Suzlon Energy Net Debt / EBITDA dropped on 11.2x from 19.1x to 7.8x in 2016 and Debt dropped on 35.8%
30 May 2016 • About Suzlon Energy (
$SUEL) • By InTwits
Suzlon Energy reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suzlon Energy is a company in decline: FY2016 revenue growth was -52.1%, 5 years revenue CAGR was -11.9%
- EBITDA Margin is expanding: 14.5% in FY2016 vs. 4.0% in FY2015 vs. 8.9% in FY2012
- EBITDA Margin is quite volatile: 14.5% in FY2016, 4.0% in FY2015, 0.8% in FY2014, -5.3% in FY2013, 8.9% in FY2012
- Suzlon Energy has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 321 in 2016, 1,122 in 2015, 1,428 in 2014, 1,271 in 2013, 1,228 in 2012
- The company has highly profitable business model: ROIC is at 12.4%
- It operates with high leverage: Net Debt/EBITDA is 7.8x while industry average is 4.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Suzlon Energy ($SUEL) key annual financial indicators
| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 210,824 | 187,431 | 202,116 | 198,367 | 95,085 | -52.1% |
| Gross Profit | 70,086 | 51,035 | 57,762 | 62,180 | 39,038 | -37.2% |
| EBITDA | 18,805 | -9,897 | 1,668 | 8,011 | 13,786 | 72.1% |
| Net Income | -4,786 | -45,600 | -33,768 | -91,577 | 4,826 | -105.3% |
Balance Sheet
|
|---|
| Cash | 26,323 | 19,590 | 24,479 | 25,428 | 6,293 | -75.3% |
| Short Term Debt | 66,693 | 43,331 | 54,124 | 70,244 | 22,045 | -68.6% |
| Long Term Debt | 73,647 | 108,577 | 116,409 | 107,866 | 92,263 | -14.5% |
Cash flow
|
|---|
| Capex | 8,947 | 6,900 | 6,905 | 7,363 | 3,970 | -46.1% |
Ratios
|
|---|
| Revenue growth | 17.9% | -11.1% | 7.8% | -1.9% | -52.1% | |
| EBITDA growth | 91.4% | -152.6% | -116.9% | 380.3% | 72.1% | |
| Gross Margin | 33.2% | 27.2% | 28.6% | 31.3% | 41.1% | 9.7% |
| EBITDA Margin | 8.9% | -5.3% | 0.8% | 4.0% | 14.5% | 10.5% |
| Net Income Margin | -2.3% | -24.3% | -16.7% | -46.2% | 5.1% | 51.2% |
| CAPEX, % of revenue | 4.2% | 3.7% | 3.4% | 3.7% | 4.2% | 0.5% |
| ROIC | 6.2% | -9.4% | -3.5% | -0.1% | 12.4% | 12.5% |
| ROE | -8.2% | -149.9% | | | | 0.0% |
| Net Debt/EBITDA | 6.1x | | 87.6x | 19.1x | 7.8x | -11.2x |
Revenue and profitability
Suzlon Energy's Revenue dropped on 52.1% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 10.5 pp from 4.0% to 14.5% in FY2016.
Gross Margin increased on 9.7 pp from 31.3% to 41.1% in FY2016.
Net Income marign jumped on 51.2 pp from -46.2% to 5.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Suzlon Energy's CAPEX/Revenue was 4.2% in FY2016. Suzlon Energy's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 3.8%.
Leverage (Debt)
Debt level is 7.8x Net Debt / EBITDA and 8.3x Debt / EBITDA. Net Debt / EBITDA dropped on 11.2x from 19.1x to 7.8x in FY2016. Debt dropped on 35.8% in FY2016 while cash dropped on 75.3% in FY2016.
Management team
Suzlon Energy's CEO Jayaram P Chalasani is a founder and has spent 2 years at the company.
Appendix 1: Peers in Heavy Electrical Equipment
Below you can find Suzlon Energy benchmarking vs. other companies in Heavy Electrical 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 Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crompton Greaves ($CGVD) | | 7.5% | 12.7% | -57.5% | -3.4% |
| |
|---|
| Median (1 company) | | 7.5% | 12.7% | -57.5% | -3.4% |
|---|
| Suzlon Energy ($SUEL) | | -11.1% | 7.8% | -1.9% | -52.1% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crompton Greaves ($CGVD) | 7.1% | 3.2% | 6.2% | 8.8% | 6.5% |
| |
|---|
| Median (1 company) | 7.1% | 3.2% | 6.2% | 8.8% | 6.5% |
|---|
| Suzlon Energy ($SUEL) | 8.9% | -5.3% | 0.8% | 4.0% | 14.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crompton Greaves ($CGVD) | 3.3% | 1.8% | 2.2% | 3.6% | 3.1% |
| |
|---|
| Median (1 company) | 3.3% | 1.8% | 2.2% | 3.6% | 3.1% |
|---|
| Suzlon Energy ($SUEL) | 4.2% | 3.7% | 3.4% | 3.7% | 4.2% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crompton Greaves ($CGVD) | 12.9% | 3.5% | 10.1% | 4.1% | 1.7% |
| |
|---|
| Median (1 company) | 12.9% | 3.5% | 10.1% | 4.1% | 1.7% |
|---|
| Suzlon Energy ($SUEL) | 6.2% | -9.4% | -3.5% | -0.1% | 12.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Crompton Greaves ($CGVD) | 0.6x | 3.9x | 1.9x | 2.8x | 1.8x |
| |
|---|
| Median (1 company) | 0.6x | 3.9x | 1.9x | 2.8x | 1.8x |
|---|
| Suzlon Energy ($SUEL) | 6.1x | | 87.6x | 19.1x | 7.8x |
