Transport Corporation Of India CAPEX jumped on 26.1% and Revenue increased on 4.3%
23-06-2016 • About Transport Corporation Of India (
$TCI) • By InTwits
Transport Corporation Of India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.9% in FY2016 vs. 8.2% in FY2015 vs. 8.2% in FY2012
- Transport Corporation Of India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: ₹1,794m in FY2016, ₹1,423m in FY2015, ₹801m in FY2014, ₹656m in FY2013, ₹1,151m in FY2012
- The company has highly profitable business model: ROIC is 14.1%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Transport Corporation Of India's Revenue increased on 4.3%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.7 pp from 25.3% to 27.0% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 7.1%. CAPEX/Revenue increased on 4.0 pp from 3.1% in FY2013 to 7.1% in FY2016. It's average CAPEX/Revenue for the last three years was 5.5%. Transport Corporation Of India invested a large share of EBITDA (90.1%) to CAPEX. During the last 5 years CAPEX as a % of Revenue bottomed in FY2013 at 3.1% and was growing since that time.
Return on investment
The company operates at good ROIC (14.1%) and ROE (13.8%). ROIC decreased slightly on 0.84 pp from 15.0% to 14.1% in FY2016. ROE decreased slightly on 0.88 pp from 14.6% to 13.8% in FY2016. ROIC followed a declining trend at -0.60 pp per annum in FY2012-FY2016. ROE declined at -0.87 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.6x. Net Debt / EBITDA decreased on 0.042x from 1.4x to 1.4x in FY2016. Debt decreased slightly on 1.1% while cash increased on 5.8%. Net Debt/EBITDA stuck to a declining trend at -0.2x per annum in the last 5 years.
Transport Corporation Of India has short term refinancing risk: cash is only 20.2% of short term debt.
Valuation and dividends
Transport Corporation Of India's trades at EV/EBITDA 8.5x and P/E 17.4x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 86.0x with the industry average at 22.8x.
Management team
The company's CFO is Ashish Kumar Tiwari. Ashish Kumar Tiwari has 6 years tenure at the company.
Financial and operational results
Transport Corporation Of India ($TCI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,537 | 21,305 | 22,265 | 24,167 | 25,214 | 4.3% |
| SG&A | | | | | 19 | |
| EBITDA | 1,606 | 1,775 | 1,718 | 1,974 | 1,991 | 0.9% |
| Net Income | 595 | 695 | 716 | 814 | 817 | 0.4% |
Balance Sheet
|
|---|
| Cash | 17 | 8 | 420 | 412 | 436 | 5.8% |
| Short Term Debt | 2,571 | 2,871 | 2,937 | 2,419 | 2,164 | -10.5% |
| Long Term Debt | 839 | 674 | 418 | 778 | 1,000 | 28.4% |
Cash flow
|
|---|
| Capex | 1,151 | 656 | 801 | 1,423 | 1,794 | 26.1% |
Ratios
|
|---|
| Revenue growth | 5.5% | 9.0% | 4.5% | 8.5% | 4.3% | |
| EBITDA growth | 12.8% | 10.6% | -3.2% | 14.9% | 0.9% | |
|
|---|
| EBITDA Margin | 8.2% | 8.3% | 7.7% | 8.2% | 7.9% | -0.3% |
| SG&A, % of revenue | | | | | 0.1% | |
| Net Income Margin | 3.0% | 3.3% | 3.2% | 3.4% | 3.2% | -0.1% |
| CAPEX, % of revenue | 5.9% | 3.1% | 3.6% | 5.9% | 7.1% | 1.2% |
|
|---|
| ROIC | 16.5% | 16.2% | 14.4% | 15.0% | 14.1% | -0.8% |
| ROE | 16.9% | 17.1% | 15.4% | 14.6% | 13.8% | -0.9% |
| Net Debt/EBITDA | 2.1x | 2.0x | 1.7x | 1.4x | 1.4x | -0.0x |
Peers in Surface Transportation
Below you can find Transport Corporation Of India benchmarking vs. other companies in Surface Transportation 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 |
|---|
| Mahasagar Travels ($MHSGRMS) | - | -6.4% | 9.4% | 12.6% | 1.4% |
| Chartered Logistics ($CHLOGIST) | - | -2.6% | -35.6% | 8.4% | -5.9% |
| Inter State Oil Carrier ($INTSTOIL) | - | -13.5% | 1.8% | 14.7% | -9.9% |
| Abc India ($ABCINDQ) | - | -30.3% | -8.7% | -7.2% | -12.5% |
| Patel Integrated Logistics ($PATINTLOG) | - | 12.7% | 6.5% | 8.2% | -13.0% |
| |
|---|
| Median (5 companies) | - | -6.4% | 1.8% | 8.4% | -9.9% |
|---|
| Transport Corporation Of India ($TCI) | - | 9.0% | 4.5% | 8.5% | 4.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mahasagar Travels ($MHSGRMS) | 9.3% | - | - | 2.8% | 9.4% |
| Chartered Logistics ($CHLOGIST) | 12.6% | 10.3% | 6.1% | - | 8.1% |
| Patel Integrated Logistics ($PATINTLOG) | 3.7% | 3.3% | 3.0% | 3.7% | 4.2% |
| Abc India ($ABCINDQ) | 9.6% | 16.0% | 2.1% | -0.4% | 0.1% |
| |
|---|
| Median (4 companies) | 9.6% | 11.2% | 4.6% | 3.3% | 6.2% |
|---|
| Transport Corporation Of India ($TCI) | 8.2% | 8.3% | 7.7% | 8.2% | 7.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chartered Logistics ($CHLOGIST) | 4.5% | - | 0.8% | - | 1.1% |
| |
|---|
| Median (1 company) | 8.1% | 1.6% | 0.7% | 0.6% | 1.1% |
|---|
| Transport Corporation Of India ($TCI) | 5.9% | 3.1% | 3.6% | 5.9% | 7.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Patel Integrated Logistics ($PATINTLOG) | 9.5% | 9.0% | 8.5% | 12.5% | 11.5% |
| Coastal Roadways ($COARO) | 8.9% | 4.0% | - | - | - |
| Balurghat Technologies ($BALTE) | - | - | - | - | - |
| Abc India ($ABCINDQ) | - | 13.7% | - | - | - |
| Chartered Logistics ($CHLOGIST) | 17.3% | 10.7% | -0.3% | - | - |
| |
|---|
| Median (7 companies) | 13.4% | 9.0% | 4.1% | 12.5% | 11.5% |
|---|
| Transport Corporation Of India ($TCI) | 16.5% | 16.2% | 14.4% | 15.0% | 14.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chartered Logistics ($CHLOGIST) | 3.0x | 3.4x | 8.5x | - | 3.4x |
| Patel Integrated Logistics ($PATINTLOG) | 1.4x | 1.5x | 1.8x | 1.5x | 1.1x |
| Balurghat Technologies ($BALTE) | 0.0x | 0.0x | 0.0x | - | 0.0x |
| Coastal Roadways ($COARO) | 0.9x | 1.7x | - | 0.0x | 0.0x |
| Mahasagar Travels ($MHSGRMS) | 0.5x | - | - | 0.0x | 0.0x |
| |
|---|
| Median (6 companies) | 1.4x | 2.0x | 0.0x | 0.0x | 0.0x |
|---|
| Transport Corporation Of India ($TCI) | 2.1x | 2.0x | 1.7x | 1.4x | 1.4x |
