Revathi Equipment reports 596% Net Income growth in 2016 and 1.6 pp EBITDA Margin growth from 12.7% to 14.3%
31-05-2016 • About Revathi Equipment (
$REVATHI) • By InTwits
Revathi Equipment reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 14.3% in FY2016, 12.7% in FY2015, 7.4% in FY2014, 11.2% in FY2013, 5.0% in FY2012
- The company has highly profitable business model: ROIC is 14.4%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 50.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.0 pp from -26.4% to -45.3% in FY2016.
Net Income margin increased on 8.7 pp from 2.4% to 11.1% in FY2016.
Return on investment
The company operates at high and attractive ROE (20.1%) while ROIC is a bit lower (14.4%).
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 2.7x to 1.8x in FY2016. Debt jumped on 30.2% while cash jumped on 122%.
Revathi Equipment has short term refinancing risk: cash is only 25.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 8.3x and P/E 8.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Revathi Equipment ($REVATHI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,989 | 2,193 | 1,758 | 1,631 | 2,452 | 50.3% |
| EBITDA | 99 | 245 | 130 | 206 | 350 | 69.8% |
| Net Income | -38 | 35 | -126 | 39 | 273 | 595.9% |
Balance Sheet
|
|---|
| Cash | 53 | 120 | | 99 | 219 | 122.3% |
| Short Term Debt | 938 | 806 | | 547 | 847 | 54.9% |
| Long Term Debt | 5 | 4 | | 104 | 1 | -99.1% |
Cash flow
|
|---|
| Capex | 40 | | | 17 | | |
Ratios
|
|---|
| Revenue growth | -8.8% | 10.3% | -19.9% | -7.2% | 50.3% | |
| EBITDA growth | -57.1% | 147.8% | -46.8% | 58.2% | 69.8% | |
|
|---|
| EBITDA Margin | 5.0% | 11.2% | 7.4% | 12.7% | 14.3% | 1.6% |
| Net Income Margin | -1.9% | 1.6% | -7.2% | 2.4% | 11.1% | 8.7% |
| CAPEX, % of revenue | 2.0% | | | 1.0% | | |
|
|---|
| ROIC | 1.8% | 9.0% | | | 14.4% | |
| ROE | -3.0% | 2.7% | | | 20.1% | |
| Net Debt/EBITDA | 9.0x | 2.8x | 0.0x | 2.7x | 1.8x | -0.9x |
Peers in Industrial Machinery
Below we provide Revathi Equipment benchmarking against other companies in Industrial Machinery 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 |
|---|
| Batliboi ($BATLIBOI) | - | - | - | -54.5% | 74.2% |
| Wpil ($WPIL) | - | 38.4% | 0.3% | -5.5% | 51.3% |
| Nitin Fire Protection Industries ($NITINFIRE) | - | 31.5% | 44.2% | 12.2% | 29.8% |
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | - | 22.3% | 27.3% |
| Manugraph India ($MANUGRAPH) | - | -17.4% | -19.8% | -14.6% | 22.6% |
| |
|---|
| Median (27 companies) | 2.7% | 2.2% | 3.0% | 3.3% | 6.7% |
|---|
| Revathi Equipment ($REVATHI) | - | 10.3% | -19.9% | -7.2% | 50.3% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bell Agromachina ($BELAGRO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 40.5% | - |
| Dhp India ($DHPIND) | - | - | - | 26.3% | - |
| Shilp Gravures ($SHILGRAVQ) | - | - | - | 19.4% | - |
| Solitaire Machine Tools ($SOLIMAC) | - | - | - | 19.4% | - |
| Wendt (India) ($WENDT) | 28.3% | 21.6% | 18.6% | 19.0% | 16.5% |
| |
|---|
| Median (46 companies) | 11.6% | 9.5% | 10.7% | 10.5% | 9.8% |
|---|
| Revathi Equipment ($REVATHI) | 5.0% | 11.2% | 7.4% | 12.7% | 14.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 14.0% | - |
| Shakti Pumps (India) ($SHAKTIPUMP) | 5.8% | 19.0% | 6.1% | 9.9% | 7.5% |
| Wendt (India) ($WENDT) | 13.5% | 9.0% | 8.8% | 9.4% | 9.3% |
| Ingersoll-Rand (India) ($INGERRAND) | 4.3% | 10.9% | 3.6% | 9.2% | 6.7% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | 6.5% | 1.8% | 0.5% | 8.8% | 16.2% |
| |
|---|
| Median (23 companies) | 5.8% | 4.5% | 3.0% | 3.3% | 3.4% |
|---|
| Revathi Equipment ($REVATHI) | 2.0% | - | - | 1.0% | - |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greaves Cotton ($GREAVESCOT) | - | 24.8% | 16.3% | 26.7% | 25.7% |
| Honda Siel Power Products ($HONDAPOWER) | 16.9% | 8.8% | 11.5% | 15.3% | 18.3% |
| Lakshmi Machine Works ($LAXMIMACH) | 18.0% | 11.7% | 16.2% | 17.6% | 18.2% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | - | - | 11.9% | 13.9% | 17.0% |
| Ion Exchange (India) ($IONEXCHANG) | 11.0% | 15.1% | 8.8% | 13.1% | 16.4% |
| |
|---|
| Median (50 companies) | 13.5% | 11.4% | 10.2% | 13.0% | 10.8% |
|---|
| Revathi Equipment ($REVATHI) | 1.8% | 9.0% | - | - | 14.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wpil ($WPIL) | 2.4x | 2.3x | 2.2x | 0.8x | 5.4x |
| Kirloskar Brothers ($KIRLOSBROS) | 2.4x | 1.3x | 1.1x | 1.5x | 4.7x |
| Forbes & Company ($FORBESCO) | 2.2x | 3.3x | 4.7x | 6.3x | 4.3x |
| Elecon Engineering Co ($ELECON) | 3.0x | 3.2x | 4.0x | 3.1x | 3.9x |
| Dynamatic Technologies ($DYNAMATECH) | 5.0x | 4.1x | 3.4x | 2.7x | 3.8x |
| |
|---|
| Median (38 companies) | 1.1x | 1.3x | 0.0x | 0.0x | 0.0x |
|---|
| Revathi Equipment ($REVATHI) | 9.0x | 2.8x | 0.0x | 2.7x | 1.8x |
