Coromandel International revenue jumped on 13.4% in 2015 while EBITDA Margin decreased slightly on 1.2 pp from 14.0% to 12.8%
30-04-2015 • About Coromandel International (
$COROMANDEL) • By InTwits
Coromandel International reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.8% in FY2015, 14.0% in FY2014, 16.3% in FY2013, 10.8% in FY2012, 34.1% in FY2011
- The company has highly profitable business model: ROIC is at 20.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.0x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Coromandel International ($COROMANDEL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32,679 | 97,892 | 59,990 | 71,269 | 80,792 | 13.4% |
| EBITDA | 11,139 | 10,544 | 9,758 | 9,982 | 10,380 | 4.0% |
| Net Income | 6,937 | 6,388 | 4,320 | 3,565 | 4,018 | 12.7% |
Balance Sheet
|
|---|
| Cash | 3,539 | 9,847 | 2,109 | 4,195 | 2,440 | -41.8% |
| Short Term Debt | 12,245 | 22,897 | 18,490 | 15,760 | 22,210 | 40.9% |
| Long Term Debt | 3,233 | 5,863 | 10,969 | 2,669 | 668 | -75.0% |
Cash flow
|
|---|
| Capex | 1,923 | | 2,627 | 1,135 | 948 | -16.5% |
Ratios
|
|---|
| Revenue growth | -65.5% | 199.6% | -38.7% | 18.8% | 13.4% | |
| EBITDA growth | 53.1% | -5.3% | -7.5% | 2.3% | 4.0% | |
| EBITDA Margin | 34.1% | 10.8% | 16.3% | 14.0% | 12.8% | -1.2% |
| Net Income Margin | 21.2% | 6.5% | 7.2% | 5.0% | 5.0% | -0.0% |
| CAPEX, % of revenue | 5.9% | | 4.4% | 1.6% | 1.2% | -0.4% |
| ROIC | 28.9% | 22.2% | 16.7% | 18.3% | 20.5% | 2.2% |
| ROE | 40.1% | 29.3% | 18.8% | 15.9% | 17.9% | 2.0% |
| Net Debt/EBITDA | 1.1x | 1.8x | 2.8x | 1.4x | 2.0x | 0.5x |
Revenue and profitability
Coromandel International's Revenue surged on 13.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 20.9% to 19.7% 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 1.2%. CAPEX/Revenue increased slightly1.2 pp from in FY2012 to 1.2% in FY2015. It's average CAPEX/Revenue for the last three years was 2.4%.
Return on investment
The company operates at high and attractive ROIC (20.50%) while ROE is a bit lower (17.92%). ROIC increased on 2.2 pp from 18.3% to 20.5% in FY2015. ROE increased slightly on 2.0 pp from 15.9% to 17.9% in FY2015.
Leverage (Debt)
Debt level is 2.0x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.4x to 2.0x in FY2015. Debt jumped on 24.1% in FY2015 while cash dropped on 41.8% in FY2015.
Valuation
The company's trades at EV/EBITDA 8.4x and P/E 16.6x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Fertilizers
Below you can find Coromandel International benchmarking vs. other companies in Fertilizers 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | | 32.6% | 8.8% | 8.6% | 9.3% |
| Basant Agro Tech (India) ($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 ($KHAICHEM) | 13.7% | 41.2% | -29.1% | -14.7% | |
| |
|---|
| Median (5 companies) | -24.3% | 41.2% | 8.8% | -13.4% | 9.3% |
|---|
| Coromandel International ($COROMANDEL) | | 199.6% | -38.7% | 18.8% | 13.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 25.4% | 22.4% | 13.6% | 12.1% | |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 15.0% | 13.2% | 10.7% | 10.6% | 8.2% |
| 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 ($RAMAPHO) | 12.8% | 11.2% | 7.7% | 0.2% | |
| |
|---|
| Median (5 companies) | 15.0% | 11.2% | 9.4% | 9.2% | 8.2% |
|---|
| Coromandel International ($COROMANDEL) | 34.1% | 10.8% | 16.3% | 14.0% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 9.8% | 7.7% | 6.6% | 5.6% | |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 1.9% | 1.6% | 1.2% | 1.7% | 2.0% |
| |
|---|
| Median (2 companies) | 3.9% | 1.8% | 4.3% | 3.6% | 2.0% |
|---|
| Coromandel International ($COROMANDEL) | 5.9% | | 4.4% | 1.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 32.9% | 27.1% | 14.2% | 9.2% | |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 12.0% | 13.6% | 9.3% | 9.2% | 8.6% |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 25.7% | 20.1% | 5.9% | 7.3% | |
| Kothari Industrial Corporation ($KOTIC) | | | -5.5% | | |
| Teesta Agro Industries ($TEEAI) | 1.7% | | | | |
| |
|---|
| Median (7 companies) | 12.8% | 20.1% | 11.1% | 9.2% | 8.6% |
|---|
| Coromandel International ($COROMANDEL) | 28.9% | 22.2% | 16.7% | 18.3% | 20.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 2.1x | 2.4x | 9.0x | 5.3x | |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 2.5x | 3.3x | 5.4x | 4.5x | 4.5x |
| Gujarat State Fertilizers & Chemicals ($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) | 1.6x | 2.4x | 3.8x | 0.6x | 4.5x |
|---|
| Coromandel International ($COROMANDEL) | 1.1x | 1.8x | 2.8x | 1.4x | 2.0x |
