Arshiya Net Debt / EBITDA dropped on 35.1x from 80.6x to 45.5x in 2016 while EBITDA surged on 73.2%
25-05-2016 • About Arshiya (
$ARSHIYA) • By InTwits
Arshiya reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arshiya is a company in decline: FY2016 revenue growth was -4.8%, 5 years revenue CAGR was -17.8%
- EBITDA Margin is quite volatile: 17.7% in FY2016, 9.7% in FY2015, -6.3% in FY2014, 15.5% in FY2013, 25.7% in FY2012
- Arshiya has high CAPEX intensity: 5 year average CAPEX/Revenue was 27.0%. At the same time it's a lot of higher than industry average of 18.8%.
- CAPEX is quite volatile: ₹12m in FY2016, ₹8m in FY2015, ₹160m in FY2014, ₹4,417m in FY2013, ₹9,776m in FY2012
- The company has unprofitable business model: ROIC is -1.5%
- It operates with high leverage: Net Debt/EBITDA is 45.5x while industry average is 12.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Arshiya's Revenue decreased on 4.8%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at -54.7% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.0 pp from 9.7% to 17.7% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2014 at -6.3% and was growing since that time.
Net Income margin dropped on 49.4 pp from -146% to -196% in FY2016. Net Income margin declined at -54.9 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.40% in FY2016. Arshiya showed big decline in CAPEX/Revenue of 38.4 pp from 38.8% in FY2013 to 0.40% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.3%. CAPEX as a % of Revenue followed a declining trend at -22.3 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 45.5x and Debt / EBITDA is 45.7x. Net Debt / EBITDA dropped on 35.1x from 80.6x to 45.5x in FY2016. Debt decreased on 2.0% while cash surged on 115%.
Arshiya has short term refinancing risk: cash is only 0.5% of short term debt.
Financial and operational results
Arshiya ($ARSHIYA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,573 | 11,396 | 5,166 | 3,242 | 3,087 | -4.8% |
| EBITDA | 2,717 | 1,765 | -326 | 315 | 546 | 73.2% |
| Net Income | 1,208 | -1,272 | -8,462 | -4,740 | -6,038 | |
Balance Sheet
|
|---|
| Cash | 629 | 74 | 100 | 45 | 96 | 115.5% |
| Short Term Debt | 1,926 | 6,026 | 4,970 | 4,635 | 19,397 | 318.5% |
| Long Term Debt | 20,960 | 20,438 | 25,091 | 20,816 | 5,534 | -73.4% |
Cash flow
|
|---|
| Capex | 9,776 | 4,417 | 160 | 8 | 12 | 54.0% |
Ratios
|
|---|
| Revenue growth | 28.7% | 7.8% | -54.7% | -37.2% | -4.8% | |
| EBITDA growth | 69.8% | -35.0% | -118.5% | -196.6% | 73.2% | |
|
|---|
| EBITDA Margin | 25.7% | 15.5% | -6.3% | 9.7% | 17.7% | 8.0% |
| Net Income Margin | 11.4% | -11.2% | -163.8% | -146.2% | -195.6% | -49.4% |
| CAPEX, % of revenue | 92.5% | 38.8% | 3.1% | 0.2% | 0.4% | 0.2% |
|
|---|
| ROIC | 9.1% | 3.5% | -3.3% | -2.2% | -1.5% | 0.7% |
| ROE | 15.0% | -14.6% | -117.5% | -119.6% | | |
| Net Debt/EBITDA | 8.2x | 15.0x | | 80.6x | 45.5x | -35.1x |
Peers in Transportation - Logistics
Below you can find Arshiya benchmarking vs. other companies in Transportation - Logistics 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snowman Logistics ($SNOWMAN) | - | 85.2% | 34.9% | 32.3% | 18.3% |
| Sical Logistics ($SICAL) | - | -2.4% | 10.7% | -1.7% | 1.0% |
| Gati ($GATI) | - | 6.5% | - | - | 0.5% |
| Gateway Distriparks ($GDL) | - | 16.1% | 6.2% | 9.7% | -5.4% |
| |
|---|
| Median (4 companies) | - | 11.3% | 10.7% | 9.7% | 0.7% |
|---|
| Arshiya ($ARSHIYA) | - | 7.8% | -54.7% | -37.2% | -4.8% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gateway Distriparks ($GDL) | 30.4% | 25.6% | 25.4% | 29.4% | 24.3% |
| Snowman Logistics ($SNOWMAN) | 25.7% | 22.8% | 26.0% | 23.2% | 21.1% |
| Sical Logistics ($SICAL) | 10.4% | 12.2% | 11.9% | 10.1% | 12.9% |
| Gati ($GATI) | 6.7% | 6.5% | - | 8.6% | 8.0% |
| |
|---|
| Median (4 companies) | 18.0% | 17.5% | 25.4% | 16.7% | 17.0% |
|---|
| Arshiya ($ARSHIYA) | 25.7% | 15.5% | -6.3% | 9.7% | 17.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snowman Logistics ($SNOWMAN) | 46.2% | 100.1% | 76.9% | 46.9% | 58.8% |
| Sical Logistics ($SICAL) | 19.4% | 21.9% | 10.2% | 19.1% | 21.5% |
| Gateway Distriparks ($GDL) | 13.7% | 25.1% | 19.6% | 14.0% | 10.8% |
| Gati ($GATI) | - | 3.1% | - | 7.4% | 2.5% |
| |
|---|
| Median (4 companies) | 19.4% | 23.5% | 19.6% | 16.5% | 16.2% |
|---|
| Arshiya ($ARSHIYA) | 92.5% | 38.8% | 3.1% | 0.2% | 0.4% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gateway Distriparks ($GDL) | 15.3% | 13.0% | 11.7% | 15.6% | 11.8% |
| Gati ($GATI) | 4.8% | 4.8% | 0.0% | 8.3% | 7.8% |
| Snowman Logistics ($SNOWMAN) | 9.4% | 10.0% | 8.1% | 5.2% | 3.9% |
| Sical Logistics ($SICAL) | 4.1% | 4.3% | 4.2% | 2.6% | 3.8% |
| |
|---|
| Median (4 companies) | 7.1% | 7.4% | 6.1% | 6.8% | 5.9% |
|---|
| Arshiya ($ARSHIYA) | 9.1% | 3.5% | -3.3% | -2.2% | -1.5% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sical Logistics ($SICAL) | 6.4x | 7.3x | 8.1x | 9.9x | 8.9x |
| Gati ($GATI) | 4.1x | 5.2x | - | 2.9x | 3.5x |
| Snowman Logistics ($SNOWMAN) | -0.8x | 3.4x | 3.3x | 0.1x | 2.5x |
| Gateway Distriparks ($GDL) | 0.2x | 0.7x | 1.0x | 0.4x | 0.8x |
| |
|---|
| Median (4 companies) | 2.1x | 4.3x | 3.3x | 1.7x | 3.0x |
|---|
| Arshiya ($ARSHIYA) | 8.2x | 15.0x | - | 80.6x | 45.5x |
