Motor Sich revenue improves 23%, EBITDA 125% in 9M14

Motor Sich revenue improves 23%, EBITDA 125% in 9M14



27 жовтня 2014 года
Конкорд Капитал

Мотор Сич (MSICH)


The CIS-leading producer of aerospace engines, Motor Sich (MSICH UK), boosted its net revenue 23% yoy to UAH 7.26 bln in 9M14, according to its regulatory filing on Oct. 24. The company’s EBITDA increased 2.25x yoy to UAH 3.41 bln and its bottom line grew 55% yoy to UAH 1.53 bln.



Its cash flow from operating activities increased 53% yoy to UAH 1.09 bln in 9M14. Its free cash flow more than doubled to UAH 477 mln, enabling the company to report net cash of UAH 245 mln as of end-September (compared to a net debt of UAH 75 mln as of end-December 2013).



In 3Q14 alone, Motor Sich hiked its net revenue 26% yoy to UAH 2.56 bln, tripled its EBITDA to UAH 1.24 bln while posting a negative bottom line of UAH -9 mln. The latter is attributed to “other expenses” reported in 3Q14 in the amount of UAH 1.03 bln. The company generated UAH 274 mln from its 3Q14 operating activities, 41% higher than the same year-ago period.



Alexander Paraschiy: The top line of Motor Sich, which exports most of its products, decreased about 20% in USD terms in 3Q14, which is discouraging. At the same time, its record-high EBITDA margin of 48% in the quarter suggests that the company managed to adjust its production costs to a change in its demand trends.



In any case, given the lack of information on the company’s interim operating results, it’s hard to predict the company’s P&L trend for 2014 and 2015 at the moment. We are retaining our neutral position on Motor Sich stock, even though it trades at 0.9x EV/LTM EBITDA.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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