Indosolar Net Debt / EBITDA surged on 46.0x from 20.3x to 66.3x in 2016 while EBITDA dropped on 82.3%
30-05-2016 • About Indosolar (
$INDOSOLAR) • By InTwits
Indosolar reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indosolar is a company in decline: FY2016 revenue growth was -11.8%, 5 years revenue CAGR was -13.9%
- Indosolar spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -12.4%
- Indosolar has high CAPEX intensity: 5 year average CAPEX/Revenue was 107.1%. At the same time it's a lot of higher than industry average of 5.2%.
- CAPEX is quite volatile: ₹183m in FY2016, ₹785m in FY2015, ₹65m in FY2014, ₹787m in FY2013, ₹2,531m in FY2012
- The company has unprofitable business model: ROIC is -3.0%
- It operates with high leverage: Net Debt/EBITDA is 66.3x while industry average is 10.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Indosolar's Revenue dropped on 11.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.1 pp from 82.8% to 86.9% in FY2016.
Net Income margin dropped on 28.1 pp from -26.8% to -54.9% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 7.1%. CAPEX/Revenue dropped on 141 pp from 148% in FY2013 to 7.1% in FY2016. For the last three years the average CAPEX/Revenue was 25.4%. The company has spent a lot to CAPEX (216% of EBITDA) which didn't stop revenue from falling. CAPEX as a % of Revenue stuck to a declining trend at -72.9 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 66.3x Net Debt / EBITDA and 66.4x Debt / EBITDA. Net Debt / EBITDA jumped on 46.0x from 20.3x to 66.3x in FY2016. Debt dropped on 42.5% while cash dropped on 91.8%.
Indosolar has short term refinancing risk: cash is only 1.2% of short term debt.
Management team
Indosolar's CFO Anand Kumar Agarwal has spent 12 years with the company.
Financial and operational results
Indosolar ($INDOSOLAR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 813 | 531 | 154 | 2,919 | 2,574 | -11.8% |
| EBITDA | -930 | -280 | -215 | 477 | 85 | -82.3% |
| Net Income | -2,024 | -1,239 | -1,370 | -782 | -1,413 | |
Balance Sheet
|
|---|
| Cash | 44 | 3 | 20 | 103 | 8 | -91.8% |
| Short Term Debt | 296 | 670 | 2,742 | 3,798 | 689 | -81.9% |
| Long Term Debt | 7,331 | 8,448 | 7,293 | 5,978 | 4,932 | -17.5% |
Cash flow
|
|---|
| Capex | 2,531 | 787 | 65 | 785 | 183 | -76.7% |
Ratios
|
|---|
| Revenue growth | -85.0% | -34.7% | -71.0% | 1,797.0% | -11.8% | |
| EBITDA growth | -396.6% | -69.9% | -23.1% | -321.5% | -82.3% | |
|
|---|
| EBITDA Margin | -114.4% | -52.7% | -140.0% | 16.3% | 3.3% | -13.1% |
| Net Income Margin | -248.8% | -233.2% | -890.0% | -26.8% | -54.9% | -28.1% |
| CAPEX, % of revenue | 311.2% | 148.3% | 42.3% | 26.9% | 7.1% | -19.8% |
|
|---|
| ROIC | -14.0% | -6.8% | -5.2% | 2.2% | -3.0% | -5.2% |
| ROE | -65.0% | -83.7% | | | | |
| Net Debt/EBITDA | | | | 20.3x | 66.3x | 46.0x |
Peers in Other Elect.Equip./ Prod.
Below you can find Indosolar benchmarking vs. other companies in Other Elect.Equip./ Prod. 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 |
|---|
| 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 ($EMGEECA) | - | -1.4% | 1.1% | -0.8% | -2.2% |
| |
|---|
| Median (12 companies) | 32.7% | -1.7% | 0.4% | 3.3% | -4.0% |
|---|
| Indosolar ($INDOSOLAR) | - | -34.7% | -71.0% | 1,797.0% | -11.8% |
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% | - |
| 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 ($PITTILAM) | 15.6% | 13.6% | 13.2% | 12.0% | 6.2% |
| Birla Ericsson Optical ($BIRLAERIC) | 2.6% | 9.0% | 12.3% | 11.3% | 10.7% |
| |
|---|
| Median (16 companies) | 9.9% | 9.0% | 9.3% | 7.8% | 10.2% |
|---|
| Indosolar ($INDOSOLAR) | -114.4% | -52.7% | -140.0% | 16.3% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Diamond Power Infrastructure ($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 ($KECL) | 1.8% | 0.7% | 1.8% | 2.3% | 0.3% |
| Genus Power Infrastructures ($GENUSPOWER) | 3.4% | 3.6% | 2.0% | 2.2% | 3.7% |
| |
|---|
| Median (6 companies) | 2.8% | 4.0% | 3.6% | 2.9% | 2.6% |
|---|
| Indosolar ($INDOSOLAR) | 311.2% | 148.3% | 42.3% | 26.9% | 7.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Salzer Electronics ($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 ($MALVICAE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Kirloskar Electric Company ($KECL) | 9.0% | -3.6% | -16.5% | -30.9% | -12.4% |
| |
|---|
| Median (19 companies) | 9.0% | 9.2% | 10.5% | 6.7% | 6.5% |
|---|
| Indosolar ($INDOSOLAR) | -14.0% | -6.8% | -5.2% | 2.2% | -3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 3.3x | 5.2x | 4.8x | 46.8x | - |
| 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 ($GENUSPOWER) | 3.2x | 3.9x | 2.9x | 2.7x | 1.5x |
| Birla Ericsson Optical ($BIRLAERIC) | 14.5x | 2.9x | 1.3x | 1.6x | 0.0x |
| |
|---|
| Median (13 companies) | 3.4x | 4.2x | 2.8x | 0.0x | 0.0x |
|---|
| Indosolar ($INDOSOLAR) | - | - | - | 20.3x | 66.3x |
