Ucal Fuel Systems Debt dropped on 33.5% and EBITDA decreased on 8.5%
31-05-2016 • About Ucal Fuel Systems (
$UCALFUEL) • By InTwits
Ucal Fuel Systems reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ucal Fuel Systems has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 11.1%.
- CAPEX is quite volatile: ₹147m in FY2016, ₹126m in FY2015, ₹54m in FY2014, ₹106m in FY2013, ₹522m in FY2012
- The company has highly profitable business model: ROIC is 14.9%
- It operates with high leverage: Net Debt/EBITDA is 2.6x 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
Ucal Fuel Systems's Revenue decreased slightly on 1.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.80 pp from 11.9% to 11.1% in FY2016.
Net Income margin decreased slightly on 1.2 pp from 3.3% to 2.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.0%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.5%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.85% and was growing since that time.
Return on investment
The company operates at high and attractive ROE (23.3%) while ROIC is a bit lower (14.9%). ROIC increased slightly on 0.63 pp from 14.3% to 14.9% in FY2016. ROE dropped on 17.1 pp from 40.3% to 23.3% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 8.4% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 2.6x. Net Debt / EBITDA dropped on 1.0x from 3.6x to 2.6x in FY2016. Debt dropped on 33.5% while cash dropped on 23.2%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2014 at 5.7x and was declining since that time.
Ucal Fuel Systems has short term refinancing risk: cash is only 0.9% of short term debt.
Financial and operational results
Ucal Fuel Systems ($UCALFUEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,803 | 6,536 | 6,438 | 7,377 | 7,237 | -1.9% |
| EBITDA | 853 | 675 | 626 | 881 | 806 | -8.5% |
| Net Income | 239 | 60 | 68 | 246 | 155 | -37.0% |
Balance Sheet
|
|---|
| Cash | 54 | 17 | 16 | 15 | 12 | -23.2% |
| Short Term Debt | 1,485 | 1,716 | 1,873 | 2,068 | 1,289 | -37.7% |
| Long Term Debt | 2,271 | 2,066 | 1,695 | 1,101 | 819 | -25.7% |
Cash flow
|
|---|
| Capex | 522 | 106 | 54 | 126 | 147 | 16.5% |
Ratios
|
|---|
| Revenue growth | 12.1% | -3.9% | -1.5% | 14.6% | -1.9% | |
| EBITDA growth | 0.3% | -21.0% | -7.2% | 40.7% | -8.5% | |
|
|---|
| EBITDA Margin | 12.5% | 10.3% | 9.7% | 11.9% | 11.1% | -0.8% |
| Net Income Margin | 3.5% | 0.9% | 1.1% | 3.3% | 2.1% | -1.2% |
| CAPEX, % of revenue | 7.7% | 1.6% | 0.8% | 1.7% | 2.0% | 0.3% |
|
|---|
| ROIC | 13.5% | 9.3% | 8.4% | 14.3% | 14.9% | 0.6% |
| ROE | 41.9% | 9.9% | 11.9% | 40.3% | 23.3% | -17.1% |
| Net Debt/EBITDA | 4.3x | 5.6x | 5.7x | 3.6x | 2.6x | -1.0x |
Peers in Auto Parts & Equipment
Below we provide Ucal Fuel Systems benchmarking against other companies in Auto Parts & Equipment 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 |
|---|
| 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 ($SPECTRA) | - | 40.2% | -10.1% | 57.1% | 11.1% |
| |
|---|
| Median (36 companies) | 12.1% | 2.7% | 5.0% | 8.7% | 2.8% |
|---|
| Ucal Fuel Systems ($UCALFUEL) | - | -3.9% | -1.5% | 14.6% | -1.9% |
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 ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | 17.4% |
| |
|---|
| Median (45 companies) | 10.8% | 9.8% | 10.8% | 9.9% | 10.9% |
|---|
| Ucal Fuel Systems ($UCALFUEL) | 12.5% | 10.3% | 9.7% | 11.9% | 11.1% |
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 ($JBMA) | 9.8% | 8.4% | - | 14.4% | 7.8% |
| |
|---|
| Median (23 companies) | 5.7% | 4.6% | 4.9% | 4.7% | 5.3% |
|---|
| Ucal Fuel Systems ($UCALFUEL) | 7.7% | 1.6% | 0.8% | 1.7% | 2.0% |
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 ($FIEMIND) | 18.7% | 16.9% | 19.9% | 20.2% | 23.1% |
| |
|---|
| Median (49 companies) | 16.4% | 12.7% | 15.6% | 14.8% | 13.9% |
|---|
| Ucal Fuel Systems ($UCALFUEL) | 13.5% | 9.3% | 8.4% | 14.3% | 14.9% |
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 ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x |
| |
|---|
| Median (40 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.0x |
|---|
| Ucal Fuel Systems ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | 2.6x |
