Vtm EBITDA dropped on 41.0% in 2015 and EBITDA Margin decreased on 5.4 pp from 13.3% to 8.0%
30-04-2015 • About Vtm (
$VTMLTD) • By InTwits
Vtm reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 8.0% in FY2015, 13.3% in FY2014, 17.3% in FY2013, 11.7% in FY2012, 21.5% in FY2011.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vtm ($VTMLTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,304 | 1,166 | 1,432 | 1,687 | 1,666 | -1.2% |
| EBITDA | 280 | 137 | 248 | 225 | 133 | -41.0% |
| Net Income | 119 | 63 | 123 | 113 | 80 | -29.6% |
Balance Sheet
|
|---|
| Cash | 13 | 182 | 160 | 163 | | -100.0% |
| Short Term Debt | 52 | 0 | 0 | 2 | | -100.0% |
| Long Term Debt | 10 | 10 | 18 | 16 | | -100.0% |
Cash flow
|
|---|
| Capex | 217 | 24 | 134 | | | |
Ratios
|
|---|
| Revenue growth | -32.8% | -10.5% | 22.7% | 17.8% | -1.2% | |
| EBITDA growth | 148.7% | -51.2% | 81.7% | -9.3% | -41.0% | |
| EBITDA Margin | 21.5% | 11.7% | 17.3% | 13.3% | 8.0% | -5.4% |
| Net Income Margin | 9.1% | 5.4% | 8.6% | 6.7% | 4.8% | -1.9% |
| CAPEX, % of revenue | 16.6% | 2.0% | 9.3% | | | 0.0% |
| ROIC | 18.9% | 4.9% | 14.8% | 11.6% | | -11.6% |
| ROE | 13.6% | 6.7% | 12.2% | 10.3% | | -10.3% |
| Net Debt/EBITDA | 0.2x | -1.3x | -0.6x | -0.6x | 0.0x | 0.6x |
Revenue and profitability
Vtm's Revenue decreased slightly on 1.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.4 pp from 13.3% to 8.0% in FY2015.
Net Income marign decreased slightly on 1.9 pp from 6.7% to 4.8% in FY2015.
Appendix 1: Peers in Textiles
Below we provide Vtm benchmarking against other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | -99.6% | -58.0% | -96.6% | 74,809.1% | |
| Gujarat Cotex ($GUJCOTEX) | 625.9% | -6.2% | -66.0% | 176.2% | |
| T T ($TTL) | -39.2% | -21.8% | 28.7% | 47.8% | |
| Filatex India ($FILATEX) | -74.3% | -2.7% | 158.7% | 44.5% | |
| Gtn Textiles ($GTNTEX) | -27.7% | -8.8% | 51.2% | 39.4% | |
| |
|---|
| Median (73 companies) | -33.5% | 5.0% | 9.3% | 14.2% | 17.3% |
|---|
| Vtm ($VTMLTD) | | -10.5% | 22.7% | 17.8% | -1.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | |
| Vardhman Textiles ($VTL) | 24.9% | 13.8% | 20.1% | 24.3% | |
| Welspun India ($WELSPUNIND) | 13.3% | 12.2% | 16.8% | 22.6% | 24.1% |
| Nitin Spinners ($NITINSPIN) | 23.7% | 10.5% | 19.7% | 19.3% | |
| Shri Dinesh Mills ($SHRIDINE) | 24.7% | 22.4% | 18.5% | 18.7% | |
| |
|---|
| Median (53 companies) | 12.7% | 6.3% | 9.5% | 9.5% | 16.1% |
|---|
| Vtm ($VTMLTD) | 21.5% | 11.7% | 17.3% | 13.3% | 8.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Worldwide ($JINDWORLD) | 3.6% | 3.0% | 10.5% | 20.7% | |
| SRF ($SRF) | 0.0% | 0.0% | 18.7% | 20.0% | |
| Welspun India ($WELSPUNIND) | 11.3% | 5.6% | 7.8% | 16.4% | 10.9% |
| Sel Manufacturing Company ($SELMCL) | 54.2% | 53.9% | 25.1% | 14.0% | |
| Grasim Industries ($GRASIM) | 7.8% | 17.7% | 21.7% | 11.6% | |
| |
|---|
| Median (21 companies) | 4.5% | 3.4% | 5.3% | 6.8% | 7.6% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 13.8% | 6.0% | 19.5% | 21.5% | |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 16.0% | 9.5% | 13.6% | 19.8% | |
| Vardhman Textiles ($VTL) | 15.5% | 6.6% | 11.9% | 17.3% | |
| Maral Overseas ($MARALOVER) | | 4.6% | 14.1% | 16.0% | |
| Rswm ($RSWM) | 17.4% | 2.2% | 15.2% | 15.5% | |
| |
|---|
| Median (126 companies) | 10.1% | 3.5% | 9.0% | 8.9% | 14.8% |
|---|
| Vtm ($VTMLTD) | 18.9% | 4.9% | 14.8% | 11.6% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaybharat Textiles & Real Estate ($JAYTEX) | 8.4x | 10.9x | 53.6x | 23.8x | |
| Sree Jayalakshmi Autospin ($SREEJAYA) | 3.4x | | 9.7x | 12.8x | |
| Bombay Rayon Fashions ($BRFL) | 5.9x | 4.9x | 4.9x | 11.6x | |
| Sel Manufacturing Company ($SELMCL) | 5.6x | 9.4x | 6.6x | 11.5x | |
| Ruby Mills ($RUBYMILLS) | 15.9x | 12.6x | 15.3x | 10.8x | |
| |
|---|
| Median (69 companies) | 3.9x | 3.8x | 3.2x | 0.0x | 3.1x |
|---|
| Vtm ($VTMLTD) | 0.2x | -1.3x | -0.6x | -0.6x | 0.0x |
