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Alkyl Amines Chemicals CAPEX surged on 56.0% in 2015 and Revenue increased on 6.8%

15-05-2015 • About Alkyl Amines Chemicals ($ALKYLAMINE) • By InTwits

Alkyl Amines Chemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Alkyl Amines Chemicals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's in pair with industry average of 7.7%.
  • CAPEX is quite volatile: 410 in FY2015, 263 in FY2014, 240 in FY2013, 147 in FY2012, 189 in FY2011
  • The company has highly profitable business model: ROIC is at 23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Alkyl Amines Chemicals ($ALKYLAMINE) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue2,3592,8803,6594,4614,7646.8%
EBITDA3134575858498742.9%
Net Income1401762424334514.3%
Balance Sheet
Cash11495011756-52.7%
Short Term Debt657711855850605-28.8%
Long Term Debt544523600648560-13.6%
Cash flow
Capex18914724026341056.0%
Ratios
Revenue growth-57.8%22.1%27.0%21.9%6.8%
EBITDA growth-11.2%46.1%27.9%45.1%2.9%
EBITDA Margin13.3%15.9%16.0%19.0%18.3%-0.7%
Net Income Margin5.9%6.1%6.6%9.7%9.5%-0.2%
CAPEX, % of revenue8.0%5.1%6.6%5.9%8.6%2.7%
ROIC10.3%16.0%18.7%25.0%23.7%-1.3%
ROE17.5%19.2%22.6%32.5%27.0%-5.5%
Net Debt/EBITDA3.8x2.6x2.4x1.6x1.3x-0.4x

Revenue and profitability


Alkyl Amines Chemicals's Revenue increased on 6.8% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 3.2% to -0.99% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


Alkyl Amines Chemicals's CAPEX/Revenue was 8.6% in FY2015. Alkyl Amines Chemicals showed CAPEX/Revenue growth of 3.5 pp from 5.1% in FY2012 to 8.6% in FY2015. Average CAPEX/Revenue for the last three years was 7.0%.

Return on investment


The company operates at high and attractive ROIC (23.67%) and ROE (27.01%). ROIC decreased slightly on 1.3 pp from 25.0% to 23.7% in FY2015. ROE decreased on 5.5 pp from 32.5% to 27.0% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.3x. Net Debt / EBITDA dropped on 0.4x from 1.6x to 1.3x in FY2015. Debt dropped on 22.3% in FY2015 while cash dropped on 52.7% in FY2015.

Valuation


Alkyl Amines Chemicals's trades at EV/EBITDA 8.4x and P/E 13.9x while industy averages are 10.5x and 26.1x. Alkyl Amines Chemicals's EV/(EBITDA-CAPEX) is 15.9x with the industry average at 4.7x.

Appendix 1: Peers in Commodity Chemicals


Below you can find Alkyl Amines Chemicals benchmarking vs. other companies in Commodity Chemicals 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 FY2011 FY2012 FY2013 FY2014 FY2015
Shree Hari Chemicals Export ($SHHARICH)-52.2%-2.5%-78.0%299.5%
Jindal Poly Films ($JINDPOLBBPH)-66.5%-17.2%-6.3%131.7%
Bodal Chemicals ($BODALCHEM)-51.3%5.4%-12.6%80.0%
Kanoria Chemicals & Industries ($KANORICHEM)-22.3%-40.7%27.2%47.9%
Camphor & Allied Products ($CAMPHOR)-49.0%-6.7%7.2%42.7%
 
Median (35 companies)-42.0%15.5%10.9%10.6%3.1%
Alkyl Amines Chemicals ($ALKYLAMINE)22.1%27.0%21.9%6.8%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Shree Hari Chemicals Export ($SHHARICH)8.3%1.8%-19.4%29.4%
Chemfab Alkalis ($CHEMFALKAL)19.0%22.3%32.9%24.2%19.8%
Aditya Birla Chemicals (India) ($ABCIL)33.6%26.8%27.1%23.6%21.9%
Bodal Chemicals ($BODALCHEM)10.6%1.8%5.6%20.4%
Iol Chemicals & Pharmaceuticals ($IOLCP)17.4%14.6%18.5%17.0%
 
Median (31 companies)12.1%10.9%8.3%8.5%9.4%
Alkyl Amines Chemicals ($ALKYLAMINE)13.3%15.9%16.0%19.0%18.3%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Chemfab Alkalis ($CHEMFALKAL)5.1%2.2%15.8%55.6%
Aditya Birla Chemicals (India) ($ABCIL)5.9%136.9%24.2%30.8%15.0%
Jindal Poly Films ($JINDPOLBBPH)2.9%6.9%2.1%27.5%
Polyplex Corporation ($POLYPLEX)6.0%10.7%41.3%19.2%
Kanoria Chemicals & Industries ($KANORICHEM)12.9%25.1%6.0%13.4%
 
Median (19 companies)5.6%5.3%7.0%5.4%10.4%
Alkyl Amines Chemicals ($ALKYLAMINE)8.0%5.1%6.6%5.9%8.6%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Riddhi Siddhi Gluco Biols ($RIDDHI)-0.2%-1.3%-0.6%61.1%
Bodal Chemicals ($BODALCHEM)-1.3%3.3%39.0%
Elantas Beck India ($ELANTAS)17.5%20.4%33.9%31.0%
Aarti Industries ($AARTIIND)13.1%15.9%19.1%17.2%17.9%
Camphor & Allied Products ($CAMPHOR)10.3%5.7%15.5%17.0%
 
Median (59 companies)10.7%9.0%9.5%8.9%11.6%
Alkyl Amines Chemicals ($ALKYLAMINE)10.3%16.0%18.7%25.0%23.7%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
India Glycols ($INDIAGLYCO)8.2x4.8x3.7x8.5x
Godrej Industries ($GODREJIND)6.8x9.9x5.7x7.9x
Polyplex Corporation ($POLYPLEX)0.6x0.9x6.8x7.1x
Link Pharma Chem ($LINKPH)71.1x3.4x4.1x6.2x
Refnol Resins & Chemicals ($REFNOL)4.1x5.6x0.0x
 
Median (41 companies)2.4x2.6x3.2x0.8x0.0x
Alkyl Amines Chemicals ($ALKYLAMINE)3.8x2.6x2.4x1.6x1.3x