Container Corporation Of India reports 40.8% CAPEX decline in 2016 while 2.9% Revenue growth
25-05-2016 • About Container Corporation Of India (
$CONCOR) • By InTwits
Container Corporation Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Container Corporation Of India has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: ₹5,019m in FY2016, ₹8,479m in FY2015, ₹4,927m in FY2014, ₹5,921m in FY2013, ₹2,304m in FY2012
- The company has business model with low profitability: ROIC is 9.6%
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 increased on 2.9%. During FY2012-FY2016 Revenue growth topped in FY2014 at 19.6% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 11.9% to 13.0% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin decreased on 4.9 pp from 17.6% to 12.7% in FY2016. Net Income margin stuck to a declining trend at -2.0 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Container Corporation Of India had CAPEX/Revenue of 8.1%. Container Corporation Of India's CAPEX/Revenue decreased on 5.2 pp from 13.3% in FY2013 to 8.1% in FY2016. Average CAPEX/Revenue for the last three years was 10.5%.
Return on investment
The company operates at low ROIC (9.6%) and ROE (10.1%). ROIC decreased on 3.7 pp from 13.3% to 9.6% in FY2016. ROE decreased on 4.6 pp from 14.7% to 10.1% in FY2016. ROIC declined at -1.3 pp per annum in FY2012-FY2016. ROE stuck to a declining trend at -1.4 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.8x and Debt / EBITDA is 0.1x. Debt decreased on 9.0% while cash dropped on 63.4%.
Container Corporation Of India has no short term refinancing risk: cash is higher than short term debt (3,155.3%).
Management team
Container Corporation Of India's CFO P Alli Rani has spent 11 years with the company.
Financial and operational results
Container Corporation Of India ($CONCOR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 41,009 | 44,450 | 53,167 | 60,068 | 61,787 | 2.9% |
| SG&A | | | 32 | 32 | 28 | -11.0% |
| EBITDA | 10,229 | 10,495 | 11,971 | 14,055 | 11,865 | -15.6% |
| Net Income | 8,657 | 9,306 | 9,443 | 10,544 | 7,818 | -25.9% |
Balance Sheet
|
|---|
| Cash | 9,033 | 11,010 | 27,499 | 29,083 | 10,637 | -63.4% |
| Short Term Debt | 347 | 385 | 17 | 344 | 337 | -1.9% |
| Long Term Debt | 234 | 0 | 1,160 | 1,308 | 1,166 | -10.8% |
Cash flow
|
|---|
| Capex | 2,304 | 5,921 | 4,927 | 8,479 | 5,019 | -40.8% |
Ratios
|
|---|
| Revenue growth | 5.2% | 8.4% | 19.6% | 13.0% | 2.9% | |
| EBITDA growth | 0.6% | 2.6% | 14.1% | 17.4% | -15.6% | |
|
|---|
| EBITDA Margin | 24.9% | 23.6% | 22.5% | 23.4% | 19.2% | -4.2% |
| SG&A, % of revenue | | | 0.1% | 0.1% | 0.0% | -0.0% |
| Net Income Margin | 21.1% | 20.9% | 17.8% | 17.6% | 12.7% | -4.9% |
| CAPEX, % of revenue | 5.6% | 13.3% | 9.3% | 14.1% | 8.1% | -6.0% |
|
|---|
| ROIC | 15.5% | 14.1% | 14.2% | 13.3% | 9.6% | -3.7% |
| ROE | 16.5% | 15.8% | 14.4% | 14.7% | 10.1% | -4.6% |
| Net Debt/EBITDA | -0.8x | -1.0x | -2.2x | -2.0x | -0.8x | 1.2x |
Peers in Transport Related Services
Below we provide Container Corporation Of India benchmarking against other companies in Transport Related Services 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | - | -26.3% | -27.2% | 26.6% | 73.1% |
| Til ($TIL) | 0.4% | -15.1% | 11.8% | 12.1% | - |
| Action Construction Equipment ($ACE) | - | -22.1% | -7.8% | -1.8% | 6.4% |
| |
|---|
| Median (3 companies) | 0.4% | -22.1% | -7.8% | 12.1% | 39.7% |
|---|
| Container Corporation Of India ($CONCOR) | - | 8.4% | 19.6% | 13.0% | 2.9% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 70.1% | 69.8% | 57.9% | 58.3% | 66.9% |
| Til ($TIL) | 5.4% | 7.0% | 8.2% | 10.1% | - |
| Action Construction Equipment ($ACE) | 6.5% | 5.6% | 4.1% | 3.3% | 5.0% |
| Kernex Microsystems (India) ($KERNEX) | - | - | - | -35.3% | - |
| |
|---|
| Median (4 companies) | 6.5% | 7.0% | 8.2% | 6.7% | 36.0% |
|---|
| Container Corporation Of India ($CONCOR) | 24.9% | 23.6% | 22.5% | 23.4% | 19.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 51.3% | 2.8% | 3.9% | 16.6% | 92.6% |
| Action Construction Equipment ($ACE) | 8.8% | 6.5% | 4.6% | 6.0% | 6.1% |
| Til ($TIL) | 11.7% | 5.6% | 2.7% | 3.4% | - |
| |
|---|
| Median (3 companies) | 11.7% | 5.6% | 3.9% | 6.0% | 49.4% |
|---|
| Container Corporation Of India ($CONCOR) | 5.6% | 13.3% | 9.3% | 14.1% | 8.1% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Til ($TIL) | 6.8% | 5.7% | 7.7% | 10.7% | - |
| Sanghvi Movers ($SANGHVIMOV) | 15.3% | 8.1% | 1.7% | 5.0% | 18.8% |
| Action Construction Equipment ($ACE) | 10.9% | 5.2% | 2.2% | 2.4% | 4.6% |
| Kernex Microsystems (India) ($KERNEX) | 5.7% | - | - | - | - |
| |
|---|
| Median (4 companies) | 8.8% | 5.7% | 2.2% | 5.0% | 11.7% |
|---|
| Container Corporation Of India ($CONCOR) | 15.5% | 14.1% | 14.2% | 13.3% | 9.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Construction Equipment ($ACE) | 2.6x | 4.2x | 5.6x | 6.3x | 3.6x |
| Til ($TIL) | 4.6x | 5.8x | 5.1x | 4.5x | - |
| Sanghvi Movers ($SANGHVIMOV) | 2.2x | 2.5x | 3.3x | 1.7x | 1.3x |
| |
|---|
| Median (3 companies) | 2.4x | 3.3x | 5.1x | 4.5x | 2.5x |
|---|
| Container Corporation Of India ($CONCOR) | -0.8x | -1.0x | -2.2x | -2.0x | -0.8x |
