Shivam Autotech reports 113% CAPEX growth in 2016 while 4.9% Revenue decline
28-05-2016 • About Shivam Autotech (
$SHIVAMAUTO) • By InTwits
Shivam Autotech reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: 16.6% in FY2016 vs. 18.7% in FY2015 vs. 24.1% in FY2012
- Shivam Autotech has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: ₹1,183m in FY2016, ₹555m in FY2015, ₹192m in FY2014, ₹150m in FY2013, ₹409m in FY2012
- The company has business model with low profitability: ROIC is 9.5%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Shivam Autotech's Revenue decreased on 4.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 18.7% to 16.6% in FY2016. EBITDA Margin stuck to a declining trend at -2.0 pp per annum in the last 5 years.
Net Income margin decreased slightly on 1.8 pp from 6.3% to 4.5% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 7.8% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Shivam Autotech's CAPEX/Revenue was 27.9% in FY2016. The company's CAPEX/Revenue surged on 23.8 pp from 4.1% in FY2013 to 27.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 15.1%. Battling declining revenue the company made large investments to CAPEX (168% of EBITDA) but that didn't help at least in this year. During the last 5 years CAPEX as a % of Revenue bottomed in FY2013 at 4.1% and was growing since that time.
Return on investment
The company operates at low ROIC (9.5%) and ROE (10.2%). ROIC decreased on 7.1 pp from 16.6% to 9.5% in FY2016. ROE decreased on 6.2 pp from 16.4% to 10.2% in FY2016. During the last 5 years ROIC topped in FY2013 at 19.7% and was declining since that time. During the last 5 years ROE topped in FY2013 at 22.4% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.3x and Debt / EBITDA is 4.3x. Net Debt / EBITDA jumped on 2.1x from 2.2x to 4.3x in FY2016. Debt surged on 61.8% while cash dropped on 45.1%. During the last 5 years Net Debt/EBITDA bottomed in FY2014 at 1.5x and was growing since that time.
Shivam Autotech has short term refinancing risk: cash is only 2.4% of short term debt.
Financial and operational results
Shivam Autotech ($SHIVAMAUTO) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,525 | 3,629 | 3,888 | 4,458 | 4,241 | -4.9% |
| EBITDA | 850 | 876 | 802 | 833 | 705 | -15.3% |
| Net Income | 186 | 282 | 284 | 281 | 192 | -31.6% |
Balance Sheet
|
|---|
| Cash | 3 | 4 | 2 | 59 | 32 | -45.1% |
| Short Term Debt | 1,106 | 844 | 874 | 853 | 1,346 | 57.9% |
| Long Term Debt | 618 | 437 | 297 | 1,033 | 1,705 | 65.1% |
Cash flow
|
|---|
| Capex | 409 | 150 | 192 | 555 | 1,183 | 113.2% |
Ratios
|
|---|
| Revenue growth | 33.8% | 2.9% | 7.1% | 14.7% | -4.9% | |
| EBITDA growth | 39.1% | 3.0% | -8.4% | 3.9% | -15.3% | |
|
|---|
| EBITDA Margin | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% | -2.1% |
| Net Income Margin | 5.3% | 7.8% | 7.3% | 6.3% | 4.5% | -1.8% |
| CAPEX, % of revenue | 11.6% | 4.1% | 4.9% | 12.5% | 27.9% | 15.5% |
|
|---|
| ROIC | 18.6% | 19.7% | 17.4% | 16.6% | 9.5% | -7.1% |
| ROE | 17.5% | 22.4% | 19.0% | 16.4% | 10.2% | -6.2% |
| Net Debt/EBITDA | 2.0x | 1.5x | 1.5x | 2.2x | 4.3x | 2.1x |
Peers in Auto Parts & Equipment
Below you can find Shivam Autotech benchmarking vs. other companies in Auto Parts & 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 |
|---|
| 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 ($HARITASEAT) | - | -6.8% | -2.9% | 13.0% | 10.1% |
| |
|---|
| Median (31 companies) | 23.7% | 2.4% | 4.9% | 8.7% | 2.8% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | - | 2.9% | 7.1% | 14.7% | -4.9% |
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% |
| 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% | - |
| Raunaq Automotive Components ($RAUNAQAU) | 10.2% | 10.5% | 12.0% | 15.1% | 13.1% |
| |
|---|
| Median (45 companies) | 10.8% | 9.8% | 10.1% | 9.9% | 10.3% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% |
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 ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| L.G.Balakrishnan & Bros ($LGBBROSLTD) | 3.5% | 6.5% | 6.0% | 8.9% | 7.0% |
| |
|---|
| Median (25 companies) | 5.7% | 4.6% | 4.6% | 4.5% | 4.4% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | 27.9% |
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 ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (51 companies) | 15.7% | 11.9% | 14.5% | 14.5% | 14.5% |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 18.6% | 19.7% | 17.4% | 16.6% | 9.5% |
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 ($AUTOPAL) | - | 3.4x | 3.8x | 4.4x | 0.0x |
| |
|---|
| Median (43 companies) | 1.2x | 2.3x | 0.7x | 0.0x | 0.0x |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 2.0x | 1.5x | 1.5x | 2.2x | 4.3x |
