India Nippon Electricals revenue increased on 3.6% and EBITDA Margin showed almost no change
28-05-2016 • About India Nippon Electricals (
$INDNIPPON) • By InTwits
India Nippon Electricals reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- India Nippon Electricals has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: ₹74m in FY2016, ₹105m in FY2015, ₹60m in FY2014, ₹84m in FY2013, ₹142m in FY2012
- The company has highly profitable business model: ROIC is 12.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 21.4 pp from 10.1% to 31.5% in FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin followed a declining trend at -1.2 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.2%. The company's CAPEX/Revenue decreased slightly on 0.96 pp from 3.1% in FY2013 to 2.2% in FY2016. Average CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at good ROIC (12.4%) while ROE is low (10.3%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 9.1% and was growing since that time. ROE declined at -1.7 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash surged on 364%.
Financial and operational results
India Nippon Electricals ($INDNIPPON) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,607 | 2,690 | 2,627 | 3,277 | 3,397 | 3.6% |
| EBITDA | 365 | 339 | 247 | 338 | 346 | 2.3% |
| Net Income | 295 | 292 | 212 | 231 | 237 | 2.6% |
Balance Sheet
|
|---|
| Cash | 12 | 21 | 15 | 25 | 118 | 363.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 142 | 84 | 60 | 105 | 74 | -29.5% |
Ratios
|
|---|
| Revenue growth | 13.6% | 3.2% | -2.4% | 24.8% | 3.6% | |
| EBITDA growth | 14.4% | -7.0% | -27.1% | 36.9% | 2.3% | |
|
|---|
| EBITDA Margin | 14.0% | 12.6% | 9.4% | 10.3% | 10.2% | -0.1% |
| Net Income Margin | 11.3% | 10.9% | 8.1% | 7.0% | 7.0% | -0.1% |
| CAPEX, % of revenue | 5.5% | 3.1% | 2.3% | 3.2% | 2.2% | -1.0% |
|
|---|
| ROIC | 17.7% | 14.3% | 9.1% | 12.0% | 12.4% | 0.4% |
| ROE | 16.7% | 15.0% | 10.2% | 10.6% | 10.3% | -0.2% |
| Net Debt/EBITDA | -0.0x | -0.1x | -0.1x | -0.1x | -0.3x | -0.3x |
Peers in Auto Parts & Equipment
Below we provide India Nippon Electricals benchmarking against other companies in Auto Parts & Equipment 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 |
|---|
| Ip Rings ($IPRINGLTD) | - | 2.4% | -0.1% | 19.5% | 16.7% |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Spectra Industries ($SPECTRA) | - | 40.2% | -10.1% | 57.1% | 11.1% |
| Motherson Sumi Systems ($MOTHERSUMI) | - | 71.3% | 20.2% | 14.0% | 10.7% |
| Harita Seating Systems ($HARITASEAT) | - | -6.8% | -2.9% | 13.0% | 10.1% |
| |
|---|
| Median (31 companies) | 23.7% | 2.4% | 5.0% | 8.7% | 2.5% |
|---|
| India Nippon Electricals ($INDNIPPON) | - | 3.2% | -2.4% | 24.8% | 3.6% |
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 ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (45 companies) | 10.8% | 9.8% | 10.8% | 9.9% | 10.8% |
|---|
| India Nippon Electricals ($INDNIPPON) | 14.0% | 12.6% | 9.4% | 10.3% | 10.2% |
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% | 27.9% |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| |
|---|
| Median (25 companies) | 5.8% | 4.6% | 4.9% | 4.7% | 4.9% |
|---|
| India Nippon Electricals ($INDNIPPON) | 5.5% | 3.1% | 2.3% | 3.2% | 2.2% |
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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (51 companies) | 15.7% | 11.9% | 15.6% | 14.8% | 14.5% |
|---|
| India Nippon Electricals ($INDNIPPON) | 17.7% | 14.3% | 9.1% | 12.0% | 12.4% |
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 ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | 0.0x |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Autopal Industries ($AUTOPAL) | - | 3.4x | 3.8x | 4.4x | 0.0x |
| |
|---|
| Median (43 companies) | 1.3x | 2.3x | 0.9x | 0.1x | 0.0x |
|---|
| India Nippon Electricals ($INDNIPPON) | -0.0x | -0.1x | -0.1x | -0.1x | -0.3x |
