Timex Group India reports 21.3% revenue growth in FY2016 and 2.7 pp EBITDA Margin growth from -4.7% to -2.0%
26-05-2016 • About Timex Group India (
$TIMEX) • By InTwits
Timex Group India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -2.0%
- Timex Group India motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0% while average EBITDA Margin was -7.6% for the sames years
- Timex Group India has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.5%
- CAPEX is quite volatile: ₹22m in FY2016, ₹8m in FY2015, ₹14m in FY2014, ₹26m in FY2013, ₹27m in FY2012
- It operates with medium-size leverage: Net Debt/EBITDA is 3.0x while industry average is 2.8x
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 surged on 21.3%. During the last 5 years Revenue growth bottomed in FY2013 at -33.8% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.7 pp from -4.7% to -2.0% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at -29.2% and was growing since that time.
Net Income margin increased on 2.3 pp from -7.7% to -5.4% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at -34.6% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Timex Group India had CAPEX/Revenue of 1.3%. CAPEX/Revenue decreased slightly on 0.86 pp from 2.1% in FY2013 to 1.3% in FY2016. For the last three years the average CAPEX/Revenue was 0.99%.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 24.4% while cash decreased on 6.1%.
Timex Group India has short term refinancing risk: cash is only 12.2% of short term debt.
Financial and operational results
Timex Group India ($TIMEX) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,835 | 1,214 | 1,236 | 1,424 | 1,727 | 21.3% |
| EBITDA | 130 | -355 | -236 | -67 | -35 | |
| Net Income | 45 | -420 | -330 | -110 | -93 | |
Balance Sheet
|
|---|
| Cash | 33 | 56 | 52 | 45 | 42 | -6.1% |
| Short Term Debt | 87 | 103 | 171 | 277 | 344 | 24.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 27 | 26 | 14 | 8 | 22 | 158.3% |
Ratios
|
|---|
| Revenue growth | 6.0% | -33.8% | 1.8% | 15.2% | 21.3% | |
| EBITDA growth | -30.0% | -373.6% | -33.3% | -71.7% | -47.3% | |
|
|---|
| EBITDA Margin | 7.1% | -29.2% | -19.1% | -4.7% | -2.0% | 2.7% |
| Net Income Margin | 2.5% | -34.6% | -26.7% | -7.7% | -5.4% | 2.3% |
| CAPEX, % of revenue | 1.5% | 2.1% | 1.1% | 0.6% | 1.3% | 0.7% |
|
|---|
| ROIC | 13.6% | -70.8% | -836.7% | | | |
| ROE | 14.8% | | | | | |
| Net Debt/EBITDA | 0.4x | | | | |
Peers in Other Apparels & Accessories
Below you can find Timex Group India benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Bhartiya International ($BIL) | - | 20.9% | 36.7% | 34.7% | 12.1% |
| Page Industries ($PAGEIND) | - | 26.3% | 37.5% | 30.0% | 15.5% |
| Mini Diamonds (India) ($MINID) | - | 59.6% | 117.1% | 26.9% | 3.1% |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | - |
| Thangamayil Jewellery ($THANGAMAYL) | - | 34.6% | -21.8% | 19.3% | -10.5% |
| |
|---|
| Median (23 companies) | 3.4% | 19.5% | 15.3% | -0.9% | 3.1% |
|---|
| Timex Group India ($TIMEX) | - | -33.8% | 1.8% | 15.2% | 21.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ceenik Exports (India) ($CEENIK) | - | - | - | 27.2% | - |
| Arrow Textiles ($ARROWTEX) | - | - | - | 25.2% | - |
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.6% | 6.1% | 6.1% | 5.2% | 3.8% |
|---|
| Timex Group India ($TIMEX) | 7.1% | -29.2% | -19.1% | -4.7% | -2.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | 7.0% |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | 1.5% |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | 1.7% |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | - |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | 0.5% |
| |
|---|
| Median (10 companies) | 1.8% | 1.3% | 1.2% | 1.4% | 0.6% |
|---|
| Timex Group India ($TIMEX) | 1.5% | 2.1% | 1.1% | 0.6% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | - |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | - |
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 11.0% | 7.7% | 9.2% |
|---|
| Timex Group India ($TIMEX) | 13.6% | -70.8% | -836.7% | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | 2.9x |
| Shrenuj & Co ($SHRENUJ) | 9.3x | 11.2x | 11.7x | 13.5x | - |
| Gokaldas Exports ($GOKEX) | - | - | 3.6x | 10.4x | - |
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| |
|---|
| Median (25 companies) | 2.3x | 2.7x | 0.0x | 0.4x | 2.2x |
|---|
