systems ($HARITASEAT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,660 | 5,274 | 5,123 | 5,788 | 6,369 | 10.1% |
| EBITDA | 468 | 415 | 369 | 363 | 537 | 47.9% |
| Net Income | 165 | 116 | 78 | 89 | 259 | 192.1% |
Balance Sheet
|
|---|
| Cash | 28 | 30 | 60 | 93 | 97 | 4.6% |
| Short Term Debt | 329 | 334 | 298 | 248 | 17 | -93.1% |
| Long Term Debt | 128 | 64 | 8 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 223 | 144 | 68 | 81 | 105 | 29.6% |
Ratios
|
|---|
| Revenue growth | 23.7% | -6.8% | -2.9% | 13.0% | 10.1% | |
| EBITDA growth | 23.9% | -11.3% | -11.1% | -1.6% | 47.9% | |
|
|---|
| EBITDA Margin | 8.3% | 7.9% | 7.2% | 6.3% | 8.4% | 2.2% |
| Net Income Margin | 2.9% | 2.2% | 1.5% | 1.5% | 4.1% | 2.5% |
| CAPEX, % of revenue | 3.9% | 2.7% | 1.3% | 1.4% | 1.6% | 0.2% |
|
|---|
| ROIC | 16.6% | 16.2% | 12.7% | 12.5% | 22.4% | 9.9% |
| ROE | 32.3% | 18.7% | 11.2% | 11.8% | 29.8% | 18.0% |
| Net Debt/EBITDA | 0.9x | 0.9x | 0.7x | 0.4x | -0.1x | -0.6x |
Peers in Auto Parts & Equipment
Below we provide Harita Seating 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.8% | 2.6% | 5.0% | 8.6% | -0.4% |
|---|
| Harita Seating Systems ($HARITASEAT) | - | -6.8% | -2.9% | 13.0% | 10.1% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 11.1% | 9.8% | 10.2% | 10.3% | 11.0% |
|---|
| Harita Seating Systems ($HARITASEAT) | 8.3% | 7.9% | 7.2% | 6.3% | 8.4% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.7% | 5.2% | 4.7% | 5.8% |
|---|
| Harita Seating Systems ($HARITASEAT) | 3.9% | 2.7% | 1.3% | 1.4% | 1.6% |
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% |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (49 companies) | 15.7% | 11.9% | 14.5% | 14.6% | 15.4% |
|---|
| Harita Seating Systems ($HARITASEAT) | 16.6% | 16.2% | 12.7% | 12.5% | 22.4% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.2x |
|---|
| Harita Seating Systems ($HARITASEAT) | 0.9x | 0.9x | 0.7x | 0.4x | -0.1x |
