Transformers And Rectifiers (India) reports 22.6% EBITDA growth in 2016 and 0.73 pp EBITDA Margin growth from 5.1% to 5.9%
26-05-2016 • About Transformers And Rectifiers (India) (
$TRIL) • By InTwits
Transformers And Rectifiers (India) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.9% in FY2016 vs. 5.1% in FY2015 vs. 4.7% in FY2012
- Transformers And Rectifiers (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: ₹86m in FY2016, ₹321m in FY2015, ₹203m in FY2014, ₹431m in FY2013, ₹295m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Transformers And Rectifiers (India)'s Revenue increased on 7.4%. 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 showed almost no change in FY2016. Net Income margin declined at -0.88 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.4% in FY2016. Transformers And Rectifiers (India) showed decline in CAPEX/Revenue of 7.0 pp from 8.4% in FY2013 to 1.4% in FY2016. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at low but positive ROIC (4.1%) and negative ROE (-2.3%). ROIC increased slightly on 1.1 pp from 2.9% to 4.1% in FY2016. ROE showed almost no change in FY2016. ROE stuck to a declining trend at -1.4 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 4.8x to 3.6x in FY2016. Debt decreased on 5.8% while cash increased on 4.7%.
Transformers And Rectifiers (India) has short term refinancing risk: cash is only 21.4% of short term debt.
Financial and operational results
Transformers And Rectifiers (India) ($TRIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,191 | 5,124 | 7,316 | 5,537 | 5,949 | 7.4% |
| EBITDA | 242 | 213 | 395 | 284 | 349 | 22.6% |
| Net Income | 100 | 49 | 52 | -80 | -75 | |
Balance Sheet
|
|---|
| Cash | 661 | 182 | 77 | 210 | 220 | 4.7% |
| Short Term Debt | 440 | 1,019 | 1,483 | 1,379 | 1,026 | -25.6% |
| Long Term Debt | 2 | 53 | 212 | 186 | 448 | 140.6% |
Cash flow
|
|---|
| Capex | 295 | 431 | 203 | 321 | 86 | -73.3% |
Ratios
|
|---|
| Revenue growth | -4.4% | -1.3% | 42.8% | -24.3% | 7.4% | |
| EBITDA growth | -64.9% | -11.8% | 85.6% | -28.1% | 22.6% | |
|
|---|
| EBITDA Margin | 4.7% | 4.2% | 5.4% | 5.1% | 5.9% | 0.7% |
| Net Income Margin | 1.9% | 1.0% | 0.7% | -1.5% | -1.3% | 0.2% |
| CAPEX, % of revenue | 5.7% | 8.4% | 2.8% | 5.8% | 1.4% | -4.4% |
|
|---|
| ROIC | 4.4% | 3.2% | 5.9% | 2.9% | 4.1% | 1.1% |
| ROE | 3.0% | 1.5% | 1.5% | -2.4% | -2.3% | 0.1% |
| Net Debt/EBITDA | -0.9x | 4.2x | 4.1x | 4.8x | 3.6x | -1.2x |
Peers in Heavy Electrical Equipment
Below you can find Transformers And Rectifiers (India) benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| Swelect Energy Systems ($SWELECTES) | 17.5% | -70.6% | -0.0% | 25.7% | - |
| T D Power Systems ($TDPOWERSYS) | - | -43.1% | -18.2% | 24.4% | -15.9% |
| Sterlite Technologies ($STRTECH) | - | 17.9% | -17.1% | 20.8% | -30.2% |
| Voltamp Transformers ($VOLTAMP) | 4.3% | -7.7% | -13.7% | 16.2% | - |
| Techno Electric And Engineering Co. ($TECHNO) | 13.6% | -15.7% | 1.7% | 12.6% | - |
| |
|---|
| Median (16 companies) | 13.6% | -8.7% | 0.8% | 4.5% | -15.9% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | - | -1.3% | 42.8% | -24.3% | 7.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Suzlon Energy ($SUZLON) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
| |
|---|
| Median (1 company) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ujaas Energy ($UJAAS) | 1.2% | 18.7% | 17.4% | 38.1% | 22.6% |
| Techno Electric And Engineering Co. ($TECHNO) | 27.0% | 34.5% | 28.5% | 26.5% | - |
| Techno Electric & Engineering Company ($TECHELE) | 27.0% | 34.5% | 28.5% | 26.5% | - |
| Sterlite Technologies ($STRTECH) | 7.5% | 7.5% | 10.8% | 15.0% | 20.9% |
| Emco ($EMCO) | 7.4% | 9.5% | 11.3% | 9.3% | - |
| |
|---|
| Median (16 companies) | 9.2% | 8.8% | 6.7% | 7.1% | 7.7% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 4.7% | 4.2% | 5.4% | 5.1% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sterlite Technologies ($STRTECH) | 24.9% | 47.2% | 64.9% | 37.4% | 10.3% |
| Swelect Energy Systems ($SWELECTES) | 5.1% | 42.5% | 50.8% | 21.8% | - |
| T D Power Systems ($TDPOWERSYS) | 3.7% | 14.5% | 15.1% | 3.8% | 3.4% |
| Suzlon Energy ($SUZLON) | 4.2% | 3.7% | 3.4% | 3.7% | 4.3% |
| Crompton Greaves ($CROMPGREAV) | 3.3% | 1.8% | 2.2% | 3.6% | 2.6% |
| |
|---|
| Median (15 companies) | 4.7% | 3.0% | 2.4% | 2.2% | 3.0% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 5.7% | 8.4% | 2.8% | 5.8% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Alstom India ($AIL) | 27.2% | 25.6% | 13.2% | 10.7% | -27.7% |
| Ujaas Energy ($UJAAS) | 0.0% | 28.5% | 33.7% | 10.2% | 16.2% |
| Techno Electric & Engineering Company ($TECHELE) | 15.5% | 12.6% | 9.3% | 10.2% | - |
| Techno Electric And Engineering Co. ($TECHNO) | 15.5% | 12.6% | 9.3% | 10.2% | - |
| Emco ($EMCO) | 4.3% | 6.1% | 7.4% | 6.1% | - |
| |
|---|
| Median (18 companies) | 15.3% | 6.5% | 9.3% | 4.1% | 3.9% |
|---|
| Transformers And Rectifiers (India) ($TRIL) | 4.4% | 3.2% | 5.9% | 2.9% | 4.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyoti Structures ($JYOTISTRUC) | 2.4x | 3.6x | 5.7x | 88.2x | - |
| Suzlon Energy ($SUZLON) | 6.1x | - | 87.6x | 19.1x | 9.5x |
| Bgr Energy Systems ($BGRENERGY) | 2.6x | 3.5x | 4.1x | 13.0x | - |
| Sterlite Technologies ($STRTECH) | 4.6x | 10.2x | 15.4x | 11.1x | 2.2x |
| Emco ($EMCO) | 8.1x | 7.3x | 5.7x | 7.3x | - |
| |
|---|
| Median (14 companies) | 2.4x | 2.6x | 2.5x | 2.6x | 1.7x |
|---|
| Transformers And Rectifiers (India) ($TRIL) | -0.9x | 4.2x | 4.1x | 4.8x | 3.6x |
