Tata Metaliks reports 1,052% Net Income growth while 1.3% Revenue decline
29-04-2015 • About Tata Metaliks (
$TATAMETALI) • By InTwits
Tata Metaliks reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 14.6% in FY2015 vs. 6.8% in FY2014 vs. 3.2% in FY2011
- EBITDA Margin is quite volatile: 14.6% in FY2015, 6.8% in FY2014, 0.9% in FY2013, -9.6% in FY2012, 3.2% in FY2011
- Tata Metaliks has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 479 in FY2015, 199 in FY2014, 1,166 in FY2013, 554 in FY2012, 310 in FY2011
- The company has highly profitable business model: ROIC is at 57.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tata Metaliks ($TATAMETALI) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 13,187 | 12,262 | 9,927 | 14,359 | 14,176 | -1.3% |
| EBITDA | 427 | -1,174 | 86 | 970 | 2,074 | 113.9% |
| Net Income | 6 | -1,135 | -871 | 95 | 1,091 | 1,052.0% |
Balance Sheet
|
|---|
| Cash | 39 | 808 | 78 | 200 | 31 | -84.7% |
| Short Term Debt | 2,738 | 4,107 | 2,543 | 1,404 | 1,572 | 12.0% |
| Long Term Debt | 1,901 | 1,306 | 1,810 | 1,251 | 1,222 | -2.3% |
Cash flow
|
|---|
| Capex | 310 | 554 | 1,166 | 199 | 479 | 140.4% |
Ratios
|
|---|
| Revenue growth | -20.5% | -7.0% | -19.0% | 44.6% | -1.3% | |
| EBITDA growth | -31.1% | -375.2% | -107.4% | 1,023.5% | 113.9% | |
| EBITDA Margin | 3.2% | -9.6% | 0.9% | 6.8% | 14.6% | 7.9% |
| Net Income Margin | 0.0% | -9.3% | -8.8% | 0.7% | 7.7% | 7.0% |
| CAPEX, % of revenue | 2.4% | 4.5% | 11.7% | 1.4% | 3.4% | 2.0% |
| ROIC | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% | 37.5% |
| ROE | 0.8% | | | | | 0.0% |
| Net Debt/EBITDA | 10.8x | | 49.5x | 2.5x | 1.3x | -1.2x |
Revenue and profitability
The company's Revenue decreased slightly on 1.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign increased on 7.0 pp from 0.66% to 7.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.4% in FY2015. CAPEX/Revenue decreased slightly on 1.1 pp from 4.5% in FY2012 to 3.4% in FY2015. Average CAPEX/Revenue for the last three years was 5.5%.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 2.5x to 1.3x in FY2015. Debt increased on 5.2% in FY2015 while cash dropped on 84.7% in FY2015.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below we provide Tata Metaliks benchmarking against other companies in Iron & Steel/Interm.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 |
|---|
| Inducto Steel ($INDCTST) | | | 54.5% | 150.2% | |
| Kamdhenu Ispat ($KIL) | -65.5% | 25.7% | 13.7% | 68.3% | |
| Metkore Alloys & Industries ($METKORE) | -49.1% | 43.7% | -10.9% | 53.4% | |
| Visa Steel ($VISASTEEL) | -12.5% | 3.3% | -24.1% | 42.0% | |
| Jsw Steel ($JSWSTEEL) | -69.8% | 42.6% | 11.2% | 34.0% | |
| |
|---|
| Median (31 companies) | -34.1% | 12.5% | 8.8% | 2.8% | 2.1% |
|---|
| Tata Metaliks ($TATAMETALI) | | -7.0% | -19.0% | 44.6% | -1.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 48.3% | 37.5% | 30.5% | 28.1% | |
| Bhushan Steel ($BHUSANSTL) | 29.0% | 31.2% | 32.3% | 28.1% | |
| Sarda Energy & Minerals ($SARDAEN) | 15.2% | 16.3% | 21.5% | 21.3% | |
| Jsw Steel ($JSWSTEEL) | 20.2% | 17.8% | 17.1% | 17.9% | |
| Jai Corp ($JAICORPLTD) | 18.4% | 14.1% | 16.3% | 16.0% | |
| |
|---|
| Median (28 companies) | 13.4% | 9.5% | 9.2% | 7.4% | 10.9% |
|---|
| Tata Metaliks ($TATAMETALI) | 3.2% | -9.6% | 0.9% | 6.8% | 14.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 64.7% | 34.2% | 47.6% | 69.6% | |
| Bhushan Steel ($BHUSANSTL) | 81.1% | 47.2% | 44.0% | 50.4% | |
| Jayaswal Neco Industries ($JAYNECOIND) | 27.9% | 20.4% | 44.0% | 31.1% | |
| Surana Industries ($SURANAIND) | | 41.3% | 54.8% | 21.5% | |
| Steel Authority Of India ($SAIL) | 25.3% | 20.9% | 20.7% | 19.3% | |
| |
|---|
| Median (20 companies) | 12.3% | 9.7% | 10.4% | 7.7% | 4.3% |
|---|
| Tata Metaliks ($TATAMETALI) | 2.4% | 4.5% | 11.7% | 1.4% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nova Iron & Steel ($NOVIS) | | | | 15.4% | |
| Kirloskar Ferrous Industries ($KIRLFER) | 20.0% | 19.1% | 16.8% | 12.4% | 14.7% |
| Pennar Industries ($PENIND) | 31.6% | 26.8% | 18.4% | 12.3% | |
| Jsw Steel ($JSWSTEEL) | 9.7% | 11.0% | 10.3% | 12.1% | |
| Tata Steel ($TATASTEEL) | 12.8% | 7.6% | 6.2% | 8.9% | |
| |
|---|
| Median (40 companies) | 9.6% | 7.2% | 5.7% | 5.5% | 14.7% |
|---|
| Tata Metaliks ($TATAMETALI) | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jai Balaji Industries ($JAIBALAJI) | 5.5x | | | 89.7x | |
| Visa Steel ($VISASTEEL) | 6.9x | 20.1x | | 24.4x | |
| Ismt ($ISMTLTD) | 4.4x | 5.3x | 9.8x | 19.9x | |
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | |
| Bhushan Steel ($BHUSANSTL) | 8.1x | 6.3x | 8.6x | 12.9x | |
| |
|---|
| Median (29 companies) | 3.6x | 4.5x | 4.3x | 3.4x | 0.8x |
|---|
| Tata Metaliks ($TATAMETALI) | 10.8x | | 49.5x | 2.5x | 1.3x |
