Man Industries (India) reports 65.3% Net Income growth in 2016 and almost no change in EBITDA Margin of 8.6%
27-05-2016 • About Man Industries (India) (
$MANINDS) • By InTwits
Man Industries (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Man Industries (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 9.3%.
- CAPEX is quite volatile: ₹489m in FY2016, ₹0m in FY2015, ₹402m in FY2014, ₹865m in FY2013, ₹26m in FY2012
- The company has business model with low profitability: ROIC is 8.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Man Industries (India)'s Revenue increased on 6.4%. EBITDA Margin showed almost no change in FY2016.
Net Income margin increased on 2.1 pp from 3.9% to 6.0% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Man Industries (India) had CAPEX/Revenue of 3.5%. Man Industries (India)'s CAPEX/Revenue decreased on 2.2 pp from 5.7% in FY2013 to 3.5% in FY2016.
Return on investment
The company operates at good ROE (15.9%) while ROIC is low (8.1%). ROIC increased slightly on 1.5 pp from 6.6% to 8.1% in FY2016. ROE increased on 7.0 pp from 8.8% to 15.9% in FY2016. During the last 5 years ROE bottomed in FY2014 at 1.4% and was growing since that time.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 3.0x to 1.5x in FY2016. Debt dropped on 29.5% while cash jumped on 13.1%.
Man Industries (India) has no short term refinancing risk: cash is higher than short term debt (110.3%).
Financial and operational results
Man Industries (India) ($MANINDS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,509 | 15,136 | 10,053 | 13,071 | 13,907 | 6.4% |
| EBITDA | 1,762 | 1,926 | 551 | 1,141 | 1,198 | 5.0% |
| Net Income | 711 | 622 | 90 | 504 | 833 | 65.3% |
Balance Sheet
|
|---|
| Cash | 1,065 | 1,679 | 1,787 | 1,483 | 1,677 | 13.1% |
| Short Term Debt | 5,918 | 2,377 | 1,285 | 1,781 | 1,521 | -14.6% |
| Long Term Debt | 0 | 2,986 | 3,098 | 3,168 | 1,968 | -37.9% |
Cash flow
|
|---|
| Capex | 26 | 865 | 402 | 0 | 489 | |
Ratios
|
|---|
| Revenue growth | 16.4% | -13.5% | -33.6% | 30.0% | 6.4% | |
| EBITDA growth | -8.2% | 9.3% | -71.4% | 107.1% | 5.0% | |
|
|---|
| EBITDA Margin | 10.1% | 12.7% | 5.5% | 8.7% | 8.6% | -0.1% |
| Net Income Margin | 4.1% | 4.1% | 0.9% | 3.9% | 6.0% | 2.1% |
| CAPEX, % of revenue | 0.1% | 5.7% | 4.0% | 0.0% | 3.5% | |
|
|---|
| ROIC | 8.6% | 12.3% | 1.9% | 6.6% | 8.1% | 1.5% |
| ROE | 12.8% | 9.8% | 1.4% | 8.8% | 15.9% | 7.0% |
| Net Debt/EBITDA | 2.8x | 1.9x | 4.7x | 3.0x | 1.5x | -1.5x |
Peers in Construction & Engineering
Below we provide Man Industries (India) benchmarking against other companies in Construction & Engineering 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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | - |
| Welspun Projects ($WELPROJ) | - | -8.9% | -20.7% | 239.1% | -73.2% |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | - | 16.7% | 12.4% | 63.0% | -20.2% |
| Atlanta ($ATLANTA) | - | 115.1% | 28.1% | 50.2% | -70.5% |
| |
|---|
| Median (32 companies) | 4.2% | 6.9% | 7.1% | -0.0% | -6.6% |
|---|
| Man Industries (India) ($MANINDS) | - | -13.5% | -33.6% | 30.0% | 6.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 36.9% | 35.9% | 32.4% | 31.5% | - |
| Arss Infrastructure Projects ($ARSSINFRA) | 14.0% | 13.9% | 22.0% | 31.3% | - |
| Reliance Industrial Infrastructure ($RIIL) | - | - | - | 30.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | 29.6% |
| |
|---|
| Median (36 companies) | 12.4% | 11.2% | 10.7% | 10.3% | 10.5% |
|---|
| Man Industries (India) ($MANINDS) | 10.1% | 12.7% | 5.5% | 8.7% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | - |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | 25.2% |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | 4.5% |
| |
|---|
| Median (23 companies) | 7.7% | 8.6% | 6.9% | 3.2% | 3.3% |
|---|
| Man Industries (India) ($MANINDS) | 0.1% | 5.7% | 4.0% | 0.0% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Skipper ($SKIPPER) | 10.4% | 13.5% | 14.7% | 27.4% | 24.4% |
| Voltas ($VOLTAS) | 19.6% | 11.7% | 11.8% | 19.3% | 18.2% |
| Coromandel Engineering Company ($COROENGG) | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% |
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | - |
| Itd Cementation India ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.1% | 6.3% | 6.8% | 6.3% |
|---|
| Man Industries (India) ($MANINDS) | 8.6% | 12.3% | 1.9% | 6.6% | 8.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | - |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | - |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | - |
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | 8.8x |
| |
|---|
| Median (30 companies) | 4.7x | 5.7x | 6.6x | 2.9x | 4.4x |
|---|
| Man Industries (India) ($MANINDS) | 2.8x | 1.9x | 4.7x | 3.0x | 1.5x |
