Til reports 23.5% EBITDA decline in 2016 and 3.6 pp EBITDA Margin decline from 10.1% to 6.5%
27-05-2016 • About Til (
$TIL) • By InTwits
Til reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Til has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: ₹498m in FY2016, ₹496m in FY2015, ₹351m in FY2014, ₹660m in FY2013, ₹1,613m in FY2012
- The company has business model with low profitability: ROIC is 7.0%
- It operates with high leverage: Net Debt/EBITDA is 6.4x while industry average is 2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 18.0%. During the last 5 years Revenue growth bottomed in FY2013 at -15.1% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.5 pp from 1.9% to 0.39% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2015 at 10.1%.
Net Income margin decreased on 2.8 pp from 0.32% to -2.5% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.9% in FY2016. The company's CAPEX/Revenue decreased on 2.8 pp from 5.6% in FY2013 to 2.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low but positive ROIC (7.0%) and negative ROE (-14.1%). ROIC decreased on 3.6 pp from 10.7% to 7.0% in FY2016. ROE dropped on 15.5 pp from 1.4% to -14.1% in FY2016.
Leverage (Debt)
Debt level is 6.4x Net Debt / EBITDA and 6.7x Debt / EBITDA. Net Debt / EBITDA jumped on 1.9x from 4.5x to 6.4x in FY2016. Debt increased on 7.9% while cash dropped on 15.5%.
Til has short term refinancing risk: cash is only 5.1% of short term debt.
Financial and operational results
Til ($TIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,816 | 11,737 | 13,126 | 14,716 | 17,363 | 18.0% |
| EBITDA | 747 | 817 | 1,071 | 1,486 | 1,136 | -23.5% |
| Net Income | 153 | 43 | 99 | 47 | -436 | -1,023.5% |
Balance Sheet
|
|---|
| Cash | 648 | 475 | 444 | 382 | 323 | -15.5% |
| Short Term Debt | 3,103 | 3,978 | 3,946 | 5,480 | 6,298 | 14.9% |
| Long Term Debt | 986 | 1,258 | 1,992 | 1,608 | 1,351 | -16.0% |
Cash flow
|
|---|
| Capex | 1,613 | 660 | 351 | 496 | 498 | 0.2% |
Ratios
|
|---|
| Revenue growth | 0.4% | -15.1% | 11.8% | 12.1% | 18.0% | |
| EBITDA growth | -39.6% | 9.4% | 31.1% | 38.7% | -23.5% | |
|
|---|
| EBITDA Margin | 5.4% | 7.0% | 8.2% | 10.1% | 6.5% | -3.6% |
| Net Income Margin | 1.1% | 0.4% | 0.8% | 0.3% | -2.5% | -2.8% |
| CAPEX, % of revenue | 11.7% | 5.6% | 2.7% | 3.4% | 2.9% | -0.5% |
|
|---|
| ROIC | 6.8% | 5.7% | 7.7% | 10.7% | 7.0% | -3.6% |
| ROE | 4.5% | 1.2% | 2.8% | 1.4% | -14.1% | -15.5% |
| Net Debt/EBITDA | 4.6x | 5.8x | 5.1x | 4.5x | 6.4x | 1.9x |
Peers in Transport Related Services
Below you can find Til benchmarking vs. other companies in Transport Related Services 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 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | - | -26.3% | -27.2% | 26.6% | 73.1% |
| Action Construction Equipment ($ACE) | - | -22.1% | -7.8% | -1.8% | 6.4% |
| Container Corporation Of India ($CONCOR) | - | 8.4% | 19.6% | 13.0% | 2.9% |
| |
|---|
| Median (3 companies) | - | -22.1% | -7.8% | 13.0% | 6.4% |
|---|
| Til ($TIL) | - | -15.1% | 11.8% | 12.1% | 18.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 70.1% | 69.8% | 57.9% | 58.3% | 66.9% |
| Container Corporation Of India ($CONCOR) | 24.9% | 23.6% | 22.5% | 23.4% | 19.2% |
| Action Construction Equipment ($ACE) | 6.5% | 5.6% | 4.1% | 3.3% | 5.0% |
| |
|---|
| Median (3 companies) | 24.9% | 23.6% | 22.5% | 13.4% | 19.2% |
|---|
| Til ($TIL) | 5.4% | 7.0% | 8.2% | 10.1% | 6.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 51.3% | 2.8% | 3.9% | 16.6% | 92.6% |
| Container Corporation Of India ($CONCOR) | 5.6% | 13.3% | 9.3% | 14.1% | 8.1% |
| Action Construction Equipment ($ACE) | 8.8% | 6.5% | 4.6% | 6.0% | 6.1% |
| |
|---|
| Median (3 companies) | 8.8% | 6.5% | 4.6% | 14.1% | 8.1% |
|---|
| Til ($TIL) | 11.7% | 5.6% | 2.7% | 3.4% | 2.9% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanghvi Movers ($SANGHVIMOV) | 15.3% | 8.1% | 1.7% | 5.0% | 18.8% |
| Container Corporation Of India ($CONCOR) | 15.5% | 14.1% | 14.2% | 13.3% | 9.6% |
| Action Construction Equipment ($ACE) | 10.9% | 5.2% | 2.2% | 2.4% | 4.6% |
| |
|---|
| Median (3 companies) | 13.1% | 8.1% | 2.2% | 5.0% | 9.6% |
|---|
| Til ($TIL) | 6.8% | 5.7% | 7.7% | 10.7% | 7.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Construction Equipment ($ACE) | 2.6x | 4.2x | 5.6x | 6.3x | 3.6x |
| Sanghvi Movers ($SANGHVIMOV) | 2.2x | 2.5x | 3.3x | 1.7x | 1.3x |
| Container Corporation Of India ($CONCOR) | -0.8x | -1.0x | -2.2x | -2.0x | -0.8x |
| |
|---|
| Median (3 companies) | 2.1x | 1.2x | 3.3x | 1.7x | 1.3x |
|---|
| Til ($TIL) | 4.6x | 5.8x | 5.1x | 4.5x | 6.4x |
