Shipping Corporation Of India Net Income surged on 87.8% and EBITDA Margin increased on 4.8 pp from 23.5% to 28.3%
26-05-2016 • About Shipping Corporation Of India (
$SCI) • By InTwits
Shipping Corporation Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 28.3% in FY2016 vs. 23.5% in FY2015 vs. 7.8% in FY2012
- EBITDA Margin is quite volatile: 28.3% in FY2016, 23.5% in FY2015, 14.2% in FY2014, 6.1% in FY2013, 7.8% in FY2012
- Shipping Corporation Of India has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.3%. At the same time it's a lot of higher than industry average of 9.2%.
- CAPEX is quite volatile: ₹3,844m in FY2016, ₹7,159m in FY2015, ₹11,346m in FY2014, ₹29,163m in FY2013, ₹21,889m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.3%
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 slightly on 1.8%. Revenue decline was accelerating on average at -2.8 pp per annum in FY2012-FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 23.5% to 28.3% in FY2016. EBITDA Margin grew at 5.8 pp per annum in FY2012-FY2016.
Net Income margin increased on 4.4 pp from 4.8% to 9.3% in FY2016. Net Income margin followed a growing trend at 4.9 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Shipping Corporation Of India had CAPEX/Revenue of 9.4%. CAPEX/Revenue dropped on 60.8 pp from 70.2% in FY2013 to 9.4% in FY2016. Average CAPEX/Revenue for the last three years was 18.0%. CAPEX as a % of Revenue followed a declining trend at -14.9 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (4.3%) and ROE (5.6%). ROIC increased on 2.9 pp from 1.5% to 4.3% in FY2016. ROE increased on 2.5 pp from 3.1% to 5.6% in FY2016. ROIC stuck to a growing trend at 1.9 pp per annum in the last 5 years. ROE stuck to a growing trend at 2.8 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 5.1x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 5.7x to 4.0x in FY2016. Debt dropped on 13.7% while cash increased on 2.4%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 27.2x and was declining since that time.
Shipping Corporation Of India has short term refinancing risk: cash is only 98.9% of short term debt.
Management team
Shipping Corporation Of India's CFO is Harjeet Kaur Joshi. Harjeet Kaur Joshi has 5 years tenure at the company.
Financial and operational results
Shipping Corporation Of India ($SCI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 38,208 | 41,536 | 41,552 | 41,538 | 40,783 | -1.8% |
| Gross Profit | 4,924 | | | | | |
| EBITDA | 2,991 | 2,533 | 5,886 | 9,761 | 11,536 | 18.2% |
| Net Income | -4,282 | -1,143 | -2,747 | 2,009 | 3,773 | 87.8% |
Balance Sheet
|
|---|
| Cash | 14,417 | 12,642 | 10,182 | 12,555 | 12,857 | 2.4% |
| Short Term Debt | 7,972 | 76,629 | 16,862 | 12,632 | 12,998 | 2.9% |
| Long Term Debt | 55,258 | 5,015 | 65,707 | 55,699 | 45,980 | -17.4% |
Cash flow
|
|---|
| Capex | 21,889 | 29,163 | 11,346 | 7,159 | 3,844 | -46.3% |
Ratios
|
|---|
| Revenue growth | 7.8% | 8.7% | 0.0% | -0.0% | -1.8% | |
| EBITDA growth | -69.0% | -15.3% | 132.4% | 65.8% | 18.2% | |
|
|---|
| Gross Margin | 12.9% | | | | | |
| EBITDA Margin | 7.8% | 6.1% | 14.2% | 23.5% | 28.3% | 4.8% |
| Net Income Margin | -11.2% | -2.8% | -6.6% | 4.8% | 9.3% | 4.4% |
| CAPEX, % of revenue | 57.3% | 70.2% | 27.3% | 17.2% | 9.4% | -7.8% |
|
|---|
| ROIC | -2.5% | -3.6% | -1.8% | 1.5% | 4.3% | 2.9% |
| ROE | -6.2% | -1.7% | -4.2% | 3.1% | 5.6% | 2.5% |
| Net Debt/EBITDA | 16.3x | 27.2x | 12.3x | 5.7x | 4.0x | -1.7x |
Peers in Shipping
Below we provide Shipping Corporation Of India benchmarking against other companies in Shipping 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 |
|---|
| Great Eastern Shipping Co ($GESHIP) | - | 1.6% | 2.3% | 11.8% | 10.8% |
| Shreyas Shipping & Logistics ($SHREYAS) | - | 43.6% | 25.3% | 12.0% | 9.1% |
| Essar Shipping ($ESSARSHPNG) | - | 14.5% | -42.1% | 2.8% | -10.3% |
| |
|---|
| Median (3 companies) | 14.0% | 8.7% | 13.8% | 10.1% | 9.1% |
|---|
| Shipping Corporation Of India ($SCI) | - | 8.7% | 0.0% | -0.0% | -1.8% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Shipping Co ($GESHIP) | 37.1% | 39.0% | 47.1% | 44.7% | 52.0% |
| Essar Shipping ($ESSARSHPNG) | 25.3% | 25.8% | 29.6% | 14.3% | 14.0% |
| Shreyas Shipping & Logistics ($SHREYAS) | 9.0% | 10.7% | 9.4% | 13.6% | 13.0% |
| |
|---|
| Median (3 companies) | 31.2% | 32.4% | 38.4% | 29.5% | 14.0% |
|---|
| Shipping Corporation Of India ($SCI) | 7.8% | 6.1% | 14.2% | 23.5% | 28.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 7.5% | 17.9% | 1.3% | 11.3% | 18.4% |
| Great Eastern Shipping Co ($GESHIP) | 51.0% | 48.2% | 20.4% | 45.5% | 17.9% |
| Essar Shipping ($ESSARSHPNG) | 8.2% | 8.2% | 1.3% | 4.9% | 0.5% |
| |
|---|
| Median (3 companies) | 23.9% | 33.1% | 10.9% | 8.1% | 17.9% |
|---|
| Shipping Corporation Of India ($SCI) | 57.3% | 70.2% | 27.3% | 17.2% | 9.4% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 4.8% | 9.4% | 9.8% | 20.7% | 14.7% |
| Great Eastern Shipping Co ($GESHIP) | 4.4% | 4.5% | 6.0% | 7.1% | 9.9% |
| Essar Shipping ($ESSARSHPNG) | - | 4.1% | 0.6% | -1.3% | -2.1% |
| |
|---|
| Median (3 companies) | 4.8% | 6.7% | 6.6% | 6.9% | 9.9% |
|---|
| Shipping Corporation Of India ($SCI) | -2.5% | -3.6% | -1.8% | 1.5% | 4.3% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essar Shipping ($ESSARSHPNG) | 7.2x | 5.8x | 10.1x | 13.3x | 15.5x |
| Shreyas Shipping & Logistics ($SHREYAS) | 3.0x | 3.0x | 2.3x | 1.3x | 2.5x |
| Great Eastern Shipping Co ($GESHIP) | 5.9x | 5.8x | 3.7x | 2.2x | 1.3x |
| |
|---|
| Median (3 companies) | 6.3x | 5.8x | 5.0x | 3.9x | 2.5x |
|---|
| Shipping Corporation Of India ($SCI) | 16.3x | 27.2x | 12.3x | 5.7x | 4.0x |
