Diamond Power Infrastructure EBITDA dropped on 374% and EBITDA Margin decreased on 6.6 pp from 1.5% to -5.1%
22-07-2016 • About Diamond Power Infrastructure (
$DIAPOWER) • By InTwits
Diamond Power Infrastructure reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: -5.1% in FY2016, 1.5% in FY2015, 8.9% in FY2014, 8.8% in FY2013, 11.1% in FY2012
- The company has unprofitable business model: ROIC is -5.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Diamond Power Infrastructure's Revenue dropped on 19.8%. Revenue decline was accelerating on average at -14.6 pp per annum in FY2012-FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.0 pp from 2.2% to 9.2% in FY2016. EBITDA Margin followed a declining trend at -4.0 pp per annum in the last 5 years.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin decreased on 8.1 pp from -6.7% to -14.8% in FY2016. Net Income margin stuck to a declining trend at -5.3 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Diamond Power Infrastructure's CAPEX/Revenue was 3.6% in FY2016. CAPEX/Revenue decreased on 3.3 pp from 6.8% in FY2013 to 3.6% in FY2016. For the last three years the average CAPEX/Revenue was 6.9%.
Return on investment
The company operates at negative ROIC (-5.9%) and ROE (-48.2%). ROIC decreased on 5.5 pp from -0.35% to -5.9% in FY2016. ROE dropped on 28.1 pp from -20.2% to -48.2% in FY2016. ROIC stuck to a declining trend at -5.6 pp per annum in FY2012-FY2016. ROE followed a declining trend at -17.3 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 46.8x from 46.8x to in FY2016. Debt surged on 15.3% while cash surged on 38.0%.
Diamond Power Infrastructure has short term refinancing risk: cash is only 8.1% of short term debt.
Financial and operational results
Diamond Power Infrastructure ($DIAPOWER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,182 | 25,813 | 31,776 | 27,723 | 22,222 | -19.8% |
| SG&A | | | 193 | 15 | 71 | 374.8% |
| EBITDA | 2,240 | 2,280 | 2,820 | 416 | -1,141 | -374.0% |
| Net Income | 1,256 | 1,041 | 1,109 | -1,844 | -3,280 | |
Balance Sheet
|
|---|
| Cash | 155 | 325 | 81 | 643 | 888 | 38.0% |
| Short Term Debt | 3,923 | 5,634 | 6,403 | 8,789 | 10,895 | 24.0% |
| Long Term Debt | 3,657 | 6,520 | 7,129 | 11,347 | 12,313 | 8.5% |
Cash flow
|
|---|
| Capex | | 1,765 | 2,668 | 2,409 | 794 | -67.0% |
Ratios
|
|---|
| Revenue growth | 32.7% | 27.9% | 23.1% | -12.8% | -19.8% | |
| EBITDA growth | 20.8% | 1.8% | 23.7% | -85.2% | -374.0% | |
|
|---|
| EBITDA Margin | 11.1% | 8.8% | 8.9% | 1.5% | -5.1% | -6.6% |
| SG&A, % of revenue | | | 0.6% | 0.1% | 0.3% | 0.3% |
| Net Income Margin | 6.2% | 4.0% | 3.5% | -6.7% | -14.8% | -8.1% |
| CAPEX, % of revenue | | 6.8% | 8.4% | 8.7% | 3.6% | -5.1% |
|
|---|
| ROIC | 16.1% | 11.7% | 11.3% | -0.4% | -5.9% | -5.5% |
| ROE | 20.9% | 14.8% | 12.8% | -20.2% | -48.2% | -28.1% |
| Net Debt/EBITDA | 3.3x | 5.2x | 4.8x | 46.8x | |
Peers in Other Elect.Equip./ Prod.
