Opto Circuits (India) Net Debt / EBITDA jumped on 29.7x from 7.4x to 37.1x in 2016 while EBITDA dropped on 87.6%
14-06-2016 • About Opto Circuits (India) (
$OPTOCIRCUI) • By InTwits
Opto Circuits (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Opto Circuits (India) is a company in decline: FY2016 revenue growth was -73.7%, 5 years revenue CAGR was -27.8%
- Opto Circuits (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.0%
- CAPEX is quite volatile: ₹125m in FY2016, ₹0m in FY2015, ₹191m in FY2014, ₹1,055m in FY2013, ₹3,342m in FY2012
- The company has unprofitable business model: ROIC is -0.4%
- It operates with high leverage: Net Debt/EBITDA is 37.1x while industry average is 18.5x
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 dropped on 73.7%. Revenue decline was accelerating on average at -26.2 pp per annum in FY2012-FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.7 pp from 20.2% to 9.5% in FY2016. EBITDA Margin followed a declining trend at -3.8 pp per annum in the last 5 years.
Net Income margin surged on 12.4 pp from -13.2% to -0.78% in FY2016. During the last 5 years Net Income margin bottomed in FY2015 at -13.2%.
Investments (CAPEX, working capital and M&A)
Opto Circuits (India)'s CAPEX/Revenue was 4.0% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at negative ROIC (-0.4%) and ROE (-0.1%). ROIC decreased on 4.1 pp from 3.8% to -0.36% in FY2016. ROE increased on 7.3 pp from -7.5% to -0.13% in FY2016. ROIC stuck to a declining trend at -5.8 pp per annum in the last 5 years. ROE followed a declining trend at -10.2 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 37.1x and Debt / EBITDA is 37.3x. Net Debt / EBITDA surged on 29.7x from 7.4x to 37.1x in FY2016. Debt dropped on 38.3% while cash dropped on 71.8%. Net Debt/EBITDA pursued a growing trend in FY2012-FY2016.
Opto Circuits (India) has short term refinancing risk: cash is only 0.6% of short term debt.
Management team
Opto Circuits (India)'s CFO is Venkataraman Sundar. Venkataraman Sundar has 5 years tenure at the company.
Financial and operational results
Opto Circuits (India) ($OPTOCIRCUI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 23,569 | 23,994 | 14,080 | 11,868 | 3,116 | -73.7% |
| EBITDA | 6,229 | 5,905 | 2,641 | 2,397 | 296 | -87.6% |
| Net Income | 5,719 | 3,798 | 910 | -1,564 | -24 | |
Balance Sheet
|
|---|
| Cash | 1,662 | 406 | 176 | 238 | 67 | -71.8% |
| Short Term Debt | 7,645 | 12,278 | 13,873 | 17,727 | 10,360 | -41.6% |
| Long Term Debt | 2,969 | 2,257 | 1,924 | 185 | 685 | 270.4% |
Cash flow
|
|---|
| Capex | 3,342 | 1,055 | 191 | 0 | 125 | |
Ratios
|
|---|
| Revenue growth | 48.5% | 1.8% | -41.3% | -15.7% | -73.7% | |
| EBITDA growth | 32.1% | -5.2% | -55.3% | -9.2% | -87.6% | |
|
|---|
| EBITDA Margin | 26.4% | 24.6% | 18.8% | 20.2% | 9.5% | -10.7% |
| Net Income Margin | 24.3% | 15.8% | 6.5% | -13.2% | -0.8% | 12.4% |
| CAPEX, % of revenue | 14.2% | 4.4% | 1.4% | 0.0% | 4.0% | |
|
|---|
| ROIC | 22.6% | 15.7% | 5.0% | 3.8% | -0.4% | -4.1% |
| ROE | 37.3% | 20.1% | 4.2% | -7.5% | -0.1% | 7.3% |
| Net Debt/EBITDA | 1.4x | 2.4x | 5.9x | 7.4x | 37.1x | 29.7x |
Peers in Medical Equipment
Below you can find Opto Circuits (India) benchmarking vs. other companies in Medical 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 EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centenial Surgical Suture ($CSURGSU) | - | - | - | 10.0% | - |
| |
|---|
| Median (1 company) | - | - | - | 10.0% | - |
|---|
| Opto Circuits (India) ($OPTOCIRCUI) | 26.4% | 24.6% | 18.8% | 20.2% | 9.5% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centenial Surgical Suture ($CSURGSU) | - | - | - | - | - |
| |
|---|
| Median (1 company) | - | - | - | - | - |
|---|
| Opto Circuits (India) ($OPTOCIRCUI) | 22.6% | 15.7% | 5.0% | 3.8% | -0.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Centenial Surgical Suture ($CSURGSU) | 2.1x | 0.0x | 0.0x | 0.0x | 0.0x |
| |
|---|
| Median (1 company) | 2.1x | 0.0x | 0.0x | 0.0x | 0.0x |
|---|
| Opto Circuits (India) ($OPTOCIRCUI) | 1.4x | 2.4x | 5.9x | 7.4x | 37.1x |
