Kabra Extrusiontechnik CAPEX jumped on 103% and Revenue surged on 10.2%
25-05-2016 • About Kabra Extrusiontechnik (
$KABRAEXTRU) • By InTwits
Kabra Extrusiontechnik reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 12.8% in FY2016 vs. 11.5% in FY2015 vs. 9.6% in FY2012
- Kabra Extrusiontechnik has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: ₹484m in FY2016, ₹239m in FY2015, ₹11m in FY2014, ₹32m in FY2013, ₹124m in FY2012
- The company has highly profitable business model: ROIC is 17.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.4x while industry average is 0.4x
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 surged on 10.2%. During FY2012-FY2016 Revenue growth topped in FY2014 at 28.4% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 20.1 pp from 23.2% to 3.0% in FY2016. EBITDA Margin grew at 0.84 pp per annum in the last 5 years.
Net Income margin decreased slightly on 0.74 pp from 8.3% to 7.5% in FY2016. Net Income margin grew at 0.65 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 16.2% in FY2016. Kabra Extrusiontechnik's CAPEX/Revenue surged on 14.4 pp from 1.8% in FY2013 to 16.2% in FY2016. For the last three years the average CAPEX/Revenue was 8.5%. To fuel its fast growth the company made large investments to CAPEX (127% of EBITDA). During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.51% and was growing since that time.
Return on investment
The company operates at good ROIC (17.0%) and ROE (15.0%). ROIC increased on 3.1 pp from 13.9% to 17.0% in FY2016. ROE decreased slightly on 1.5 pp from 16.5% to 15.0% in FY2016. ROE followed a growing trend at 1.9 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.7x to 0.4x in FY2016. Debt dropped on 18.3% while cash decreased on 7.8%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 0.9x and was declining since that time.
Kabra Extrusiontechnik has short term refinancing risk: cash is only 2.3% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 8.1x and P/E 13.0x while industy averages are 17.8x and 21.9x.
Financial and operational results
Kabra Extrusiontechnik ($KABRAEXTRU) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,903 | 1,738 | 2,232 | 2,713 | 2,991 | 10.2% |
| EBITDA | 182 | 164 | 233 | 312 | 382 | 22.3% |
| Net Income | 100 | 109 | 142 | 224 | 225 | 0.3% |
Balance Sheet
|
|---|
| Cash | 16 | 5 | 3 | 4 | 4 | -7.8% |
| Short Term Debt | 109 | 155 | 173 | 210 | 171 | -18.3% |
| Long Term Debt | | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 124 | 32 | 11 | 239 | 484 | 102.8% |
Ratios
|
|---|
| Revenue growth | -13.3% | -8.7% | 28.4% | 21.6% | 10.2% | |
| EBITDA growth | -54.3% | -10.1% | 42.2% | 33.7% | 22.3% | |
|
|---|
| EBITDA Margin | 9.6% | 9.4% | 10.5% | 11.5% | 12.8% | 1.3% |
| Net Income Margin | 5.3% | 6.3% | 6.4% | 8.3% | 7.5% | -0.7% |
| CAPEX, % of revenue | 6.5% | 1.8% | 0.5% | 8.8% | 16.2% | 7.4% |
|
|---|
| ROIC | | | 11.9% | 13.9% | 17.0% | 3.1% |
| ROE | 9.1% | 9.3% | 11.4% | 16.5% | 15.0% | -1.5% |
| Net Debt/EBITDA | 0.5x | 0.9x | 0.7x | 0.7x | 0.4x | -0.2x |
Peers in Industrial Machinery
Below we provide Kabra Extrusiontechnik benchmarking against other companies in Industrial Machinery 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 |
|---|
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | - | 22.3% | 27.3% |
| Akar Tools ($AKARTOOL) | 21.1% | 2.1% | -2.3% | 16.7% | - |
| Honda Siel Power Products ($HONDAPOWER) | - | 2.4% | 5.0% | 16.5% | 4.7% |
| Mazda ($MAZDALTD) | 22.1% | 14.7% | -15.6% | 16.2% | - |
| Abc Bearings ($ABCBEARS) | - | -15.5% | -6.6% | 15.7% | 10.3% |
| |
|---|
| Median (27 companies) | 17.1% | 2.2% | -1.2% | 3.3% | 5.7% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | - | -8.7% | 28.4% | 21.6% | 10.2% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bell Agromachina ($BELAGRO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 40.5% | - |
| Dhp India ($DHPIND) | - | - | - | 26.3% | - |
| Shilp Gravures ($SHILGRAVQ) | - | - | - | 19.4% | - |
| Solitaire Machine Tools ($SOLIMAC) | - | - | - | 19.4% | - |
| Wendt (India) ($WENDT) | 28.3% | 21.6% | 18.6% | 19.0% | 16.5% |
| |
|---|
| Median (43 companies) | 11.3% | 9.3% | 10.1% | 10.2% | 11.8% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 9.6% | 9.4% | 10.5% | 11.5% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 14.0% | - |
| Wendt (India) ($WENDT) | 13.5% | 9.0% | 8.8% | 9.4% | 9.3% |
| Ingersoll-Rand (India) ($INGERRAND) | 4.3% | 10.9% | 3.6% | 9.2% | - |
| Forbes & Company ($FORBESCO) | 1.8% | 2.6% | 3.0% | 5.1% | - |
| Lakshmi Machine Works ($LAXMIMACH) | 8.3% | 2.3% | 3.4% | 4.9% | 4.6% |
| |
|---|
| Median (21 companies) | 5.6% | 4.4% | 3.0% | 3.1% | 2.4% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 6.5% | 1.8% | 0.5% | 8.8% | 16.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greaves Cotton ($GREAVESCOT) | - | 24.8% | 16.3% | 26.7% | 25.7% |
| Gmm Pfaudler ($GMM) | -76.2% | 6.8% | 17.4% | 18.2% | 16.1% |
| Lakshmi Machine Works ($LAXMIMACH) | 18.0% | 11.7% | 16.2% | 17.6% | 18.2% |
| Honda Siel Power Products ($HONDAPOWER) | 16.9% | 8.8% | 11.5% | 15.3% | 18.3% |
| Wendt (India) ($WENDT) | 38.2% | 20.2% | 16.2% | 15.1% | 12.6% |
| |
|---|
| Median (52 companies) | 13.1% | 10.7% | 9.2% | 12.1% | 15.8% |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | - | - | 11.9% | 13.9% | 17.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Forbes & Company ($FORBESCO) | 2.2x | 3.3x | 4.7x | 6.3x | - |
| Nitin Fire Protection Industries ($NITINFIRE) | 3.6x | 3.5x | 3.0x | 3.7x | - |
| Elgi Equipments ($ELGIEQUIP) | -1.2x | 2.3x | 2.7x | 3.3x | - |
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | 3.7x | 3.2x | 2.7x |
| Elecon Engineering Co ($ELECON) | 3.0x | 3.2x | 4.0x | 3.1x | 3.9x |
| |
|---|
| Median (34 companies) | 0.9x | 1.5x | 0.0x | 0.0x | 0.0x |
|---|
| Kabra Extrusiontechnik ($KABRAEXTRU) | 0.5x | 0.9x | 0.7x | 0.7x | 0.4x |
