Sanghvi Movers reports 1,351% Net Income growth in 2016 and 8.6 pp EBITDA Margin growth from 58.3% to 66.9%
25-05-2016 • About Sanghvi Movers (
$SANGHVIMOV) • By InTwits
Sanghvi Movers reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Sanghvi Movers has high CAPEX intensity: 5 year average CAPEX/Revenue was 33.5%. At the same time it's a lot of higher than industry average of 27.6%.
- CAPEX is quite volatile: ₹4,906m in FY2016, ₹507m in FY2015, ₹95m in FY2014, ₹94m in FY2013, ₹2,313m in FY2012
- The company has highly profitable business model: ROIC is 18.8%
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 jumped on 73.1%. During the last 5 years Revenue growth bottomed in FY2014 at -27.2% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 8.6 pp from 58.3% to 66.9% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 57.9% and was growing since that time.
Net Income margin surged on 19.4 pp from 2.6% to 22.1% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at -6.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 92.6% in FY2016. Sanghvi Movers's CAPEX/Revenue surged on 89.8 pp from 2.8% in FY2013 to 92.6% in FY2016. For the last three years the average CAPEX/Revenue was 37.7%. Sanghvi Movers has spent a lot to CAPEX (138% of EBITDA) to fuel its growth. During the last 5 years CAPEX as a % of Revenue bottomed in FY2013 at 2.8% and was growing since that time.
Return on investment
The company operates at good ROIC (18.8%) and ROE (16.7%). ROIC surged on 13.8 pp from 5.0% to 18.8% in FY2016. ROE surged on 15.4 pp from 1.2% to 16.7% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 1.7% and was growing since that time. During the last 5 years ROE bottomed in FY2014 at -2.2% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.3x. Net Debt / EBITDA dropped on 0.4x from 1.7x to 1.3x in FY2016. Debt surged on 40.9% while cash dropped on 86.9%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 3.3x and was declining since that time.
Sanghvi Movers has no short term refinancing risk: cash is higher than short term debt (257.9%).
Financial and operational results
Sanghvi Movers ($SANGHVIMOV) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,505 | 3,321 | 2,417 | 3,060 | 5,296 | 73.1% |
| EBITDA | 3,157 | 2,318 | 1,400 | 1,785 | 3,544 | 98.5% |
| Net Income | 1,018 | 409 | -145 | 81 | 1,169 | 1,350.7% |
Balance Sheet
|
|---|
| Cash | 62 | 187 | 45 | 278 | 37 | -86.9% |
| Short Term Debt | 3,905 | 2,088 | 2,019 | 629 | 14 | -97.7% |
| Long Term Debt | 3,097 | 3,827 | 2,629 | 2,711 | 4,692 | 73.1% |
Cash flow
|
|---|
| Capex | 2,313 | 94 | 95 | 507 | 4,906 | 867.3% |
Ratios
|
|---|
| Revenue growth | 24.7% | -26.3% | -27.2% | 26.6% | 73.1% | |
| EBITDA growth | 23.4% | -26.6% | -39.6% | 27.5% | 98.5% | |
|
|---|
| EBITDA Margin | 70.1% | 69.8% | 57.9% | 58.3% | 66.9% | 8.6% |
| Net Income Margin | 22.6% | 12.3% | -6.0% | 2.6% | 22.1% | 19.4% |
| CAPEX, % of revenue | 51.3% | 2.8% | 3.9% | 16.6% | 92.6% | 76.1% |
|
|---|
| ROIC | 15.3% | 8.1% | 1.7% | 5.0% | 18.8% | 13.8% |
| ROE | 17.4% | 6.3% | -2.2% | 1.2% | 16.7% | 15.4% |
| Net Debt/EBITDA | 2.2x | 2.5x | 3.3x | 1.7x | 1.3x | -0.4x |
Peers in Transport Related Services
Below we provide Sanghvi Movers 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 |
|---|
| Container Corporation Of India ($CONCOR) | - | 8.4% | 19.6% | 13.0% | 2.9% |
| Til ($TIL) | 0.4% | -15.1% | 11.8% | 12.1% | - |
| Action Construction Equipment ($ACE) | - | -22.1% | -7.8% | -1.8% | 6.4% |
| |
|---|
| Median (3 companies) | 0.4% | -15.1% | 11.8% | 12.1% | 4.6% |
|---|
| Sanghvi Movers ($SANGHVIMOV) | - | -26.3% | -27.2% | 26.6% | 73.1% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Container Corporation Of India ($CONCOR) | 24.9% | 23.6% | 22.5% | 23.4% | 19.2% |
| Til ($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% | 12.1% |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 70.1% | 69.8% | 57.9% | 58.3% | 66.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Container Corporation Of India ($CONCOR) | 5.6% | 13.3% | 9.3% | 14.1% | 8.1% |
| 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) | 8.8% | 6.5% | 4.6% | 6.0% | 7.1% |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 51.3% | 2.8% | 3.9% | 16.6% | 92.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Container Corporation Of India ($CONCOR) | 15.5% | 14.1% | 14.2% | 13.3% | 9.6% |
| Til ($TIL) | 6.8% | 5.7% | 7.7% | 10.7% | - |
| Action Construction Equipment ($ACE) | 10.9% | 5.2% | 2.2% | 2.4% | 4.6% |
| Kernex Microsystems (India) ($KERNEX) | 5.7% | - | - | - | - |
| |
|---|
| Median (4 companies) | 8.8% | 5.7% | 7.7% | 10.7% | 7.1% |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 15.3% | 8.1% | 1.7% | 5.0% | 18.8% |
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 | - |
| Container Corporation Of India ($CONCOR) | -0.8x | -1.0x | -2.2x | -2.0x | -0.8x |
| |
|---|
| Median (3 companies) | 2.3x | 2.1x | 5.1x | 4.5x | 1.4x |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 2.2x | 2.5x | 3.3x | 1.7x | 1.3x |
