Rallis India EBITDA increased on 6.0% in 2015 and EBITDA Margin showed almost no change
22-04-2015 • About Rallis India (
$RALLIS) • By InTwits
Rallis India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rallis India has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 605 in FY2015, 591 in FY2014, 465 in FY2013, 570 in FY2012, 1,314 in FY2011
- The company has highly profitable business model: ROIC is at 25.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rallis India ($RALLIS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10,862 | 12,749 | 14,582 | 17,466 | 18,218 | 4.3% |
| EBITDA | 1,972 | 2,065 | 2,140 | 2,650 | 2,808 | 6.0% |
| Net Income | 1,260 | 992 | 1,190 | 1,519 | 1,572 | 3.5% |
Balance Sheet
|
|---|
| Cash | 146 | 112 | 258 | 89 | 72 | -19.2% |
| Short Term Debt | | 650 | 433 | 484 | 837 | 73.1% |
| Long Term Debt | 1,172 | 856 | 107 | 261 | 268 | 2.6% |
Cash flow
|
|---|
| Capex | 1,314 | 570 | 465 | 591 | 605 | 2.5% |
Ratios
|
|---|
| Revenue growth | -52.0% | 17.4% | 14.4% | 19.8% | 4.3% | |
| EBITDA growth | 22.0% | 4.7% | 3.6% | 23.8% | 6.0% | |
| EBITDA Margin | 18.2% | 16.2% | 14.7% | 15.2% | 15.4% | 0.2% |
| Net Income Margin | 11.6% | 7.8% | 8.2% | 8.7% | 8.6% | -0.1% |
| CAPEX, % of revenue | 12.1% | 4.5% | 3.2% | 3.4% | 3.3% | -0.1% |
| ROIC | 32.6% | 26.3% | 25.3% | 28.3% | 25.4% | -3.0% |
| ROE | 27.1% | 18.8% | 20.3% | 22.7% | 20.5% | -2.2% |
| Net Debt/EBITDA | 0.5x | 0.7x | 0.1x | 0.2x | 0.4x | 0.1x |
Revenue and profitability
Rallis India's Revenue increased on 4.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.0 pp from 7.4% to 3.4% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Rallis India's CAPEX/Revenue was 3.3% in FY2015. CAPEX/Revenue decreased slightly on 1.1 pp from 4.5% in FY2012 to 3.3% in FY2015. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at high and attractive ROIC (25.37%) and ROE (20.52%). ROIC decreased on 3.0 pp from 28.3% to 25.4% in FY2015. ROE decreased on 2.2 pp from 22.7% to 20.5% in FY2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 0.2x to 0.4x in FY2015. Debt surged on 48.4% in FY2015 while cash dropped on 19.2% in FY2015.
Valuation
The company's trades at EV/EBITDA 15.7x and P/E 27.4x while industy averages are 10.5x and 26.1x. Rallis India's EV/(EBITDA-CAPEX) is 20.0x with the industry average at 4.7x.
Management team
Veeramani Shankar is a the company's CEO. Veeramani Shankar has spent 11 years at the company.
Appendix 1: Peers in Agrochemicals
Below we provide Rallis India benchmarking against other companies in Agrochemicals 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 |
|---|
| Insecticides (India) ($INSECTICID) | -59.4% | 15.9% | 18.2% | 40.1% | |
| P.I.Industries ($PIIND) | -69.9% | 22.2% | 31.0% | 38.9% | |
| Monsanto India ($MONSANTO) | -46.9% | 2.9% | 16.8% | 33.6% | |
| Astec Lifesciences Limited ($ASTEC) | -65.8% | 2.6% | 55.7% | 18.4% | |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | -76.4% | 15.2% | 113.6% | 18.4% | |
| |
|---|
| Median (7 companies) | -59.4% | 15.2% | 21.7% | 18.4% | |
|---|
| Rallis India ($RALLIS) | | 17.4% | 14.4% | 19.8% | 4.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 15.5% | 17.0% | 15.8% | 18.4% | |
| Astec Lifesciences Limited ($ASTEC) | 14.5% | 15.5% | 16.7% | 17.1% | |
| Insecticides (India) ($INSECTICID) | 9.9% | 11.0% | 11.3% | 10.6% | |
| Excel Industries ($EXCELINDUS) | 12.6% | 8.5% | 10.9% | 9.8% | |
| Monsanto India ($MONSANTO) | 18.3% | 15.1% | 16.4% | 7.3% | |
| |
|---|
| Median (6 companies) | 12.6% | 11.0% | 11.3% | 10.2% | |
|---|
| Rallis India ($RALLIS) | 18.2% | 16.2% | 14.7% | 15.2% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Astec Lifesciences Limited ($ASTEC) | 32.6% | 41.7% | 14.9% | 9.2% | |
| Excel Industries ($EXCELINDUS) | 3.7% | 7.6% | 5.7% | 8.5% | |
| P.I.Industries ($PIIND) | 13.5% | 13.4% | 13.2% | 4.0% | |
| Insecticides (India) ($INSECTICID) | 13.3% | 10.7% | 8.1% | 3.9% | |
| Monsanto India ($MONSANTO) | 3.3% | 3.3% | 2.0% | 1.9% | |
| |
|---|
| Median (5 companies) | 4.0% | 9.1% | 8.1% | 4.0% | |
|---|
| Rallis India ($RALLIS) | 12.1% | 4.5% | 3.2% | 3.4% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 22.4% | 23.9% | 22.5% | 31.3% | |
| Insecticides (India) ($INSECTICID) | 23.5% | 19.2% | 15.6% | 15.7% | |
| Excel Industries ($EXCELINDUS) | 13.8% | 8.5% | 14.2% | 11.9% | |
| Astec Lifesciences Limited ($ASTEC) | 7.2% | 5.6% | 9.7% | 10.7% | |
| Monsanto India ($MONSANTO) | 15.1% | 12.4% | 15.3% | 7.8% | |
| |
|---|
| Median (9 companies) | 13.8% | 6.4% | 9.7% | 11.9% | |
|---|
| Rallis India ($RALLIS) | 32.6% | 26.3% | 25.3% | 28.3% | 25.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Insecticides (India) ($INSECTICID) | 0.8x | 2.7x | 3.0x | 2.7x | |
| Excel Industries ($EXCELINDUS) | 1.4x | 2.7x | 1.6x | 2.3x | |
| Astec Lifesciences Limited ($ASTEC) | 2.7x | 4.1x | 2.4x | 2.3x | |
| P.I.Industries ($PIIND) | 2.1x | 1.6x | 1.2x | 0.3x | |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 13.9x | 163.2x | 3.6x | 0.0x | |
| |
|---|
| Median (7 companies) | 1.6x | 3.4x | 3.0x | 0.3x | |
|---|
| Rallis India ($RALLIS) | 0.5x | 0.7x | 0.1x | 0.2x | 0.4x |
