Alicon Castalloy reports 208% CAPEX growth and 34.0% Revenue growth
30-04-2015 • About Alicon Castalloy (
$ALICON) • By InTwits
Alicon Castalloy reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alicon Castalloy has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 853 in FY2015, 277 in FY2014, 195 in FY2013, 395 in FY2012, 314 in FY2011
- The company has highly profitable business model: ROIC is at 16.7%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alicon Castalloy ($ALICON) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,187 | 4,687 | 5,246 | 5,325 | 7,136 | 34.0% |
| EBITDA | 402 | 457 | 463 | 534 | 709 | 32.9% |
| Net Income | 155 | 144 | 169 | 192 | 198 | 3.6% |
Balance Sheet
|
|---|
| Cash | 61 | 89 | 69 | 60 | 96 | 61.3% |
| Short Term Debt | 488 | 890 | 997 | 1,026 | 1,350 | 31.6% |
| Long Term Debt | 350 | 236 | 53 | 117 | 373 | 219.4% |
Cash flow
|
|---|
| Capex | 314 | 395 | 195 | 277 | 853 | 207.6% |
Ratios
|
|---|
| Revenue growth | -61.4% | 47.1% | 11.9% | 1.5% | 34.0% | |
| EBITDA growth | | 13.7% | 1.2% | 15.3% | 32.9% | |
| EBITDA Margin | 12.6% | 9.8% | 8.8% | 10.0% | 9.9% | -0.1% |
| Net Income Margin | 4.9% | 3.1% | 3.2% | 3.6% | 2.8% | -0.8% |
| CAPEX, % of revenue | 9.8% | 8.4% | 3.7% | 5.2% | 12.0% | 6.7% |
| ROIC | | 16.4% | 13.0% | 14.8% | 16.7% | 1.9% |
| ROE | | 20.2% | 20.0% | 19.4% | 16.9% | -2.5% |
| Net Debt/EBITDA | 1.9x | 2.3x | 2.1x | 2.0x | 2.3x | 0.3x |
Revenue and profitability
The company's Revenue surged on 34.0% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign decreased slightly on 0.82 pp from 3.6% to 2.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Alicon Castalloy's CAPEX/Revenue was 12.0% in FY2015. CAPEX/Revenue increased on 3.5 pp from 8.4% in FY2012 to 12.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 7.0%.Alicon Castalloy has spent a lot to CAPEX (120% of EBITDA) to fuel its growth.
Return on investment
The company operates at good ROIC (16.70%) and ROE (16.93%). ROIC increased slightly on 1.9 pp from 14.8% to 16.7% in FY2015. ROE decreased on 2.5 pp from 19.4% to 16.9% in FY2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 2.0x to 2.3x in FY2015. Debt jumped on 50.8% in FY2015 while cash surged on 61.3% in FY2015.
Valuation
Alicon Castalloy's trades at EV/EBITDA 6.5x and P/E 15.2x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Aluminium
Below you can find Alicon Castalloy benchmarking vs. other companies in Aluminium 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bothra Metals & Alloys ($BMAL) | -67.0% | 12.1% | 57.0% | 27.3% | |
| Gujarat Foils ($GUJFOIL) | -61.0% | 16.7% | 31.4% | 25.2% | |
| Hindalco Industries ($HINDALCO) | 18.6% | 12.7% | -1.0% | 9.0% | |
| Pg Foils ($PGFOILQ) | -46.6% | 36.1% | -4.3% | 2.6% | |
| |
|---|
| Median (4 companies) | -53.8% | 14.7% | 15.2% | 17.1% | |
|---|
| Alicon Castalloy ($ALICON) | | 47.1% | 11.9% | 1.5% | 34.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat Foils ($GUJFOIL) | 10.1% | | 12.3% | 11.7% | |
| Hindalco Industries ($HINDALCO) | 11.0% | 10.9% | 10.3% | 9.3% | |
| Bothra Metals & Alloys ($BMAL) | 6.9% | 6.5% | 5.1% | 3.6% | |
| Pg Foils ($PGFOILQ) | 8.7% | 3.7% | 0.7% | 0.4% | |
| |
|---|
| Median (4 companies) | 9.4% | 6.5% | 7.7% | 6.5% | |
|---|
| Alicon Castalloy ($ALICON) | 12.6% | 9.8% | 8.8% | 10.0% | 9.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindalco Industries ($HINDALCO) | 11.0% | 15.5% | 14.8% | 10.8% | |
| |
|---|
| Median (1 company) | 9.0% | 5.2% | 14.8% | 10.8% | |
|---|
| Alicon Castalloy ($ALICON) | 9.8% | 8.4% | 3.7% | 5.2% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindalco Industries ($HINDALCO) | 8.7% | 8.6% | 6.2% | 4.6% | |
| Tentiwal Wire Products ($TWPL) | 12.7% | 12.5% | 12.6% | | |
| Sacheta Metals ($SACHEMT) | -2.7% | -3.1% | | | |
| Bothra Metals & Alloys ($BMAL) | 21.4% | 15.2% | 13.8% | | |
| Gujarat Foils ($GUJFOIL) | 9.6% | | | | |
| |
|---|
| Median (6 companies) | 9.2% | 8.6% | 9.4% | 4.6% | |
|---|
| Alicon Castalloy ($ALICON) | | 16.4% | 13.0% | 14.8% | 16.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindalco Industries ($HINDALCO) | 3.5x | 4.3x | 6.6x | 7.5x | |
| Sacheta Metals ($SACHEMT) | 12.7x | 14.3x | 0.0x | 0.0x | |
| Tentiwal Wire Products ($TWPL) | 5.8x | 4.9x | 5.2x | 0.0x | |
| Bothra Metals & Alloys ($BMAL) | 2.2x | 4.1x | 3.1x | 0.0x | |
| Gujarat Foils ($GUJFOIL) | 5.0x | | 3.7x | 0.0x | |
| |
|---|
| Median (6 companies) | 4.4x | 4.9x | 4.5x | 0.0x | |
|---|
| Alicon Castalloy ($ALICON) | 1.9x | 2.3x | 2.1x | 2.0x | 2.3x |
