Lokesh Machines reports 21.0 pp EBITDA Margin growth from to 21.0% in 2016 in 2016

28-05-2016 • About Lokesh Machines ($LOKESHMACH) • By InTwits

Lokesh Machines reported FY2016 financial results today. Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Lokesh Machines's Revenue increased on 2.5%.

Net Income margin increased slightly on 1.1 pp from 0.63% to 1.8% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at 0.41% and was growing since that time.

Financial and operational results

Lokesh Machines ($LOKESHMACH) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	1,630	1,393	1,118	1,181	1,211	2.5%
EBITDA	308	305	268		254
Net Income	76	11	5	7	21	186.6%
Balance Sheet
Cash	6	28	5
Short Term Debt	664	542	835
Long Term Debt	485	494	415
Cash flow
Capex	360		144
Ratios
Revenue growth	11.3%	-14.5%	-19.8%	5.7%	2.5%
EBITDA growth	43.0%	-1.1%	-11.9%

EBITDA Margin	18.9%	21.9%	24.0%		21.0%
Net Income Margin	4.7%	0.8%	0.4%	0.6%	1.8%	1.1%
CAPEX, % of revenue	22.1%		12.9%

ROIC	11.0%	9.7%	8.1%
ROE	8.0%	1.1%	0.5%
Net Debt/EBITDA	3.7x	3.3x	4.6x		0.0x

Peers in Industrial Machinery

Below you can find Lokesh Machines benchmarking vs. other companies in Industrial Machinery 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
Lloyd Electric & Engineering ($LLOYDELENG)	-	-	-	22.3%	27.3%
Kabra Extrusiontechnik ($KABRAEXTRU)	-	-8.7%	28.4%	21.6%	10.2%
Akar Tools ($AKARTOOL)	21.1%	2.1%	-2.3%	16.7%	-
Honda Siel Power Products ($HONDAPOWER)	-	2.4%	5.0%	16.5%	4.7%
Mazda ($MAZDALTD)	22.1%	14.7%	-15.6%	16.2%	-
Median (28 companies)	15.9%	2.3%	1.6%	3.1%	6.9%
Lokesh Machines ($LOKESHMACH)	-	-14.5%	-19.8%	5.7%	2.5%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Bell Agromachina ($BELAGRO)	0.0%	0.0%	0.0%	0.0%	0.0%
Median (1 company)	0.0%	0.0%	0.0%	0.0%	0.0%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Texmaco Infrastructure & Holdings ($TEXINFRA)	-	-	-	40.5%	-
Dhp India ($DHPIND)	-	-	-	26.3%	-
Shilp Gravures ($SHILGRAVQ)	-	-	-	19.4%	-
Solitaire Machine Tools ($SOLIMAC)	-	-	-	19.4%	-
Wendt (India) ($WENDT)	28.3%	21.6%	18.6%	19.0%	16.5%
Median (45 companies)	11.2%	9.4%	10.5%	10.4%	9.8%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Texmaco Infrastructure & Holdings ($TEXINFRA)	-	-	-	14.0%	-
Wendt (India) ($WENDT)	13.5%	9.0%	8.8%	9.4%	9.3%
Ingersoll-Rand (India) ($INGERRAND)	4.3%	10.9%	3.6%	9.2%	6.7%
Kabra Extrusiontechnik ($KABRAEXTRU)	6.5%	1.8%	0.5%	8.8%	16.2%
Forbes & Company ($FORBESCO)	1.8%	2.6%	3.0%	5.1%	-
Median (23 companies)	5.5%	4.4%	2.8%	3.1%	3.2%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Greaves Cotton ($GREAVESCOT)	-	24.8%	16.3%	26.7%	25.7%
Gmm Pfaudler ($GMM)	-76.2%	6.8%	17.4%	18.2%	16.1%
Lakshmi Machine Works ($LAXMIMACH)	18.0%	11.7%	16.2%	17.6%	18.2%
Wpil ($WPIL)	-	25.3%	21.4%	15.7%	4.8%
Honda Siel Power Products ($HONDAPOWER)	16.9%	8.8%	11.5%	15.3%	18.3%
Median (53 companies)	13.5%	11.0%	10.8%	13.0%	12.6%
Lokesh Machines ($LOKESHMACH)	11.0%	9.7%	8.1%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Forbes & Company ($FORBESCO)	2.2x	3.3x	4.7x	6.3x	-
Nitin Fire Protection Industries ($NITINFIRE)	3.6x	3.5x	3.0x	3.7x	-
Elgi Equipments ($ELGIEQUIP)	-1.2x	2.3x	2.7x	3.3x	1.6x
Lloyd Electric & Engineering ($LLOYDELENG)	-	-	3.7x	3.2x	2.7x
Elecon Engineering Co ($ELECON)	3.0x	3.2x	4.0x	3.1x	3.9x
Median (36 companies)	0.7x	1.4x	0.0x	0.0x	0.0x

Lokesh Machines stock price chart

Lokesh Machines financials

mln.	FY2010	FY2011	FY2012

Revenue	1,382	1,464	1,630
EBITDA	199.8	215.4	308.0
Net income	40.463	70.852	75.983
CAPEX	71.716	271.1	360.2
Debt	767.7	872.5	1,150
Cash	1.142	1.581	5.703

About Lokesh Machines

Lokesh Machines Limited manufactures and sells machine tools in India and internationally. The company operates in two segments, Machines and Components. It provides special purpose machines for automobile industry, including simplex and duplex milling, multi drilling, gun drilling, fine boring, and special applications machines, as well as mini transfer lines and semi automated equipment; and general purpose machines comprising vertical and horizontal machining centers, and CNC lathes for auto OEMs, auto ancillaries, and general industries. The company also offers auto components, such as machined engine cylinder blocks and cylinder heads; and high precision engineering components for applications in aerospace and allied sectors. Lokesh Machines Limited was incorporated in 1983 and is based in Hyderabad, India.