Munjal Showa revenue decreased on 8.6% and EBITDA Margin showed almost no change
20-05-2016 • About Munjal Showa (
$MUNJALSHOW) • By InTwits
Munjal Showa reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 7.7% in FY2016 vs. 7.7% in FY2015 vs. 8.2% in FY2012
- Munjal Showa has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: ₹882m in FY2016, ₹477m in FY2015, ₹888m in FY2014, ₹1,658m in FY2013, ₹556m in FY2012
- The company has highly profitable business model: ROIC is 19.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 8.6%. Revenue decline was accelerating on average at -5.9 pp per annum in FY2012-FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.2 pp from 6.6% to 11.8% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 6.8% and was growing since that time.
Net Income margin decreased slightly on 0.53 pp from 4.6% to 4.1% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.2% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.0%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.85% and was growing since that time.
Return on investment
The company operates at good ROIC (19.8%) and ROE (14.2%). ROIC decreased on 5.1 pp from 24.9% to 19.8% in FY2016. ROE decreased on 5.6 pp from 19.7% to 14.2% in FY2016. ROE stuck to a declining trend at -3.2 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash jumped on 38.7%.
Financial and operational results
Munjal Showa ($MUNJALSHOW) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 15,300 | 15,814 | 15,980 | 16,430 | 15,018 | -8.6% |
| EBITDA | 1,251 | 1,097 | 1,083 | 1,267 | 1,161 | -8.4% |
| Net Income | 671 | 607 | 697 | 756 | 612 | -19.1% |
Balance Sheet
|
|---|
| Cash | 44 | 175 | 151 | 11 | 15 | 38.7% |
| Short Term Debt | 524 | 213 | 0 | 0 | 0 | |
| Long Term Debt | 211 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 214 | 176 | 135 | 161 | 181 | 12.6% |
Ratios
|
|---|
| Revenue growth | 20.8% | 3.4% | 1.0% | 2.8% | -8.6% | |
| EBITDA growth | 43.2% | -12.3% | -1.3% | 17.0% | -8.4% | |
|
|---|
| EBITDA Margin | 8.2% | 6.9% | 6.8% | 7.7% | 7.7% | 0.0% |
| Net Income Margin | 4.4% | 3.8% | 4.4% | 4.6% | 4.1% | -0.5% |
| CAPEX, % of revenue | 1.4% | 1.1% | 0.8% | 1.0% | 1.2% | 0.2% |
|
|---|
| ROIC | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% | -5.1% |
| ROE | 29.2% | 21.7% | 21.2% | 19.7% | 14.2% | -5.6% |
| Net Debt/EBITDA | 0.6x | 0.0x | -0.1x | -0.0x | -0.0x | -0.0x |
Peers in Auto Parts & Equipment
Below you can find Munjal Showa 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 ($IPRINGLTD) | 4.0% | 2.4% | -0.1% | 19.5% | - |
| |
|---|
| Median (37 companies) | 16.8% | 2.2% | 5.0% | 8.8% | 1.1% |
|---|
| Munjal Showa ($MUNJALSHOW) | - | 3.4% | 1.0% | 2.8% | -8.6% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (43 companies) | 11.1% | 9.8% | 10.2% | 10.3% | 11.0% |
|---|
| Munjal Showa ($MUNJALSHOW) | 8.2% | 6.9% | 6.8% | 7.7% | 7.7% |
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 ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | - |
| |
|---|
| Median (25 companies) | 5.8% | 4.7% | 5.2% | 4.7% | 5.8% |
|---|
| Munjal Showa ($MUNJALSHOW) | 1.4% | 1.1% | 0.8% | 1.0% | 1.2% |
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% |
| 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% |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | - |
| |
|---|
| Median (49 companies) | 15.7% | 11.9% | 12.7% | 14.3% | 15.4% |
|---|
| Munjal Showa ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% |
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 ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (41 companies) | 1.2x | 2.0x | 0.7x | 0.1x | 0.2x |
|---|
| Munjal Showa ($MUNJALSHOW) | 0.6x | 0.0x | -0.1x | -0.0x | -0.0x |
