Eskay K'N'It (India) revenue dropped on 18.2% in 2015 and EBITDA Margin dropped on 28.6 pp from -10.7% to -39.3%
16-05-2015 • About Eskay K'N'It (India) (
$ESKAY) • By InTwits
Eskay K'N'It (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Eskay K'N'It (India) is a company in decline: FY2015 revenue growth was -18.2%, 5 years revenue CAGR was -3.3%
- The company operates at negative EBITDA Margin: -39.3%
- Eskay K'N'It (India) spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -1.9%0
- It operates with high leverage: Net Debt/EBITDA is 4.4x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Eskay K'N'It (India) ($ESKAY) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,302 | 10,515 | 6,310 | 5,139 | 4,205 | -18.2% |
| EBITDA | 1,183 | 681 | -327 | -552 | -1,652 | |
| Net Income | 65 | -563 | -1,420 | -1,486 | -2,396 | |
Balance Sheet
|
|---|
| Cash | 10 | 11 | 8 | | | |
| Short Term Debt | 2,509 | 2,520 | 2,518 | | | |
| Long Term Debt | 2,480 | 2,019 | 2,581 | | | |
Cash flow
|
|---|
| Capex | 1,030 | 0 | | | | |
Ratios
|
|---|
| Revenue growth | 86.9% | 13.0% | -40.0% | -18.5% | -18.2% | |
| EBITDA growth | 7.5% | -42.4% | -148.0% | 68.8% | 199.4% | |
| EBITDA Margin | 12.7% | 6.5% | -5.2% | -10.7% | -39.3% | -28.6% |
| Net Income Margin | 0.7% | -5.4% | -22.5% | -28.9% | -57.0% | -28.1% |
| CAPEX, % of revenue | 11.1% | 0.0% | | | | 0.0% |
| ROIC | 5.4% | -1.8% | -13.6% | | | 0.0% |
| ROE | 2.0% | -18.8% | -71.1% | | | 0.0% |
| Net Debt/EBITDA | 4.2x | 6.6x | | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 18.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 14.7 pp from 67.6% to 82.4% in FY2015.
Net Income marign dropped on 28.1 pp from -28.9% to -57.0% in FY2015.
Appendix 1: Peers in Textiles
Below you can find Eskay K'N'It (India) benchmarking vs. other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | -99.6% | -58.0% | -96.6% | 74,809.1% | |
| Gujarat Cotex ($GUJCOTEX) | | -6.2% | -66.0% | 176.2% | -52.0% |
| T T ($TTL) | -39.2% | -21.8% | 28.7% | 47.8% | |
| Filatex India ($FILATEX) | -74.3% | -2.7% | 158.7% | 44.5% | |
| Gtn Textiles ($GTNTEX) | -27.7% | -8.8% | 51.2% | 39.4% | |
| |
|---|
| Median (73 companies) | -30.3% | 4.8% | 10.0% | 14.4% | 5.4% |
|---|
| Eskay K'N'It (India) ($ESKAY) | | 13.0% | -40.0% | -18.5% | -18.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% |
| Vardhman Textiles ($VTL) | 24.9% | 13.8% | 20.1% | 24.3% | 16.5% |
| Welspun India ($WELSPUNIND) | 13.3% | 12.2% | 16.8% | 22.6% | 24.1% |
| Nitin Spinners ($NITINSPIN) | 23.7% | 10.5% | 19.7% | 19.3% | 17.0% |
| Shri Dinesh Mills ($SHRIDINE) | 24.7% | 22.4% | 18.5% | 18.7% | |
| |
|---|
| Median (53 companies) | 12.9% | 6.3% | 9.5% | 10.1% | 11.8% |
|---|
| Eskay K'N'It (India) ($ESKAY) | 12.7% | 6.5% | -5.2% | -10.7% | -39.3% |
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% | 11.4% |
| 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 ($GRASIM) | 7.8% | 17.7% | 21.7% | 11.6% | 10.2% |
| |
|---|
| Median (21 companies) | 4.5% | 3.4% | 5.6% | 6.8% | 8.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 13.8% | 6.0% | 19.5% | 21.5% | 17.5% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 16.0% | 9.5% | 13.6% | 19.8% | 14.6% |
| Vardhman Textiles ($VTL) | 15.5% | 6.6% | 11.9% | 17.3% | 8.5% |
| Maral Overseas ($MARALOVER) | | 4.6% | 14.1% | 16.0% | |
| Rswm ($RSWM) | 17.4% | 2.2% | 15.2% | 15.5% | 11.8% |
| |
|---|
| Median (126 companies) | 10.1% | 3.6% | 9.3% | 9.2% | 10.8% |
|---|
| Eskay K'N'It (India) ($ESKAY) | 5.4% | -1.8% | -13.6% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jaybharat Textiles & Real Estate ($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 | 8.6x |
| |
|---|
| Median (70 companies) | 3.7x | 3.8x | 3.2x | 0.0x | 1.2x |
|---|
