Subros CAPEX dropped on 26.4% while Revenue increased on 9.0%
26-05-2016 • About Subros (
$SUBROS) • By InTwits
Subros reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Subros has medium CAPEX intensity: 5 year average CAPEX/Revenue was 10.0%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: ₹696m in FY2016, ₹945m in FY2015, ₹1,095m in FY2014, ₹1,368m in FY2013, ₹1,865m in FY2012
- The company has business model with low profitability: ROIC is 9.4%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 9.8% to 12.4% in FY2016. EBITDA Margin grew at 0.80 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
Subros's CAPEX/Revenue was 5.3% in FY2016. Subros's CAPEX/Revenue decreased on 5.4 pp from 10.7% in FY2013 to 5.3% in FY2016. It's average level of CAPEX/Revenue for the last three years was 7.5%. CAPEX as a % of Revenue stuck to a declining trend at -2.6 pp per annum in FY2012-FY2016.
Return on investment
The company operates at low ROIC (9.4%) and ROE (7.3%). ROIC increased slightly on 1.6 pp from 7.7% to 9.4% in FY2016. ROE increased slightly on 0.87 pp from 6.5% to 7.3% in FY2016. During FY2012-FY2016 ROE bottomed in FY2015 at 6.5%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 1.1x from 3.1x to 1.9x in FY2016. Debt dropped on 29.2% while cash dropped on 12.8%.
Subros has short term refinancing risk: cash is only 1.6% of short term debt.
Financial and operational results
Subros ($SUBROS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,205 | 12,766 | 11,762 | 12,020 | 13,107 | 9.0% |
| EBITDA | 965 | 1,222 | 1,330 | 1,369 | 1,532 | 11.9% |
| Net Income | 477 | 203 | 208 | 200 | 239 | 19.6% |
Balance Sheet
|
|---|
| Cash | 21 | 21 | 27 | 20 | 17 | -12.8% |
| Short Term Debt | 1,683 | 1,601 | 1,721 | 2,056 | 1,083 | -47.3% |
| Long Term Debt | 1,361 | 1,896 | 2,414 | 2,143 | 1,890 | -11.8% |
Cash flow
|
|---|
| Capex | 1,865 | 1,368 | 1,095 | 945 | 696 | -26.4% |
Ratios
|
|---|
| Revenue growth | 2.6% | 13.9% | -7.9% | 2.2% | 9.0% | |
| EBITDA growth | 27.0% | 26.6% | 8.9% | 2.9% | 11.9% | |
|
|---|
| EBITDA Margin | 8.6% | 9.6% | 11.3% | 11.4% | 11.7% | 0.3% |
| Net Income Margin | 4.3% | 1.6% | 1.8% | 1.7% | 1.8% | 0.2% |
| CAPEX, % of revenue | 16.6% | 10.7% | 9.3% | 7.9% | 5.3% | -2.6% |
|
|---|
| ROIC | 8.5% | 7.8% | 7.9% | 7.7% | 9.4% | 1.6% |
| ROE | 19.1% | 7.3% | 7.1% | 6.5% | 7.3% | 0.9% |
| Net Debt/EBITDA | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x | -1.1x |
Peers in Auto Parts & Equipment
Below you can find Subros benchmarking vs. other companies in Auto Parts & Equipment 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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spectra Industries ($SPECTRA) | 16.4% | 40.2% | -10.1% | 57.1% | - |
| Simmonds Marshall ($SIMMOND) | - | 4.6% | 13.4% | 28.5% | 0.1% |
| India Nippon Electricals ($INDNIPPON) | 13.6% | 3.2% | -2.4% | 24.8% | - |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Enkei Wheels (India) ($ENKEIWHEL) | 16.9% | 1.3% | 11.7% | 21.6% | - |
| |
|---|
| Median (38 companies) | 16.9% | 2.4% | 5.0% | 9.3% | 1.3% |
|---|
| Subros ($SUBROS) | - | 13.9% | -7.9% | 2.2% | 9.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | - |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (44 companies) | 11.1% | 9.9% | 10.1% | 10.1% | 10.9% |
|---|
| Subros ($SUBROS) | 8.6% | 9.6% | 11.3% | 11.4% | 11.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amtek Auto ($AMTEKAUTO) | 18.9% | - | 27.1% | 30.3% | - |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | - |
| Rico Auto Industries ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | - |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| |
|---|
| Median (25 companies) | 5.7% | 4.5% | 4.6% | 4.5% | 4.5% |
|---|
| Subros ($SUBROS) | 16.6% | 10.7% | 9.3% | 7.9% | 5.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Exide Industries ($EXIDEIND) | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% |
| Munjal Showa ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (50 companies) | 16.4% | 12.7% | 15.1% | 14.6% | 15.6% |
|---|
| Subros ($SUBROS) | 8.5% | 7.8% | 7.9% | 7.7% | 9.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x |
| Amtek Auto ($AMTEKAUTO) | 4.8x | - | 5.3x | 5.8x | - |
| Remsons Industries ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | - |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Ucal Fuel Systems ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (42 companies) | 1.2x | 1.8x | 0.7x | 0.0x | 0.0x |
|---|
| Subros ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x |
