Easun Reyrolle EBITDA dropped on 142% and Revenue dropped on 70.3%

30-05-2016 • About Easun Reyrolle ($EASUNREYRL) • By InTwits

Easun Reyrolle reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:

Easun Reyrolle is a company in decline: FY2016 revenue growth was -70.3%, 5 years revenue CAGR was -34.9%
EBITDA Margin is quite volatile: -6.4% in FY2016, 4.5% in FY2015, 8.4% in FY2014, 6.6% in FY2013, 2.9% in FY2012

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Easun Reyrolle's Revenue dropped on 70.3%. Revenue decline was accelerating on average at -20.0 pp per annum in the last 5 years. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.9 pp from 4.5% to -6.4% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2014 at 8.4% and was declining since that time.

Net Income margin dropped on 93.8 pp from -34.3% to -128% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at -1.2% and was declining since that time.

Financial and operational results

Easun Reyrolle ($EASUNREYRL) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	3,221	2,882	2,565	1,179	350	-70.3%
EBITDA	94	190	216	53	-22	-142.1%
Net Income	-70	-36	-311	-405	-449
Balance Sheet
Cash	39	68	65
Short Term Debt	1,002	1,278	1,541
Long Term Debt	853	926	1,034
Cash flow
Capex	853	884	497
Ratios
Revenue growth	7.8%	-10.5%	-11.0%	-54.0%	-70.3%
EBITDA growth	-32.8%	102.3%	14.0%	-75.4%	-142.1%

EBITDA Margin	2.9%	6.6%	8.4%	4.5%	-6.4%	-10.9%
Net Income Margin	-2.2%	-1.2%	-12.1%	-34.3%	-128.1%	-93.8%
CAPEX, % of revenue	26.5%	30.7%	19.4%

ROIC	-1.4%	-1.0%	-1.1%
ROE	-3.4%	-1.8%	-17.2%
Net Debt/EBITDA	19.4x	11.3x	11.6x	0.0x

Peers in Other Elect.Equip./ Prod.

Below we provide Easun Reyrolle benchmarking against other companies in Other Elect.Equip./ Prod. 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
Salzer Electronics ($SALZER)	-	2.6%	6.9%	15.9%	27.5%
Ultracab (India) ($ULTRACAB)	-	26.2%	10.5%	10.6%	17.7%
Kirloskar Electric Company ($KECL)	-	-1.7%	-7.6%	-48.5%	7.3%
Cords Cable Industries ($CORDSCABLE)	-	2.3%	-31.8%	0.8%	6.9%
Emgee Cables & Communications ($EMGEECA)	-	-1.4%	1.1%	-0.8%	-2.2%
Median (12 companies)	32.7%	-1.7%	0.4%	7.3%	-4.0%
Easun Reyrolle ($EASUNREYRL)	-	-10.5%	-11.0%	-54.0%	-70.3%

Top companies by Gross margin, %


Top	FY2012	FY2013	FY2014	FY2015	FY2016
Malvica Engineering ($MALVICAE)	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
Fluidomat ($FLUIDOM)	-	-	-	28.0%	-
Indosolar ($INDOSOLAR)	-114.4%	-52.7%	-140.0%	16.3%	3.3%
Genus Power Infrastructures ($GENUSPOWER)	14.1%	11.0%	13.8%	13.8%	14.8%
Salzer Electronics ($SALZER)	12.9%	12.5%	12.4%	12.6%	12.1%
Pitti Laminations ($PITTILAM)	15.6%	13.6%	13.2%	12.0%	6.2%
Median (16 companies)	9.9%	9.0%	9.3%	10.3%	10.2%
Easun Reyrolle ($EASUNREYRL)	2.9%	6.6%	8.4%	4.5%	-6.4%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Indosolar ($INDOSOLAR)	311.2%	148.3%	42.3%	26.9%	7.1%
Diamond Power Infrastructure ($DIAPOWER)	-	6.8%	8.4%	8.7%	-
Salzer Electronics ($SALZER)	6.8%	5.6%	4.1%	8.2%	9.8%
Birla Ericsson Optical ($BIRLAERIC)	1.3%	4.4%	4.0%	3.5%	-
Kirloskar Electric Company ($KECL)	1.8%	0.7%	1.8%	2.3%	0.3%
Median (7 companies)	2.8%	4.0%	3.6%	3.5%	3.7%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Salzer Electronics ($SALZER)	14.6%	12.7%	13.0%	14.6%	13.8%
Genus Power Infrastructures ($GENUSPOWER)	12.4%	8.0%	12.2%	13.5%	12.7%
Hbl Power Systems ($HBLPOWER)	10.6%	10.1%	4.3%	6.7%	6.5%
Malvica Engineering ($MALVICAE)	0.0%	0.0%	0.0%	0.0%	0.0%
Indosolar ($INDOSOLAR)	-14.0%	-6.8%	-5.2%	2.2%	-3.0%
Median (19 companies)	9.0%	9.2%	10.5%	4.5%	3.3%
Easun Reyrolle ($EASUNREYRL)	-1.4%	-1.0%	-1.1%	-	-

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Diamond Power Infrastructure ($DIAPOWER)	3.3x	5.2x	4.8x	46.8x	-
Indosolar ($INDOSOLAR)	-	-	-	20.3x	66.3x
Hbl Power Systems ($HBLPOWER)	4.1x	4.4x	6.8x	4.7x	4.2x
Salzer Electronics ($SALZER)	1.9x	2.2x	2.6x	2.7x	2.2x
Genus Power Infrastructures ($GENUSPOWER)	3.2x	3.9x	2.9x	2.7x	1.5x
Median (13 companies)	3.3x	4.1x	2.6x	0.0x	0.0x
Easun Reyrolle ($EASUNREYRL)	19.4x	11.3x	11.6x	0.0x	-

Easun Reyrolle stock price chart

Easun Reyrolle financials

mln.	FY2010	FY2011	FY2012

Revenue	1,381	2,987	3,221
EBITDA	79.625	139.4	93.724
Net income	449.7	-72.150	-70.091
CAPEX	155.4	577.9	853.1
Debt	793.3	1,785	1,855
Cash	407.0	234.2	39.063

About Easun Reyrolle

Easun Reyrolle Limited, together with its subsidiaries, provides a range of power transmission and distribution products, systems, solutions, and services in India and internationally. The company offers protection, control, and automation products, including protective relays, control and protection systems, automation products, power system recorders, phaser measurement units, wide area monitoring solutions, substation automation systems for EHV/HV/MV substations, network management products, and power distribution automation products for industries. It also provides measurement and metering solutions, such as GPRS modems, data concentrator units, device management and data acquisition systems, and meter data management systems; and medium voltage switchgears comprising air and solid insulated vacuum switchgear, ring main units, and cycloalipathic CTs and PTs, as well as offers MV vacuum contacting and MV switchgear retrofitting services. In addition, the company undertakes turnkey substation projects consisting of green field substation, substations augmentation and modernization, transmission line, and rural electrification projects. It serves utilities, public sector companies, power generation companies, state transmission utilities, and DISCOMS, as well as various industries, such as petrochemicals, metals, paper, chemicals, cement, automotive, pharma, etc. The company was incorporated in 1974 and is based in Hosur, India.