Shreyas Shipping & Logistics reports 77.4% CAPEX growth in 2016 and 9.1% Revenue growth
26-05-2016 • About Shreyas Shipping & Logistics (
$SHREYAS) • By InTwits
Shreyas Shipping & Logistics reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Shreyas Shipping & Logistics is a fast growth stock: FY2016 revenue growth was 9.1%, 5 year revenue CAGR was 25.6% at FY2016 ROIC 14.7%
- Shreyas Shipping & Logistics has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.3%. At the same time it's a lot of higher than industry average of 9.2%.
- CAPEX is quite volatile: ₹1,095m in FY2016, ₹617m in FY2015, ₹63m in FY2014, ₹698m in FY2013, ₹204m in FY2012
- The company has highly profitable business model: ROIC is 14.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Shreyas Shipping & Logistics's Revenue increased on 9.1%. Revenue decline was accelerating on average at -9.8 pp per annum in FY2012-FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.90 pp from 20.9% to 20.0% in FY2016.
Net Income margin decreased on 3.0 pp from 11.2% to 8.3% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Shreyas Shipping & Logistics had CAPEX/Revenue of 18.4%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 10.3%. The company investments to CAPEX were large: 141% of EBITDA.
Return on investment
The company operates at high and attractive ROE (22.2%) while ROIC is a bit lower (14.7%). ROIC decreased on 6.0 pp from 20.7% to 14.7% in FY2016. ROE dropped on 13.6 pp from 35.7% to 22.2% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 20.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.6x. Net Debt / EBITDA surged on 1.3x from 1.3x to 2.5x in FY2016. Debt surged on 67.0% while cash dropped on 73.4%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2015 at 1.3x.
Shreyas Shipping & Logistics has short term refinancing risk: cash is only 8.2% of short term debt.
Financial and operational results
Shreyas Shipping & Logistics ($SHREYAS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,708 | 3,889 | 4,873 | 5,459 | 5,956 | 9.1% |
| EBITDA | 243 | 418 | 459 | 744 | 776 | 4.4% |
| Net Income | 56 | 154 | -46 | 614 | 492 | -19.9% |
Balance Sheet
|
|---|
| Cash | 108 | 90 | 176 | 263 | 70 | -73.4% |
| Short Term Debt | 291 | 448 | 528 | 428 | 854 | 99.7% |
| Long Term Debt | 553 | 880 | 683 | 797 | 1,191 | 49.5% |
Cash flow
|
|---|
| Capex | 204 | 698 | 63 | 617 | 1,095 | 77.4% |
Ratios
|
|---|
| Revenue growth | 42.2% | 43.6% | 25.3% | 12.0% | 9.1% | |
| EBITDA growth | -21.4% | 71.9% | 10.0% | 61.9% | 4.4% | |
|
|---|
| EBITDA Margin | 9.0% | 10.7% | 9.4% | 13.6% | 13.0% | -0.6% |
| Net Income Margin | 2.1% | 4.0% | -0.9% | 11.2% | 8.3% | -3.0% |
| CAPEX, % of revenue | 7.5% | 17.9% | 1.3% | 11.3% | 18.4% | 7.1% |
|
|---|
| ROIC | 4.8% | 9.4% | 9.8% | 20.7% | 14.7% | -6.0% |
| ROE | 3.2% | 10.4% | -3.9% | 35.7% | 22.2% | -13.6% |
| Net Debt/EBITDA | 3.0x | 3.0x | 2.3x | 1.3x | 2.5x | 1.3x |
Peers in Shipping
Below you can find Shreyas Shipping & Logistics benchmarking vs. other companies in Shipping 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 |
|---|
| Great Eastern Shipping Co ($GESHIP) | - | 1.6% | 2.3% | 11.8% | 10.8% |
| Shipping Corporation Of India ($SCI) | - | 8.7% | 0.0% | -0.0% | -1.8% |
| Essar Shipping ($ESSARSHPNG) | - | 14.5% | -42.1% | 2.8% | -10.3% |
| |
|---|
| Median (3 companies) | 14.0% | 5.8% | 1.1% | 5.6% | -1.8% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | - | 43.6% | 25.3% | 12.0% | 9.1% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Shipping Co ($GESHIP) | 37.1% | 39.0% | 47.1% | 44.7% | 52.0% |
| Shipping Corporation Of India ($SCI) | 7.8% | 6.1% | 14.2% | 23.5% | 28.3% |
| Essar Shipping ($ESSARSHPNG) | 25.3% | 25.8% | 29.6% | 14.3% | 14.0% |
| |
|---|
| Median (3 companies) | 31.2% | 32.4% | 38.4% | 34.1% | 28.3% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 9.0% | 10.7% | 9.4% | 13.6% | 13.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Shipping Co ($GESHIP) | 51.0% | 48.2% | 20.4% | 45.5% | 17.9% |
| Shipping Corporation Of India ($SCI) | 57.3% | 70.2% | 27.3% | 17.2% | 9.4% |
| Essar Shipping ($ESSARSHPNG) | 8.2% | 8.2% | 1.3% | 4.9% | 0.5% |
| |
|---|
| Median (3 companies) | 45.3% | 59.2% | 23.9% | 11.1% | 9.4% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 7.5% | 17.9% | 1.3% | 11.3% | 18.4% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Eastern Shipping Co ($GESHIP) | 4.4% | 4.5% | 6.0% | 7.1% | 9.9% |
| Shipping Corporation Of India ($SCI) | -2.5% | -3.6% | -1.8% | 1.5% | 4.3% |
| Essar Shipping ($ESSARSHPNG) | - | 4.1% | 0.6% | -1.3% | -2.1% |
| |
|---|
| Median (3 companies) | 4.4% | 4.3% | 3.3% | 4.1% | 4.3% |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 4.8% | 9.4% | 9.8% | 20.7% | 14.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Essar Shipping ($ESSARSHPNG) | 7.2x | 5.8x | 10.1x | 13.3x | 15.5x |
| Shipping Corporation Of India ($SCI) | 16.3x | 27.2x | 12.3x | 5.7x | 4.0x |
| Great Eastern Shipping Co ($GESHIP) | 5.9x | 5.8x | 3.7x | 2.2x | 1.3x |
| |
|---|
| Median (3 companies) | 7.0x | 5.8x | 8.3x | 5.6x | 4.0x |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 3.0x | 3.0x | 2.3x | 1.3x | 2.5x |
