Munjal Auto Industries EBITDA dropped on 28.4% and EBITDA Margin decreased on 2.2 pp from 7.8% to 5.6%
30-05-2016 • About Munjal Auto Industries (
$MUNJALAU) • By InTwits
Munjal Auto Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Munjal Auto Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: ₹105m in FY2016, ₹416m in FY2015, ₹544m in FY2014, ₹141m in FY2013, ₹171m in FY2012
- The company has business model with average profitability: ROIC is 11.3%
- It operates with high leverage: Net Debt/EBITDA is 1.0x 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
Munjal Auto Industries's Revenue showed almost no change in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 7.8% to 5.6% in FY2016.
Net Income margin decreased on 2.0 pp from 4.3% to 2.3% in FY2016. Net Income margin declined at -0.97 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Munjal Auto Industries's CAPEX/Revenue was 1.2% in FY2016. The company's CAPEX/Revenue decreased slightly on 0.78 pp from 2.0% in FY2013 to 1.2% in FY2016. It's average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at low ROIC (11.3%) and ROE (9.4%). ROIC decreased on 7.6 pp from 19.0% to 11.3% in FY2016. ROE decreased on 9.9 pp from 19.3% to 9.4% in FY2016. ROIC declined at -4.1 pp per annum in the last 5 years. ROE followed a declining trend at -7.1 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 1.1x to 1.0x in FY2016. Debt dropped on 33.5% while cash dropped on 15.4%.
Munjal Auto Industries has short term refinancing risk: cash is only 27.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 9.0x and P/E 19.7x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 11.5x with the industry average at 22.8x.
Financial and operational results
Munjal Auto Industries ($MUNJALAU) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,799 | 7,173 | 8,165 | 8,883 | 8,851 | -0.4% |
| EBITDA | 625 | 540 | 638 | 689 | 493 | -28.4% |
| Net Income | 443 | 395 | 477 | 380 | 201 | -47.2% |
Balance Sheet
|
|---|
| Cash | 4 | 61 | 95 | 24 | 20 | -15.4% |
| Short Term Debt | 51 | 55 | 245 | 212 | 72 | -66.1% |
| Long Term Debt | 488 | 456 | 576 | 589 | 461 | -21.8% |
Cash flow
|
|---|
| Capex | 171 | 141 | 544 | 416 | 105 | -74.9% |
Ratios
|
|---|
| Revenue growth | 30.8% | 5.5% | 13.8% | 8.8% | -0.4% | |
| EBITDA growth | 41.4% | -13.5% | 18.2% | 7.9% | -28.4% | |
|
|---|
| EBITDA Margin | 9.2% | 7.5% | 7.8% | 7.8% | 5.6% | -2.2% |
| Net Income Margin | 6.5% | 5.5% | 5.8% | 4.3% | 2.3% | -2.0% |
| CAPEX, % of revenue | 2.5% | 2.0% | 6.7% | 4.7% | 1.2% | -3.5% |
|
|---|
| ROIC | 30.6% | 21.5% | 21.1% | 19.0% | 11.3% | -7.6% |
| ROE | 40.6% | 28.3% | 28.1% | 19.3% | 9.4% | -9.9% |
| Net Debt/EBITDA | 0.9x | 0.8x | 1.1x | 1.1x | 1.0x | -0.1x |
Peers in Auto Parts & Equipment
Below you can find Munjal Auto Industries 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 |
|---|
| Suprajit Engineering ($SUPRAJIT) | - | 9.4% | 17.9% | 12.2% | 55.7% |
| Fiem Industries ($FIEMIND) | - | 13.4% | 18.7% | 14.5% | 19.4% |
| 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 ($SPECTRA) | - | 40.2% | -10.1% | 57.1% | 11.1% |
| |
|---|
| Median (35 companies) | 12.1% | 2.4% | 4.9% | 9.2% | 2.9% |
|---|
| Munjal Auto Industries ($MUNJALAU) | - | 5.5% | 13.8% | 8.8% | -0.4% |
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% |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | 17.4% |
| |
|---|
| Median (45 companies) | 11.1% | 9.9% | 10.8% | 10.3% | 10.9% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 9.2% | 7.5% | 7.8% | 7.8% | 5.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | 27.9% |
| Fiem Industries ($FIEMIND) | 12.5% | 4.7% | 6.7% | 7.2% | 11.2% |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| Steel Strips Wheels ($SSWL) | 13.3% | 11.4% | 5.8% | 4.5% | 9.7% |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | 7.8% |
| |
|---|
| Median (22 companies) | 5.8% | 4.6% | 4.6% | 4.5% | 5.5% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 2.5% | 2.0% | 6.7% | 4.7% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | 25.1% |
| 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% |
| Fiem Industries ($FIEMIND) | 18.7% | 16.9% | 19.9% | 20.2% | 23.1% |
| |
|---|
| Median (48 companies) | 15.7% | 11.9% | 14.5% | 14.5% | 14.2% |
|---|
| Munjal Auto Industries ($MUNJALAU) | 30.6% | 21.5% | 21.1% | 19.0% | 11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 2.0x | 1.5x | 1.5x | 2.2x | 4.3x |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Jbm Auto ($JBMA) | 3.0x | 2.8x | 1.7x | 2.5x | 2.7x |
| Rico Auto Industries ($RICOAUTO) | 3.6x | 4.2x | 2.3x | 1.5x | 2.1x |
| Subros ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x |
| |
|---|
| Median (39 companies) | 1.3x | 2.3x | 0.7x | 0.0x | 0.0x |
|---|
| Munjal Auto Industries ($MUNJALAU) | 0.9x | 0.8x | 1.1x | 1.1x | 1.0x |
