Dalmia Bharat Sugar And Industries EBITDA increased on 5.0% in 2015 and EBITDA Margin increased slightly on 0.79 pp from 9.1% to 9.9%
14-05-2015 • About Dalmia Bharat Sugar And Industries (
$DALMIASUG) • By InTwits
Dalmia Bharat Sugar And Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dalmia Bharat Sugar And Industries is a company in decline: FY2015 revenue growth was -3.5%, 5 years revenue CAGR was -3.2%
- Dalmia Bharat Sugar And Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's a lot of higher than industry average of 2.4%.
- CAPEX is quite volatile: 503 in FY2015, 1,802 in FY2014, 1,460 in FY2013, 156 in FY2012, 169 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.7%
- It operates with high leverage: Net Debt/EBITDA is 6.9x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dalmia Bharat Sugar And Industries ($DALMIASUG) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,690 | 7,347 | 9,976 | 11,915 | 11,501 | -3.5% |
| EBITDA | 655 | 856 | 1,500 | 1,080 | 1,134 | 5.0% |
| Net Income | 38 | 9 | 184 | 31 | 15 | -51.1% |
Balance Sheet
|
|---|
| Cash | 398 | 719 | 214 | 440 | 326 | -25.9% |
| Short Term Debt | 778 | 3,465 | 4,428 | 2,852 | 3,564 | 25.0% |
| Long Term Debt | 5,831 | 3,639 | 3,430 | 5,267 | 4,609 | -12.5% |
Cash flow
|
|---|
| Capex | 169 | 156 | 1,460 | 1,802 | 503 | -72.1% |
Ratios
|
|---|
| Revenue growth | -50.5% | 9.8% | 35.8% | 19.4% | -3.5% | |
| EBITDA growth | -85.8% | 30.5% | 75.4% | -28.0% | 5.0% | |
| EBITDA Margin | 9.8% | 11.6% | 15.0% | 9.1% | 9.9% | 0.8% |
| Net Income Margin | 0.6% | 0.1% | 1.8% | 0.3% | 0.1% | -0.1% |
| CAPEX, % of revenue | 2.5% | 2.1% | 14.6% | 15.1% | 4.4% | -10.7% |
| ROIC | 0.9% | 3.6% | 6.0% | 4.4% | 4.7% | 0.3% |
| ROE | 0.4% | 0.2% | 4.1% | 0.7% | 0.3% | -0.3% |
| Net Debt/EBITDA | 9.5x | 7.5x | 5.1x | 7.1x | 6.9x | -0.2x |
Revenue and profitability
Dalmia Bharat Sugar And Industries's Revenue decreased on 3.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.79 pp from 9.1% to 9.9% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Dalmia Bharat Sugar And Industries's CAPEX/Revenue was 4.4% in FY2015. Dalmia Bharat Sugar And Industries's CAPEX/Revenue increased on 2.2 pp from 2.1% in FY2012 to 4.4% in FY2015. For the last three years the average CAPEX/Revenue was 11.4%.
Return on investment
The company operates at low ROIC (4.66%) and ROE (0.32%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 6.9x Net Debt / EBITDA and 7.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 7.1x to 6.9x in FY2015. Debt increased slightly on 0.67% in FY2015 while cash dropped on 25.9% in FY2015.
Management team
The company's CEO is Gautam Dalmia. Gautam Dalmia has 8 years tenure at the company.
Appendix 1: Peers in Sugar
Below you can find Dalmia Bharat Sugar And Industries benchmarking vs. other companies in Sugar 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 |
|---|
| K.M.Sugar Mills ($KMSUGAR) | -56.6% | -11.3% | 7.0% | 48.3% | |
| Naraingarh Sugar Mills ($NARSM) | -25.7% | -13.3% | 46.2% | 42.5% | |
| Sbec Sugar ($SBECSUG) | -38.8% | -8.7% | 8.0% | 24.4% | |
| Dcm Shriram Industries ($DCMSRMIND) | -39.8% | 8.7% | 13.9% | 20.0% | |
| Shree Renuka Sugars ($RENUKA) | -28.6% | | | 11.5% | |
| |
|---|
| Median (8 companies) | -28.6% | 3.9% | 13.7% | 15.7% | |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | | 9.8% | 35.8% | 19.4% | -3.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 9.9% | 12.2% | 17.3% | 15.5% | |
| K.M.Sugar Mills ($KMSUGAR) | 4.7% | 6.8% | | 10.1% | |
| Shree Renuka Sugars ($RENUKA) | 14.5% | | 15.1% | 8.5% | |
| Dcm Shriram Industries ($DCMSRMIND) | 4.1% | 4.8% | 6.3% | 7.1% | |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 9.1% | 12.2% | 13.3% | 6.9% | |
| |
|---|
| Median (6 companies) | 6.9% | 5.8% | 12.0% | 7.8% | |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 9.8% | 11.6% | 15.0% | 9.1% | 9.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shree Renuka Sugars ($RENUKA) | | | 3.5% | 2.6% | |
| Dcm Shriram Industries ($DCMSRMIND) | 3.4% | 2.4% | 2.7% | 2.1% | |
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 2.2% | 1.3% | 1.6% | 0.4% | |
| |
|---|
| Median (3 companies) | 3.0% | 1.7% | 3.1% | 2.1% | |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 2.5% | 2.1% | 14.6% | 15.1% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 4.2% | 10.1% | 21.0% | 14.5% | |
| Dcm Shriram Industries ($DCMSRMIND) | 2.7% | 4.0% | 7.3% | 11.2% | |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 6.0% | 10.5% | 12.7% | 3.4% | |
| Uttam Sugar Mills ($UTTAMSUGAR) | 6.0% | -0.3% | 10.0% | 0.0% | |
| Shree Renuka Sugars ($RENUKA) | 5.8% | 0.0% | 6.6% | -1.2% | |
| |
|---|
| Median (11 companies) | 5.0% | 5.4% | 7.0% | 3.4% | |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 0.9% | 3.6% | 6.0% | 4.4% | 4.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 7.8x | 5.3x | 4.2x | 9.4x | |
| Shree Renuka Sugars ($RENUKA) | 6.6x | | 4.0x | 7.8x | |
| Dcm Shriram Industries ($DCMSRMIND) | 8.4x | 8.0x | 5.7x | 3.2x | |
| K.M.Sugar Mills ($KMSUGAR) | 5.9x | 3.7x | | 1.4x | |
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 4.3x | 2.4x | 0.6x | 1.3x | |
| |
|---|
| Median (6 companies) | 7.2x | 4.5x | 4.2x | 2.3x | |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 9.5x | 7.5x | 5.1x | 7.1x | 6.9x |
