Genus Power Infrastructures reports 47.7% Net Income growth in 2016 and 1.0 pp EBITDA Margin growth from 13.8% to 14.8%

25-05-2016 • About Genus Power Infrastructures ($GENUSPOWER) • By InTwits

Genus Power Infrastructures reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

Genus Power Infrastructures has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 3.2%.
CAPEX is quite volatile: ₹457m in FY2016, ₹496m in FY2015, ₹384m in FY2014, ₹249m in FY2013, ₹2,236m in FY2012
The company has highly profitable business model: ROIC is 12.7%

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 6.3%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.0 pp from 13.8% to 14.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 11.0% and was growing since that time.

Net Income margin increased on 3.3 pp from 5.8% to 9.1% in FY2016.

Investments (CAPEX, working capital and M&A)

In FY2016 the company had CAPEX/Revenue of 3.7%. Genus Power Infrastructures's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 2.6%.

Return on investment

The company operates at good ROIC (12.7%) and ROE (13.7%). ROIC decreased slightly on 0.82 pp from 13.5% to 12.7% in FY2016. ROE increased on 2.1 pp from 11.5% to 13.7% in FY2016.

Leverage (Debt)

Debt level is 1.5x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 2.7x to 1.5x in FY2016. Debt dropped on 35.4% while cash jumped on 47.7%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 3.9x and was declining since that time.

Genus Power Infrastructures has short term refinancing risk: cash is only 16.3% of short term debt.

Valuation and dividends

Genus Power Infrastructures's trades at EV/EBITDA 12.2x and P/E 17.3x while industy averages are 17.8x and 21.9x. Genus Power Infrastructures's EV/(EBITDA-CAPEX) is 16.3x with the industry average at 22.8x.

Financial and operational results

Genus Power Infrastructures ($GENUSPOWER) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	7,055	6,523	7,655	9,150	8,577	-6.3%
EBITDA	996	719	1,054	1,264	1,272	0.6%
Net Income	661	446	605	531	785	47.7%
Balance Sheet
Cash	46	39	95	257	379	47.7%
Short Term Debt	3,013	2,552	2,851	3,437	2,318	-32.6%
Long Term Debt	221	302	259	169	13	-92.5%
Cash flow
Capex	237	238	155	203	318	56.8%
Ratios
Revenue growth	-1.2%	-7.5%	17.4%	19.5%	-6.3%
EBITDA growth	-3.3%	-27.8%	46.6%	19.9%	0.6%

EBITDA Margin	14.1%	11.0%	13.8%	13.8%	14.8%	1.0%
Net Income Margin	9.4%	6.8%	7.9%	5.8%	9.1%	3.3%
CAPEX, % of revenue	3.4%	3.6%	2.0%	2.2%	3.7%	1.5%

ROIC	12.4%	8.0%	12.2%	13.5%	12.7%	-0.8%
ROE	16.2%	9.5%	13.1%	11.5%	13.7%	2.1%
Net Debt/EBITDA	3.2x	3.9x	2.9x	2.7x	1.5x	-1.1x

Peers in Other Elect.Equip./ Prod.

Below we provide Genus Power Infrastructures benchmarking against other companies in Other Elect.Equip./ Prod. 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
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 ($ECEIND)	-	-30.9%	-14.8%	58.1%	-12.8%
Pitti Laminations ($PITTILAM)	-	-23.9%	-19.4%	35.9%	-8.3%
Salzer Electronics ($SALZER)	23.4%	2.6%	6.9%	15.9%	-
Median (14 companies)	26.6%	-1.9%	-9.3%	5.3%	-6.3%
Genus Power Infrastructures ($GENUSPOWER)	-	-7.5%	17.4%	19.5%	-6.3%

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%	-
Salzer Electronics ($SALZER)	12.9%	12.5%	12.4%	12.6%	-
Pitti Laminations ($PITTILAM)	15.6%	13.6%	13.2%	12.0%	6.2%
Birla Ericsson Optical ($BIRLAERIC)	2.6%	9.0%	12.3%	11.3%	10.7%
Median (16 companies)	8.0%	8.8%	8.7%	7.8%	6.2%
Genus Power Infrastructures ($GENUSPOWER)	14.1%	11.0%	13.8%	13.8%	14.8%

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 ($KECL)	1.8%	0.7%	1.8%	2.3%	0.3%
Median (6 companies)	2.8%	4.4%	4.1%	5.8%	0.3%
Genus Power Infrastructures ($GENUSPOWER)	3.4%	3.6%	2.0%	2.2%	3.7%

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%	-
Hbl Power Systems ($HBLPOWER)	10.6%	10.1%	4.3%	6.7%	-
Indosolar ($INDOSOLAR)	-14.0%	-6.8%	-5.2%	2.2%	-
Malvica Engineering ($MALVICAE)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (23 companies)	8.9%	9.2%	7.0%	2.2%	-6.2%
Genus Power Infrastructures ($GENUSPOWER)	12.4%	8.0%	12.2%	13.5%	12.7%

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	-
Birla Ericsson Optical ($BIRLAERIC)	14.5x	2.9x	1.3x	1.6x	0.0x
Median (13 companies)	3.6x	4.3x	2.6x	0.0x	0.0x
Genus Power Infrastructures ($GENUSPOWER)	3.2x	3.9x	2.9x	2.7x	1.5x

Genus Power Infrastructures stock price chart

Genus Power Infrastructures financials

mln.	FY2010	FY2011	FY2012

Revenue	10,902	7,142	7,055
EBITDA	936.4	1,030	996.3
Net income	263.9	610.8	661.0
CAPEX	185.0	209.2	236.7
Debt	2,481	3,002	3,233
Cash	47.823	98.239	45.651

About Genus Power Infrastructures

Genus Power Infrastructures Limited is engaged in power business in India and internationally. The company primarily manufactures, distributes, and exports metering solutions, power backup solutions, and hybrid microcircuits solutions. It offers metering solutions comprising residential single phase and three phase energy meters, industrial meters, ABT compliant grid and sub-station meters, agricultural meters, audit meters, low voltage/high voltage distribution systems, prepayment electricity meters, distribution transformer meters, portable reference meters, feeder monitoring and management systems, smart street light management systems, billing and meter data management software, and RF/PLCC/GSM/GPRS modems. The company also provides inverters, home UPS, online UPS, tubular batteries, solar products, and static-UPS; solar hybrid inverters and UPS, and solar PCU; and thick film hybrid microcircuits modules. In addition, it undertakes engineering, construction, and contracts, including switchyard/sub-stations, transmission lines, rural electrification, distribution lines and HVDS, and process industry plant electrification projects. Genus Power Infrastructures Limited serves utilities, municipalities, housing communities, industrial energy audits, power trading companies, and households/businesses. The company was formerly known as Genus Overseas Electronics Limited and changed its name to Genus Power Infrastructures Limited in March 2007. Genus Power Infrastructures Limited was founded in 1992 and is based in Jaipur, India.