Gujarat Fluorochemicals Net Income jumped on 214% in 2015 and Revenue surged on 52.9%
15-05-2015 • About Gujarat Fluorochemicals (
$GUJFLUORO) • By InTwits
Gujarat Fluorochemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 19.6% in FY2015, 18.1% in FY2014, 35.2% in FY2013, 47.7% in FY2012, 27.7% in FY2011
- Gujarat Fluorochemicals has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.7%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 4,276 in FY2015, 4,239 in FY2014, 7,529 in FY2013, 12,117 in FY2012, 5,963 in FY2011
- The company has business model with average profitability: ROIC is at 10.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gujarat Fluorochemicals ($GUJFLUORO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,439 | 28,302 | 31,664 | 34,515 | 52,772 | 52.9% |
| EBITDA | 3,995 | 13,504 | 11,141 | 6,250 | 10,352 | 65.6% |
| Net Income | 2,714 | 7,801 | 5,434 | 1,861 | 5,853 | 214.5% |
Balance Sheet
|
|---|
| Cash | 301 | 2,837 | 523 | 265 | 11,152 | 4,113.9% |
| Short Term Debt | 5,112 | 6,460 | 9,259 | 10,551 | 14,296 | 35.5% |
| Long Term Debt | 2,734 | 8,957 | 12,085 | 12,472 | 11,358 | -8.9% |
Cash flow
|
|---|
| Capex | 5,963 | 12,117 | 7,529 | 4,239 | 4,276 | 0.9% |
Ratios
|
|---|
| Revenue growth | -76.2% | 96.0% | 11.9% | 9.0% | 52.9% | |
| EBITDA growth | -19.1% | 238.0% | -17.5% | -43.9% | 65.6% | |
| EBITDA Margin | 27.7% | 47.7% | 35.2% | 18.1% | 19.6% | 1.5% |
| Net Income Margin | 18.8% | 27.6% | 17.2% | 5.4% | 11.1% | 5.7% |
| CAPEX, % of revenue | 41.3% | 42.8% | 23.8% | 12.3% | 8.1% | -4.2% |
| ROIC | 11.0% | 31.7% | 18.4% | 7.2% | 10.7% | 3.5% |
| ROE | 15.1% | 33.7% | 18.5% | 5.8% | 15.5% | 9.8% |
| Net Debt/EBITDA | 1.9x | 0.9x | 1.9x | 3.6x | 1.4x | -2.2x |
Revenue and profitability
Gujarat Fluorochemicals's Revenue surged on 52.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 8.4% to 7.3% in FY2015.
Net Income marign increased on 5.7 pp from 5.4% to 11.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 8.1%. CAPEX/Revenue dropped on 34.7 pp from 42.8% in FY2012 to 8.1% in FY2015. For the last three years the average CAPEX/Revenue was 14.7%.
Return on investment
The company operates at good ROE (15.54%) while ROIC is low (10.68%). ROIC increased on 3.5 pp from 7.2% to 10.7% in FY2015. ROE increased on 9.8 pp from 5.8% to 15.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.5x. Net Debt / EBITDA dropped on 2.2x from 3.6x to 1.4x in FY2015. Debt surged on 11.4% in FY2015 while cash surged on 4,114% in FY2015.
Appendix 1: Peers in Industrial Gases
Below we provide Gujarat Fluorochemicals benchmarking against other companies in Industrial Gases 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 ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Oxygen ($NOL) | 9.7% | 9.7% | | | |
| |
|---|
| Median (1 company) | 9.7% | 9.7% | | | |
|---|
| Gujarat Fluorochemicals ($GUJFLUORO) | 11.0% | 31.7% | 18.4% | 7.2% | 10.7% |
