Chambal Fertilisers & Chemicals Debt dropped on 14.7% in 2015 while Net Debt / EBITDA increased slightly on 0.014x from 4.5x to 4.5x
30-04-2015 • About Chambal Fertilisers & Chemicals (
$CHAMBLFERT) • By InTwits
Chambal Fertilisers & Chemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 8.2% in FY2015 vs. 10.6% in FY2014 vs. 15.0% in FY2011
- Chambal Fertilisers & Chemicals has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 1.4%.
- CAPEX is quite volatile: 1,660 in FY2015, 1,084 in FY2014, 864 in FY2013, 464 in FY2012, 675 in FY2011
- The company has business model with low profitability: ROIC is at 8.6%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chambal Fertilisers & Chemicals ($CHAMBLFERT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 56,857 | 75,382 | 82,020 | 89,106 | 97,377 | 9.3% |
| EBITDA | 8,538 | 9,920 | 8,769 | 9,481 | 7,981 | -15.8% |
| Net Income | 2,406 | 1,583 | 2,385 | 2,441 | 2,946 | 20.7% |
Balance Sheet
|
|---|
| Cash | 3,059 | 2,218 | 2,343 | 1,831 | 1,911 | 4.4% |
| Short Term Debt | 11,056 | 22,884 | 38,764 | 34,370 | 30,178 | -12.2% |
| Long Term Debt | 13,090 | 11,860 | 11,277 | 10,194 | 7,819 | -23.3% |
Cash flow
|
|---|
| Capex | 1,098 | 1,242 | 1,003 | 1,508 | 1,914 | 26.9% |
Ratios
|
|---|
| Revenue growth | -52.6% | 32.6% | 8.8% | 8.6% | 9.3% | |
| EBITDA growth | 7.7% | 16.2% | -11.6% | 8.1% | -15.8% | |
| EBITDA Margin | 15.0% | 13.2% | 10.7% | 10.6% | 8.2% | -2.4% |
| Net Income Margin | 4.2% | 2.1% | 2.9% | 2.7% | 3.0% | 0.3% |
| CAPEX, % of revenue | 1.9% | 1.6% | 1.2% | 1.7% | 2.0% | 0.3% |
| ROIC | 12.0% | 13.6% | 9.3% | 9.2% | 8.6% | -0.7% |
| ROE | 16.0% | 9.7% | 13.4% | 12.5% | 13.7% | 1.2% |
| Net Debt/EBITDA | 2.5x | 3.3x | 5.4x | 4.5x | 4.5x | 0.0x |
Revenue and profitability
Chambal Fertilisers & Chemicals's Revenue increased on 9.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 10.3% to 13.4% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.0%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at good ROE (13.68%) while ROIC is low (8.56%). ROIC decreased slightly on 0.67 pp from 9.2% to 8.6% in FY2015. ROE increased slightly on 1.2 pp from 12.5% to 13.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is 4.8x. Net Debt / EBITDA increased slightly on 0.014x from 4.5x to 4.5x in FY2015. Debt dropped on 14.7% in FY2015 while cash increased on 4.4% in FY2015.
Appendix 1: Peers in Fertilizers
Below we provide Chambal Fertilisers & Chemicals benchmarking against other companies in Fertilizers 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 |
|---|
| Coromandel International ($COROMANDEL) | | 199.6% | -38.7% | 18.8% | 13.4% |
| Basant Agro Tech (India) ($BASANTGL) | -53.8% | 63.9% | 5.3% | 7.7% | |
| Gujarat State Fertilizers & Chemicals ($GSFC) | -23.1% | 11.5% | 17.9% | -13.4% | |
| Rama Phosphates ($RAMAPHO) | -25.6% | 56.4% | 11.4% | -13.9% | |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 13.7% | 41.2% | -29.1% | -14.7% | |
| |
|---|
| Median (5 companies) | -24.3% | 56.4% | 5.3% | -13.4% | 13.4% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | | 32.6% | 8.8% | 8.6% | 9.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel International ($COROMANDEL) | 34.1% | 10.8% | 16.3% | 14.0% | 12.8% |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 25.4% | 22.4% | 13.6% | 12.1% | |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 15.7% | 11.0% | 6.8% | 9.2% | |
| Basant Agro Tech (India) ($BASANTGL) | 9.5% | 8.7% | 9.4% | 8.6% | |
| Rama Phosphates ($RAMAPHO) | 12.8% | 11.2% | 7.7% | 0.2% | |
| |
|---|
| Median (5 companies) | 15.7% | 11.0% | 9.4% | 9.2% | 12.8% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 15.0% | 13.2% | 10.7% | 10.6% | 8.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 9.8% | 7.7% | 6.6% | 5.6% | |
| Coromandel International ($COROMANDEL) | 5.9% | | 4.4% | 1.6% | 1.2% |
| |
|---|
| Median (2 companies) | 5.9% | 4.1% | 4.4% | 3.6% | 1.2% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 1.9% | 1.6% | 1.2% | 1.7% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coromandel International ($COROMANDEL) | 28.9% | 22.2% | 16.7% | 18.3% | 20.5% |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 32.9% | 27.1% | 14.2% | 9.2% | |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 25.7% | 20.1% | 5.9% | 7.3% | |
| Kothari Industrial Corporation ($KOTIC) | | | -5.5% | | |
| Teesta Agro Industries ($TEEAI) | 1.7% | | | | |
| |
|---|
| Median (7 companies) | 25.7% | 22.2% | 13.6% | 9.2% | 20.5% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 12.0% | 13.6% | 9.3% | 9.2% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 2.1x | 2.4x | 9.0x | 5.3x | |
| Coromandel International ($COROMANDEL) | 1.1x | 1.8x | 2.8x | 1.4x | 2.0x |
| Gujarat State Fertilizers & Chemicals ($GSFC) | -0.2x | -0.2x | 1.6x | 0.6x | |
| Basant Agro Tech (India) ($BASANTGL) | 3.9x | 3.9x | 3.8x | 0.0x | |
| Rama Phosphates ($RAMAPHO) | 1.0x | 0.8x | 1.2x | 0.0x | |
| |
|---|
| Median (5 companies) | 1.0x | 1.8x | 2.8x | 0.6x | 2.0x |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 2.5x | 3.3x | 5.4x | 4.5x | 4.5x |
