Agro Tech Foods reports 13.4% Net Income decline and 0.78% Revenue decline
18-04-2015 • About Agro Tech Foods (
$ATFL) • By InTwits
Agro Tech Foods reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Agro Tech Foods has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 261 in FY2015, 79.9 in FY2014, 252 in FY2013, 729 in FY2012, 643 in FY2011
- The company has highly profitable business model: ROIC is at 13.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Agro Tech Foods ($ATFL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,187 | 7,021 | 7,872 | 7,622 | 7,562 | -0.8% |
| EBITDA | 282 | 532 | 650 | 699 | 608 | -13.0% |
| Net Income | 318 | 363 | 419 | 426 | 369 | -13.4% |
Balance Sheet
|
|---|
| Cash | 445 | 407 | 106 | 59 | 91 | 55.2% |
| Short Term Debt | 0 | 0 | 0 | 150 | 259 | 72.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 304 | 290 | 472 | 480 | 424 | -11.8% |
Ratios
|
|---|
| Revenue growth | -19.1% | -2.3% | 12.1% | -3.2% | -0.8% | |
| EBITDA growth | 7.9% | 88.5% | 22.1% | 7.5% | -13.0% | |
| EBITDA Margin | 3.9% | 7.6% | 8.3% | 9.2% | 8.0% | -1.1% |
| Net Income Margin | 4.4% | 5.2% | 5.3% | 5.6% | 4.9% | -0.7% |
| CAPEX, % of revenue | 4.2% | 4.1% | 6.0% | 6.3% | 5.6% | -0.7% |
| ROIC | 13.7% | 24.0% | 25.3% | 21.2% | 13.9% | -7.2% |
| ROE | 19.4% | 18.8% | 18.5% | 16.2% | 12.4% | -3.8% |
| Net Debt/EBITDA | -1.6x | -0.8x | -0.2x | 0.1x | 0.3x | 0.1x |
Revenue and profitability
The company's Revenue decreased slightly on 0.78% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign decreased slightly on 0.71 pp from 5.6% to 4.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.6%. CAPEX/Revenue increased slightly on 1.5 pp from 4.1% in FY2012 to 5.6% in FY2015. Average CAPEX/Revenue for the last three years was 6.0%.Battling declining revenue Agro Tech Foods invested a large share of EBITDA (69.7%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROIC (13.94%) and ROE (12.38%). ROIC decreased on 7.2 pp from 21.2% to 13.9% in FY2015. ROE decreased on 3.8 pp from 16.2% to 12.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.4x. Net Debt / EBITDA jumped on 0.1x from 0.1x to 0.3x in FY2015. Debt surged on 72.4% in FY2015 while cash surged on 55.2% in FY2015.
Appendix 1: Peers in Other Agricultural Products
Below we provide Agro Tech Foods benchmarking against other companies in Other Agricultural Products 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Unique Organics ($UNIQUEO) | -74.0% | 102.1% | 35.2% | 51.2% | |
| Kaveri Seed Company ($KSCL) | -82.8% | 59.4% | 91.2% | 42.0% | |
| Freshtrop Fruits ($FRSHTRP) | -57.2% | 14.7% | 43.8% | 29.1% | |
| Olympic Oil Industries ($OLYOI) | -98.4% | 1,600.6% | 160.6% | 21.1% | |
| Kohinoor Foods ($KOHINOOR) | -34.9% | 5.4% | 13.4% | 16.2% | |
| |
|---|
| Median (9 companies) | -58.6% | 51.2% | 35.2% | 16.2% | |
|---|
| Agro Tech Foods ($ATFL) | | -2.3% | 12.1% | -3.2% | -0.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avt Natural Products ($AVTNPL) | 17.3% | 37.6% | 30.8% | 25.9% | |
| Kaveri Seed Company ($KSCL) | 23.0% | 20.7% | 19.6% | 21.9% | |
| Kohinoor Foods ($KOHINOOR) | 12.7% | 4.7% | 10.9% | 11.2% | |
| Freshtrop Fruits ($FRSHTRP) | 7.8% | 9.3% | 8.9% | 9.8% | |
| Vikas Granaries ($VIKASGRAN) | 30.4% | 10.6% | 14.2% | 9.8% | |
| |
|---|
| Median (7 companies) | 10.3% | 4.7% | 8.9% | 9.8% | |
|---|
| Agro Tech Foods ($ATFL) | 3.9% | 7.6% | 8.3% | 9.2% | 8.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avt Natural Products ($AVTNPL) | 2.0% | 2.3% | 5.0% | 3.3% | |
| Kaveri Seed Company ($KSCL) | 5.4% | 2.9% | 5.9% | 2.5% | |
| Kohinoor Foods ($KOHINOOR) | 3.7% | 1.6% | 1.5% | 1.0% | |
| |
|---|
| Median (3 companies) | 3.2% | 1.0% | 2.9% | 2.5% | |
|---|
| Agro Tech Foods ($ATFL) | 4.2% | 4.1% | 6.0% | 6.3% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaveri Seed Company ($KSCL) | 21.0% | 27.5% | 41.1% | 46.8% | |
| Avt Natural Products ($AVTNPL) | 19.1% | 58.2% | 41.5% | 32.8% | |
| Kohinoor Foods ($KOHINOOR) | 11.2% | 3.1% | 8.8% | 10.3% | |
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Himalya International ($HIMIN) | 12.8% | 9.4% | 10.2% | | |
| |
|---|
| Median (13 companies) | 11.2% | 8.3% | 8.9% | 21.5% | 0.0% |
|---|
| Agro Tech Foods ($ATFL) | 13.7% | 24.0% | 25.3% | 21.2% | 13.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kohinoor Foods ($KOHINOOR) | 7.7x | 19.2x | 7.8x | 6.1x | |
| Freshtrop Fruits ($FRSHTRP) | 7.0x | 3.3x | 2.5x | 0.0x | |
| Himalya International ($HIMIN) | 3.3x | 4.5x | 2.9x | 0.0x | |
| Flex Foods ($FLEXFO) | 0.8x | 0.8x | 0.9x | 0.0x | |
| Unique Organics ($UNIQUEO) | | | 0.0x | 0.0x | |
| |
|---|
| Median (10 companies) | 3.1x | 3.6x | 2.4x | 0.0x | |
|---|
| Agro Tech Foods ($ATFL) | -1.6x | -0.8x | -0.2x | 0.1x | 0.3x |
