Swelect Energy Systems Net Income jumped on 3,624% and EBITDA Margin increased on 4.6 pp from 3.5% to 8.0%
28-05-2016 • About Swelect Energy Systems (
$SWELECTES) • By InTwits
Swelect Energy Systems reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Swelect Energy Systems is a company in decline: FY2016 revenue growth was -7.0%, 5 years revenue CAGR was -16.6%
- EBITDA Margin is quite volatile: 8.0% in FY2016, 3.5% in FY2015, 4.9% in FY2014, 3.6% in FY2013, 9.4% in FY2012
- Swelect Energy Systems has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.8%. At the same time it's a lot of higher than industry average of 5.4%.
- CAPEX is quite volatile: ₹909m in FY2016, ₹483m in FY2015, ₹897m in FY2014, ₹750m in FY2013, ₹307m in FY2012
- The company has unprofitable business model: ROIC is -0.1%
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 decreased on 7.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.6 pp from 3.5% to 8.0% in FY2016.
Net Income margin increased on 6.6 pp from -0.17% to 6.4% in FY2016.
Investments (CAPEX, working capital and M&A)
Swelect Energy Systems's CAPEX/Revenue was 44.0% in FY2016. Swelect Energy Systems showed small growth in CAPEX/Revenue of 1.6 pp from 42.5% in FY2013 to 44.0% in FY2016. Average CAPEX/Revenue for the last three years was 38.9%. Swelect Energy Systems has spent a lot to CAPEX (549% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.1%) and low but positive ROE (1.9%). ROIC increased slightly on 1.0 pp from -1.1% to -0.10% in FY2016. ROE increased slightly on 2.0 pp from -0.055% to 1.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 7.9x. Net Debt / EBITDA jumped on 11.1x from -8.1x to 3.0x in FY2016. Debt decreased on 5.7% while cash dropped on 59.4%.
Swelect Energy Systems has no short term refinancing risk: cash is higher than short term debt (101.4%).
Financial and operational results
Swelect Energy Systems ($SWELECTES) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,995 | 1,765 | 1,764 | 2,218 | 2,063 | -7.0% |
| EBITDA | 563 | 64 | 87 | 77 | 166 | 115.8% |
| Net Income | 348 | 5,209 | 162 | -4 | 132 | |
Balance Sheet
|
|---|
| Cash | 159 | 385 | 578 | 2,008 | 814 | -59.4% |
| Short Term Debt | 347 | 421 | 259 | 441 | 803 | 82.2% |
| Long Term Debt | 73 | 47 | 753 | 947 | 506 | -46.6% |
Cash flow
|
|---|
| Capex | 307 | 750 | 897 | 483 | 909 | 88.1% |
Ratios
|
|---|
| Revenue growth | 17.5% | -70.6% | -0.0% | 25.7% | -7.0% | |
| EBITDA growth | -2.1% | -88.6% | 36.4% | -12.0% | 115.8% | |
|
|---|
| EBITDA Margin | 9.4% | 3.6% | 4.9% | 3.5% | 8.0% | 4.6% |
| Net Income Margin | 5.8% | 295.2% | 9.2% | -0.2% | 6.4% | 6.6% |
| CAPEX, % of revenue | 5.1% | 42.5% | 50.8% | 21.8% | 44.0% | 22.3% |
|
|---|
| ROIC | 15.2% | -0.2% | -0.2% | -1.1% | -0.1% | 1.0% |
| ROE | 12.7% | 108.8% | 2.4% | -0.1% | 1.9% | 2.0% |
| Net Debt/EBITDA | 0.5x | 1.3x | 5.0x | -8.1x | 3.0x | 11.1x |
Peers in Heavy Electrical Equipment
Below you can find Swelect Energy Systems benchmarking vs. other companies in Heavy Electrical 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 |
