Visaka Industries reports 53.3% EBITDA growth and 2.5 pp EBITDA Margin growth from 7.0% to 9.5%
07-05-2015 • About Visaka Industries (
$VIKASAS) • By InTwits
Visaka Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Visaka Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 1.6%.
- CAPEX is quite volatile: 221 in FY2015, 909 in FY2014, 597 in FY2013, 409 in FY2012, 301 in FY2011
- The company has business model with low profitability: ROIC is at 8.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Visaka Industries ($VIKASAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,541 | 7,504 | 9,156 | 8,921 | 10,131 | 13.6% |
| EBITDA | 881 | 824 | 1,108 | 626 | 959 | 53.3% |
| Net Income | 451 | 343 | 507 | 120 | 212 | 77.4% |
Balance Sheet
|
|---|
| Cash | 532 | 488 | 336 | 254 | 281 | 10.4% |
| Short Term Debt | 1,609 | 1,482 | 2,477 | 1,924 | 2,190 | 13.8% |
| Long Term Debt | 66 | 53 | 297 | 725 | 670 | -7.6% |
Cash flow
|
|---|
| Capex | 301 | 409 | 597 | 909 | 221 | -75.7% |
Ratios
|
|---|
| Revenue growth | -42.8% | 14.7% | 22.0% | -2.6% | 13.6% | |
| EBITDA growth | -20.7% | -6.4% | 34.4% | -43.5% | 53.3% | |
| EBITDA Margin | 13.5% | 11.0% | 12.1% | 7.0% | 9.5% | 2.5% |
| Net Income Margin | 6.9% | 4.6% | 5.5% | 1.3% | 2.1% | 0.8% |
| CAPEX, % of revenue | 4.6% | 5.5% | 6.5% | 10.2% | 2.2% | -8.0% |
| ROIC | 16.7% | 14.1% | 16.6% | 6.4% | 8.3% | 1.9% |
| ROE | 18.1% | 12.5% | 16.6% | 3.6% | 6.4% | 2.8% |
| Net Debt/EBITDA | 1.3x | 1.3x | 2.2x | 3.8x | 2.7x | -1.1x |
Revenue and profitability
The company's Revenue jumped on 13.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign increased slightly on 0.75 pp from 1.3% to 2.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Visaka Industries's CAPEX/Revenue was 2.2% in FY2015. The company's CAPEX/Revenue decreased on 3.3 pp from 5.5% in FY2012 to 2.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 6.3%.
Return on investment
The company operates at low ROIC (8.30%) and ROE (6.38%). ROIC increased slightly on 1.9 pp from 6.4% to 8.3% in FY2015. ROE increased on 2.8 pp from 3.6% to 6.4% in FY2015.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 3.8x to 2.7x in FY2015. Debt increased on 7.9% in FY2015 while cash jumped on 10.4% in FY2015.
Valuation
Visaka Industries's trades at EV/EBITDA 4.5x and P/E 8.0x while industy averages are 10.5x and 26.1x. Visaka Industries's EV/(EBITDA-CAPEX) is 5.8x with the industry average at 4.7x.
Appendix 1: Peers in Cement & Cement Products
Below you can find Visaka Industries benchmarking vs. other companies in Cement & Cement Products 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 |
|---|
| Heidelbergcement India ($HEIDELBERG) | -50.1% | -13.1% | 37.5% | 36.3% | |
| Shree Digvijay Cement Co ($SHREDIGCEM) | -23.4% | 14.9% | -13.5% | 24.7% | |
| Indian Hume Pipe Co ($INDIANHUME) | -43.1% | -20.3% | 34.5% | 18.3% | |
| Birla Corporation ($BIRLACORPN) | | 6.2% | 13.8% | 15.9% | 6.4% |
| Ambuja Cements ($AMBUJACEM) | -23.0% | 14.3% | -6.5% | 9.0% | |
| |
|---|
| Median (15 companies) | -40.8% | 14.9% | 11.4% | 5.1% | 6.4% |
|---|
| Visaka Industries ($VIKASAS) | | 14.7% | 22.0% | -2.6% | 13.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambuja Cements ($AMBUJACEM) | 23.4% | 25.6% | 18.2% | 19.4% | |
| Heidelbergcement India ($HEIDELBERG) | 6.9% | 8.3% | 9.3% | 15.9% | |
| Deccan Cements ($DECCANCE) | 19.2% | 22.8% | 13.2% | 14.7% | |
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | |
| J.K.Cement ($JKCEMENT) | 13.3% | 20.3% | 19.2% | 12.7% | |
| |
|---|
| Median (14 companies) | 13.3% | 19.2% | 13.6% | 11.8% | 9.7% |
|---|
| Visaka Industries ($VIKASAS) | 13.5% | 11.0% | 12.1% | 7.0% | 9.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| J.K.Cement ($JKCEMENT) | 14.1% | 6.5% | 18.8% | 55.8% | |
| Acc ($ACC) | 4.8% | 5.0% | 8.6% | 13.7% | |
| K.C.P ($KCP) | 28.2% | 8.6% | 9.9% | 12.6% | |
| Shree Digvijay Cement Co ($SHREDIGCEM) | 13.6% | 4.1% | 8.5% | 8.5% | |
| Ambuja Cements ($AMBUJACEM) | 7.7% | 7.2% | 8.5% | 8.3% | |
| |
|---|
| Median (11 companies) | 9.0% | 6.5% | 7.8% | 5.5% | 6.9% |
|---|
| Visaka Industries ($VIKASAS) | 4.6% | 5.5% | 6.5% | 10.2% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | |
| Saurashtra Cement ($SAURASHCEM) | 4.3% | 38.6% | 42.7% | 13.9% | |
| Ambuja Cements ($AMBUJACEM) | 17.0% | 19.4% | 11.2% | 13.0% | |
| Acc ($ACC) | 18.5% | 20.2% | 12.7% | 11.0% | |
| K.C.P ($KCP) | 14.9% | 17.6% | 6.7% | 7.1% | |
| |
|---|
| Median (16 companies) | 7.6% | 15.4% | 8.2% | 6.4% | 3.8% |
|---|
| Visaka Industries ($VIKASAS) | 16.7% | 14.1% | 16.6% | 6.4% | 8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prism Cement ($PRISMCEM) | 3.4x | 4.8x | 6.0x | 10.0x | |
| J.K.Cement ($JKCEMENT) | 4.5x | 2.3x | 2.3x | 6.9x | |
| India Cements ($INDIACEM) | 4.8x | 3.2x | 3.5x | 5.5x | |
| K.C.P ($KCP) | 2.6x | 1.1x | 3.0x | 3.6x | |
| Deccan Cements ($DECCANCE) | 4.1x | 1.7x | 3.3x | 3.4x | |
| |
|---|
| Median (13 companies) | 2.9x | 2.1x | 2.9x | 3.0x | 2.7x |
|---|
| Visaka Industries ($VIKASAS) | 1.3x | 1.3x | 2.2x | 3.8x | 2.7x |
