Pitti Laminations EBITDA dropped on 53.0% and Revenue decreased on 8.3%

20-05-2016 • About Pitti Laminations ($PITTILAM) • By InTwits

Pitti Laminations reported FY2016 financial results today. Here are the key drivers of the company's long term financial model: EBITDA Margin is declining: 6.2% in FY2016 vs. 12.0% in FY2015 vs. 15.6% in FY2012.

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Pitti Laminations's Revenue decreased on 8.3%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 12.0% to 6.2% in FY2016. EBITDA Margin declined at -2.0 pp per annum in the last 5 years.

Net Income margin decreased on 5.9 pp from 2.8% to -3.1% in FY2016. Net Income margin stuck to a declining trend at -1.8 pp per annum in FY2012-FY2016.

Financial and operational results

Pitti Laminations ($PITTILAM) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	4,038	3,073	2,478	3,368	3,089	-8.3%
EBITDA	630	417	327	405	190	-53.0%
Net Income	224	98	42	93	-96	-202.5%
Balance Sheet
Cash	6	63	95
Short Term Debt	1,363	1,305	941
Long Term Debt	167	142	211
Cash flow
Capex	199
Ratios
Revenue growth	60.4%	-23.9%	-19.4%	35.9%	-8.3%
EBITDA growth	93.2%	-33.8%	-21.6%	23.9%	-53.0%

EBITDA Margin	15.6%	13.6%	13.2%	12.0%	6.2%	-5.9%
Net Income Margin	5.6%	3.2%	1.7%	2.8%	-3.1%	-5.9%
CAPEX, % of revenue	4.9%

ROIC	26.4%	12.8%	9.7%
ROE	26.7%	9.4%	3.8%
Net Debt/EBITDA	2.4x	3.3x	3.2x	0.0x	0.0x

Peers in Other Elect.Equip./ Prod.

Below you can find Pitti Laminations benchmarking vs. other companies in Other Elect.Equip./ Prod. 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
Indosolar ($INDOSOLAR)	-85.0%	-34.7%	-71.0%	1,797.0%	-
B.C. Power Controls ($BCP)	129.0%	-2.2%	2.2%	115.3%	-
Ece Industries ($ECEIND)	-	-30.9%	-14.8%	58.1%	-12.8%
Genus Power Infrastructures ($GENUSPOWER)	-1.2%	-7.5%	17.4%	19.5%	-
Salzer Electronics ($SALZER)	23.4%	2.6%	6.9%	15.9%	-
Median (14 companies)	18.0%	-1.9%	-3.6%	5.3%	-8.6%
Pitti Laminations ($PITTILAM)	-	-23.9%	-19.4%	35.9%	-8.3%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Malvica Engineering ($MALVICAE)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (1 company)	0.0%	0.0%	0.0%	0.0%	0.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Fluidomat ($FLUIDOM)	-	-	-	28.0%	-
Indosolar ($INDOSOLAR)	-114.4%	-52.7%	-140.0%	16.3%	-
Genus Power Infrastructures ($GENUSPOWER)	14.1%	11.0%	13.8%	13.8%	-
Salzer Electronics ($SALZER)	12.9%	12.5%	12.4%	12.6%	-
Birla Ericsson Optical ($BIRLAERIC)	2.6%	9.0%	12.3%	11.3%	10.7%
Median (16 companies)	8.0%	8.8%	8.7%	7.8%	10.7%
Pitti Laminations ($PITTILAM)	15.6%	13.6%	13.2%	12.0%	6.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Indosolar ($INDOSOLAR)	311.2%	148.3%	42.3%	26.9%	-
Diamond Power Infrastructure ($DIAPOWER)	-	6.8%	8.4%	8.7%	-
Salzer Electronics ($SALZER)	6.8%	5.6%	4.1%	8.2%	-
Birla Ericsson Optical ($BIRLAERIC)	1.3%	4.4%	4.0%	3.5%	-
Kirloskar Electric Company ($KECL)	1.8%	0.7%	1.8%	2.3%	-
Median (7 companies)	2.8%	4.2%	4.0%	3.5%	-

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Birla Ericsson Optical ($BIRLAERIC)	-2.2%	8.2%	27.3%	16.6%	-
Salzer Electronics ($SALZER)	14.6%	12.7%	13.0%	14.6%	-
Genus Power Infrastructures ($GENUSPOWER)	12.4%	8.0%	12.2%	13.5%	-
Hbl Power Systems ($HBLPOWER)	10.6%	10.1%	4.3%	6.7%	-
Indosolar ($INDOSOLAR)	-14.0%	-6.8%	-5.2%	2.2%	-
Median (23 companies)	8.9%	8.1%	7.8%	4.5%	0.0%
Pitti Laminations ($PITTILAM)	26.4%	12.8%	9.7%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Diamond Power Infrastructure ($DIAPOWER)	3.3x	5.2x	4.8x	46.8x	-
Indosolar ($INDOSOLAR)	-	-	-	20.3x	-
Hbl Power Systems ($HBLPOWER)	4.1x	4.4x	6.8x	4.7x	-
Salzer Electronics ($SALZER)	1.9x	2.2x	2.6x	2.7x	-
Genus Power Infrastructures ($GENUSPOWER)	3.2x	3.9x	2.9x	2.7x	-
Median (13 companies)	3.6x	4.3x	2.6x	0.0x	0.0x
Pitti Laminations ($PITTILAM)	2.4x	3.3x	3.2x	0.0x	0.0x

Pitti Laminations stock price chart

Pitti Laminations financials

mln.	FY2010	FY2011	FY2012

Revenue	4,087	2,518	4,038
EBITDA	222.6	325.9	629.7
Net income	2.911	84.869	224.2
CAPEX	4.273	21.121	198.5
Debt	756.0	956.9	1,529
Cash	14.376	9.576	6.378

About Pitti Laminations

Pitti Laminations Limited manufactures electrical stamping and laminations in India and internationally. The company offers electrical laminations for application in industrial motors, DC machines, alternators, traction motors, pumps, train lighting generators, aeronautics, medical diagnostics equipment, windmill generators, laminations for specialized applications, die-cast rotors, assembled stators, and built-up rotors duly balanced. It also produces small laminations for compressors, as well as press tools, progressive tools, jigs, and fixtures. The company serves power generation, transportation, industrial motors, locomotives, aerospace, automobile, earth moving and mining, oil and gas, and infrastructure industries. Pitti Laminations Limited was incorporated in 1983 and is based in Hyderabad, India.