Mirc Electronics reports 100% EBITDA decline in 2016 and 4.2 pp EBITDA Margin decline from 4.1% to -0.020%
26-05-2016 • About Mirc Electronics (
$MIRCELECTR) • By InTwits
Mirc Electronics reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Mirc Electronics is a company in decline: FY2016 revenue growth was -28.1%, 5 years revenue CAGR was -16.8%
- The company operates at negative EBITDA Margin: -0.0%
- EBITDA Margin is quite volatile: -0.0% in FY2016, 4.1% in FY2015, 0.5% in FY2014, -0.0% in FY2013, 1.4% in FY2012
- Mirc Electronics has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is -3.5%
- It operates with high leverage: Net Debt/EBITDA is 9.8x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 28.1%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 4.1% to -0.020% in FY2016.
Net Income margin decreased on 2.1 pp from -0.43% to -2.5% in FY2016.
Investments (CAPEX, working capital and M&A)
Mirc Electronics's CAPEX/Revenue was 0.063% in FY2016. CAPEX/Revenue decreased slightly on 1.2 pp from 1.3% in FY2013 to 0.063% in FY2016. Average CAPEX/Revenue for the last three years was 0.25%.
Return on investment
The company operates at negative ROIC (-3.5%) and ROE (-13.5%). ROIC dropped on 10.8 pp from 7.3% to -3.5% in FY2016. ROE dropped on 10.2 pp from -3.3% to -13.5% in FY2016.
Leverage (Debt)
Debt level is 9.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 4.9x from 4.9x to in FY2016. Debt decreased on 7.7% while cash surged on 5,353%.
Mirc Electronics has short term refinancing risk: cash is only 9.6% of short term debt.
Financial and operational results
Mirc Electronics ($MIRCELECTR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,737 | 13,161 | 13,041 | 10,735 | 7,722 | -28.1% |
| EBITDA | 229 | -4 | 61 | 444 | -2 | -100.3% |
| Net Income | -387 | -312 | -621 | -46 | -195 | |
Balance Sheet
|
|---|
| Cash | 69 | 33 | 7 | 3 | 185 | 5,353.2% |
| Short Term Debt | 1,236 | 2,922 | 2,711 | 2,156 | 1,928 | -10.6% |
| Long Term Debt | 150 | 0 | 26 | 14 | 76 | 430.1% |
Cash flow
|
|---|
| Capex | 123 | 169 | 83 | 4 | 5 | 16.8% |
Ratios
|
|---|
| Revenue growth | -13.8% | -21.4% | -0.9% | -17.7% | -28.1% | |
| EBITDA growth | -70.7% | -101.5% | -1,826.9% | 634.0% | -100.3% | |
|
|---|
| EBITDA Margin | 1.4% | -0.0% | 0.5% | 4.1% | -0.0% | -4.2% |
| Net Income Margin | -2.3% | -2.4% | -4.8% | -0.4% | -2.5% | -2.1% |
| CAPEX, % of revenue | 0.7% | 1.3% | 0.6% | 0.0% | 0.1% | 0.0% |
|
|---|
| ROIC | -0.0% | -4.0% | -2.2% | 7.3% | -3.5% | -10.8% |
| ROE | -16.1% | -15.1% | -38.8% | -3.3% | -13.5% | -10.2% |
| Net Debt/EBITDA | 5.8x | | 45.1x | 4.9x | |
Peers in Consumer Electronics
Below you can find Mirc Electronics benchmarking vs. other companies in Consumer Electronics 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 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 4.5% | 16.5% | 18.3% | 43.0% | - |
| Sharp India ($SHARP) | -25.1% | -7.4% | 98.9% | 22.2% | - |
| Whirlpool Of India ($WHIRLPOOL) | - | 4.3% | 2.2% | 16.2% | 5.9% |
| Blue Star ($BLUESTARCO) | -5.5% | 3.9% | 1.3% | 8.4% | - |
| |
|---|
| Median (4 companies) | -5.5% | 4.1% | 10.2% | 19.2% | 5.9% |
|---|
| Mirc Electronics ($MIRCELECTR) | - | -21.4% | -0.9% | -17.7% | -28.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 8.9% | 8.4% | 7.9% | 10.1% | 10.9% |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 4.3% | 5.4% | 5.6% | 9.0% | - |
| Sharp India ($SHARP) | 7.2% | 4.8% | 6.3% | 5.7% | - |
| Blue Star ($BLUESTARCO) | -0.8% | 3.1% | 5.4% | 5.5% | - |
| Vxl Instruments ($VXLINSTR) | - | - | - | 0.4% | - |
| |
|---|
| Median (5 companies) | 5.8% | 5.1% | 5.9% | 5.7% | 10.9% |
|---|
| Mirc Electronics ($MIRCELECTR) | 1.4% | -0.0% | 0.5% | 4.1% | -0.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.1% | 12.0% | 3.8% | 4.2% | - |
| Whirlpool Of India ($WHIRLPOOL) | 4.5% | 3.0% | 3.0% | 2.6% | 2.1% |
| Blue Star ($BLUESTARCO) | 1.9% | 1.0% | 1.4% | 1.9% | - |
| |
|---|
| Median (3 companies) | 3.3% | 3.0% | 3.0% | 2.6% | 2.1% |
|---|
| Mirc Electronics ($MIRCELECTR) | 0.7% | 1.3% | 0.6% | 0.0% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 34.9% | 27.0% | 21.1% | 29.3% | 28.2% |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 6.5% | 9.6% | 8.4% | 25.6% | - |
| Blue Star ($BLUESTARCO) | -6.1% | 6.9% | 12.6% | 13.4% | - |
| Calcom Vision ($CALCOM) | - | -14.3% | - | - | - |
| Vxl Instruments ($VXLINSTR) | 13.7% | 4.5% | - | - | - |
| |
|---|
| Median (6 companies) | 7.9% | 5.7% | 12.6% | 25.6% | 28.2% |
|---|
| Mirc Electronics ($MIRCELECTR) | -0.0% | -4.0% | -2.2% | 7.3% | -3.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Star ($BLUESTARCO) | - | 4.5x | 2.7x | 2.0x | - |
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.0x | 1.4x | 2.0x | 1.0x | - |
| Sharp India ($SHARP) | 1.2x | 0.4x | 0.0x | 0.6x | - |
| Vxl Instruments ($VXLINSTR) | 1.2x | 3.9x | - | 0.0x | - |
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.7x | -1.3x | -1.6x | -2.2x |
| |
|---|
| Median (5 companies) | 1.2x | 2.6x | 1.0x | 0.6x | -2.2x |
|---|
| Mirc Electronics ($MIRCELECTR) | 5.8x | - | 45.1x | 4.9x | - |