|---|
| T D Power Systems ($TDPOWERSYS) | - | -43.1% | -18.2% | 24.4% | -15.9% |
| Sterlite Technologies ($STRTECH) | - | 17.9% | -17.1% | 20.8% | -30.2% |
| Voltamp Transformers ($VOLTAMP) | 4.3% | -7.7% | -13.7% | 16.2% | - |
| Techno Electric And Engineering Co. ($TECHNO) | - | -15.7% | 1.7% | 12.6% | 38.9% |
| Techno Electric & Engineering Company ($TECHELE) | - | -15.7% | 1.7% | 12.6% | 38.9% |
| |
|---|
| Median (16 companies) | 4.3% | -5.3% | 1.7% | 1.1% | -3.5% |
|---|
| Swelect Energy Systems ($SWELECTES) | - | -70.6% | -0.0% | 25.7% | -7.0% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Suzlon Energy ($SUZLON) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
| |
|---|
| Median (1 company) | 33.2% | 27.2% | 28.6% | 31.3% | 40.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ujaas Energy ($UJAAS) | 1.2% | 18.7% | 17.4% | 38.1% | 22.6% |
| Techno Electric And Engineering Co. ($TECHNO) | 27.0% | 34.5% | 28.5% | 26.5% | 20.2% |
| Techno Electric & Engineering Company ($TECHELE) | 27.0% | 34.5% | 28.5% | 26.5% | 20.2% |
| Sterlite Technologies ($STRTECH) | 7.5% | 7.5% | 10.8% | 15.0% | 20.9% |
| Emco ($EMCO) | 7.4% | 9.5% | 11.3% | 9.3% | - |
| |
|---|
| Median (16 companies) | 8.9% | 8.8% | 6.7% | 7.1% | 7.7% |
|---|
| Swelect Energy Systems ($SWELECTES) | 9.4% | 3.6% | 4.9% | 3.5% | 8.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sterlite Technologies ($STRTECH) | 24.9% | 47.2% | 64.9% | 37.4% | 10.3% |
| Transformers And Rectifiers (India) ($TRIL) | 5.7% | 8.4% | 2.8% | 5.8% | 1.4% |
| T D Power Systems ($TDPOWERSYS) | 3.7% | 14.5% | 15.1% | 3.8% | 3.4% |
| Suzlon Energy ($SUZLON) | 4.2% | 3.7% | 3.4% | 3.7% | 4.3% |
| Crompton Greaves ($CROMPGREAV) | 3.3% | 1.8% | 2.2% | 3.6% | 2.6% |
| |
|---|
| Median (15 companies) | 5.0% | 3.0% | 2.4% | 2.2% | 2.1% |
|---|
| Swelect Energy Systems ($SWELECTES) | 5.1% | 42.5% | 50.8% | 21.8% | 44.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Alstom India ($AIL) | 27.2% | 25.6% | 13.2% | 10.7% | -27.7% |
| Ujaas Energy ($UJAAS) | 0.0% | 28.5% | 33.7% | 10.2% | 16.2% |
| Techno Electric & Engineering Company ($TECHELE) | 15.5% | 12.6% | 9.3% | 10.2% | 11.3% |
| Techno Electric And Engineering Co. ($TECHNO) | 15.5% | 12.6% | 9.3% | 10.2% | 11.3% |
| Emco ($EMCO) | 4.3% | 6.1% | 7.4% | 6.1% | - |
| |
|---|
| Median (19 companies) | 14.2% | 7.1% | 9.3% | 4.1% | 4.1% |
|---|
| Swelect Energy Systems ($SWELECTES) | 15.2% | -0.2% | -0.2% | -1.1% | -0.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jyoti Structures ($JYOTISTRUC) | 2.4x | 3.6x | 5.7x | 88.2x | - |
| Suzlon Energy ($SUZLON) | 6.1x | - | 87.6x | 19.1x | 9.5x |
| Bgr Energy Systems ($BGRENERGY) | 2.6x | 3.5x | 4.1x | 13.0x | - |
| Sterlite Technologies ($STRTECH) | 4.6x | 10.2x | 15.4x | 11.1x | 2.2x |
| Emco ($EMCO) | 8.1x | 7.3x | 5.7x | 7.3x | - |
| |
|---|
| Median (14 companies) | 2.3x | 3.0x | 2.5x | 2.7x | 1.9x |
|---|
| Swelect Energy Systems ($SWELECTES) | 0.5x | 1.3x | 5.0x | -8.1x | 3.0x |
