Jubilant Industries EBITDA Margin jumped15.3 pp from to 15.3% in 2015

30-04-2015 • About Jubilant Industries ($JUBLINDS) • By InTwits

Jubilant Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Jubilant Industries is a company in decline: FY2015 revenue growth was -6.7%, 5 years revenue CAGR was -3.9%
It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.2x

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Jubilant Industries ($JUBLINDS) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	5,371	9,949	9,976	9,195	8,582	-6.7%
EBITDA	531	180	161		1,313
Net Income	286	-567	-350	249	-1,178	-572.8%
Balance Sheet
Cash	62	112	366		227
Short Term Debt	42	716	257		1,934
Long Term Debt	0	1,575	1,963		1,625
Cash flow
Capex	190	170			225
Ratios
Revenue growth	-48.6%	85.2%	0.3%	-7.8%	-6.7%
EBITDA growth		-66.2%	-10.6%
EBITDA Margin	9.9%	1.8%	1.6%	0.0%	15.3%	15.3%
Net Income Margin	5.3%	-5.7%	-3.5%	2.7%	-13.7%	-16.4%
CAPEX, % of revenue	3.5%	1.7%			2.6%	2.6%
ROIC		-3.1%	-3.9%			0.0%
ROE		-24.6%	-21.4%			0.0%
Net Debt/EBITDA	-0.0x	12.1x	11.5x		2.5x	2.5x

Revenue and profitability

The company's Revenue decreased on 6.7% in FY2015.

Net Income marign dropped on 16.4 pp from 2.7% to -13.7% in FY2015.

Capital expenditures (CAPEX) and working capital investments

In FY2015 the company had CAPEX/Revenue of 2.6%. The company's CAPEX/Revenue increased slightly on 0.91 pp from 1.7% in FY2012 to 2.6% in FY2015.

Leverage (Debt)

Debt level is 2.5x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA jumped2.5x from to 2.5x in FY2015. Debt surged while cash jumped.

Appendix 1: Peers in Agrochemicals

Below we provide Jubilant Industries 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 ($MONSANTO)	-46.9%	2.9%	16.8%	33.6%
Rallis India ($RALLIS)		17.4%	14.4%	19.8%	4.3%
Astec Lifesciences Limited ($ASTEC)	-65.8%	2.6%	55.7%	18.4%
Median (7 companies)	-62.6%	15.2%	21.7%	19.8%	4.3%
Jubilant Industries ($JUBLINDS)		85.2%	0.3%	-7.8%	-6.7%

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%
Rallis India ($RALLIS)	18.2%	16.2%	14.7%	15.2%	15.4%
Insecticides (India) ($INSECTICID)	9.9%	11.0%	11.3%	10.6%
Excel Industries ($EXCELINDUS)	12.6%	8.5%	10.9%	9.8%
Median (7 companies)	14.5%	15.1%	14.7%	10.6%	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%
Rallis India ($RALLIS)	12.1%	4.5%	3.2%	3.4%	3.3%
Median (6 companies)	12.1%	9.1%	6.9%	4.0%	3.3%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
P.I.Industries ($PIIND)	22.4%	23.9%	22.5%	31.3%
Rallis India ($RALLIS)	32.6%	26.3%	25.3%	28.3%	25.4%
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 ($ASTEC)	7.2%	5.6%	9.7%	10.7%
Median (9 companies)	14.4%	8.5%	14.2%	13.8%	25.4%
Jubilant Industries ($JUBLINDS)		-3.1%	-3.9%

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
Rallis India ($RALLIS)	0.5x	0.7x	0.1x	0.2x	0.4x
Median (8 companies)	1.6x	2.7x	2.4x	0.3x	0.4x

Jubilant Industries stock price chart

Jubilant Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	10,453	5,371	9,949
EBITDA	0.000	531.1	179.8
Net income	0.000	286.1	-567.000
CAPEX	0.000	190.3	169.8
Debt	0.000	42.330	2,291
Cash	0.000	62.420	111.9

About Jubilant Industries

Jubilant Industries Limited manufactures and sells agricultural products, and performance polymers in India and internationally. It offers crop nutrition products, such as fertilizers and fertilizer related products, such as single super phosphate, bentonite sulphur, sulphur 90% DP, NPK (20:20:20), and organic manure under the Ramban brand name; crop growth regulators, including chlormequat chloride, triacontanol granules, and ethaphone; crop protection products comprising fungicides, insecticides, and herbicides; and industrial chemicals consisting of sulphuric acid and sodium silico fluoride. The company also provides performance polymer products, such as consumer products, including woodworking adhesives, wood finishes, footwear adhesives, and epoxy sealants; food polymers, which include solid poly vinyl acetate, a raw material used for making gum base for chewing gum and bubble gum; and latex products comprising VP latex used in dipping of tire cord and conveyor belt fabric, SB latex for use in above tire cord fabric, and NBR latex used in automotive gasketting binding applications. In addition, it is involved in manufacturing and bottling Indian made foreign liquor products; and running and maintaining hypermarket cum malls. The company was formerly known as Hitech Shiksha Limited and changed its name to Jubilant Industries Limited in June 2010. Jubilant Industries Limited was incorporated in 2007 and is based in Noida, India.