Below we provide Diamond Power Infrastructure benchmarking against other companies in Other Elect.Equip./ Prod. 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 |
|---|
| Salzer Electronics ($SALZER) | - | 2.6% | 6.9% | 15.9% | 27.5% |
| Ultracab (India) ($ULTRACAB) | - | 26.2% | 10.5% | 10.6% | 17.7% |
| B.C. Power Controls ($BCP) | - | -2.2% | 2.2% | 115.3% | 10.5% |
| Kirloskar Electric Company ($KECL) | - | -1.7% | -7.6% | -48.5% | 7.3% |
| Cords Cable Industries ($CORDSCABLE) | - | 2.3% | -31.8% | 0.8% | 6.9% |
| |
|---|
| Median (14 companies) | 12.7% | -2.2% | -7.6% | 7.3% | -4.0% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | - | 27.9% | 23.1% | -12.8% | -19.8% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Malvica Engineering ($MALVICAE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fluidomat ($FLUIDOM) | - | - | - | 28.0% | - |
| Indosolar ($INDOSOLAR) | -114.4% | -52.7% | -140.0% | 16.3% | 3.3% |
| Genus Power Infrastructures ($GENUSPOWER) | 14.1% | 11.0% | 13.8% | 13.8% | 14.8% |
| Salzer Electronics ($SALZER) | 12.9% | 12.5% | 12.4% | 12.6% | 12.1% |
| Pitti Laminations ($PITTILAM) | 15.6% | 13.6% | 13.2% | 12.0% | 6.2% |
| |
|---|
| Median (16 companies) | 8.0% | 9.0% | 9.1% | 10.3% | 10.0% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 11.1% | 8.8% | 8.9% | 1.5% | -5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Salzer Electronics ($SALZER) | 6.8% | 5.6% | 4.1% | 8.2% | 9.8% |
| Indosolar ($INDOSOLAR) | 311.2% | 148.3% | 42.3% | 26.9% | 7.1% |
| Genus Power Infrastructures ($GENUSPOWER) | 3.4% | 3.6% | 2.0% | 2.2% | 3.7% |
| Hbl Power Systems ($HBLPOWER) | 6.0% | 3.9% | 1.3% | 2.1% | 1.5% |
| Kirloskar Electric Company ($KECL) | 1.8% | 0.7% | 1.8% | 2.3% | 0.3% |
| |
|---|
| Median (5 companies) | 3.1% | 4.0% | 3.6% | 2.9% | 3.7% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | - | 6.8% | 8.4% | 8.7% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Salzer Electronics ($SALZER) | 14.6% | 12.7% | 13.0% | 14.6% | 13.8% |
| Genus Power Infrastructures ($GENUSPOWER) | 12.4% | 8.0% | 12.2% | 13.5% | 12.7% |
| Hbl Power Systems ($HBLPOWER) | 10.6% | 10.1% | 4.3% | 6.7% | 6.5% |
| Malvica Engineering ($MALVICAE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Indosolar ($INDOSOLAR) | -14.0% | -6.8% | -5.2% | 2.2% | -3.0% |
| |
|---|
| Median (24 companies) | 8.9% | 8.0% | 7.0% | 6.7% | 3.3% |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 16.1% | 11.7% | 11.3% | -0.4% | -5.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Indosolar ($INDOSOLAR) | - | - | - | 20.3x | 66.3x |
| Hbl Power Systems ($HBLPOWER) | 4.1x | 4.4x | 6.8x | 4.7x | 4.2x |
| Salzer Electronics ($SALZER) | 1.9x | 2.2x | 2.6x | 2.7x | 2.2x |
| Genus Power Infrastructures ($GENUSPOWER) | 3.2x | 3.9x | 2.9x | 2.7x | 1.5x |
| Birla Ericsson Optical ($BIRLAERIC) | 14.5x | 2.9x | 1.3x | 1.6x | 0.0x |
| |
|---|
| Median (13 companies) | 3.6x | 4.1x | 2.6x | 0.0x | 0.0x |
|---|
| Diamond Power Infrastructure ($DIAPOWER) | 3.3x | 5.2x | 4.8x | 46.8x | - |
