Khaitan Chemicals & Fertilizers revenue dropped on 15.2% in 2015 while EBITDA Margin increased slightly on 1.3 pp from 9.2% to 10.5%

16-05-2015 • About Khaitan Chemicals & Fertilizers ($KHAICHEM) • By InTwits

Khaitan Chemicals & Fertilizers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: Khaitan Chemicals & Fertilizers is a company in decline: FY2015 revenue growth was -15.2%, 5 years revenue CAGR was -3.8%.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Khaitan Chemicals & Fertilizers ($KHAICHEM) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	4,542	6,414	4,550	3,881	3,293	-15.2%
EBITDA	711	706	308	359	346	-3.5%
Net Income	314	217	21	-16	35
Balance Sheet
Cash	26	415	296	100		-100.0%
Short Term Debt	1,355	1,851	2,905	1,782		-100.0%
Long Term Debt	161	238	149	201		-100.0%
Cash flow
Capex	177	96	195
Ratios
Revenue growth	13.7%	41.2%	-29.1%	-14.7%	-15.2%
EBITDA growth	771.9%	-0.7%	-56.4%	16.6%	-3.5%
EBITDA Margin	15.7%	11.0%	6.8%	9.2%	10.5%	1.3%
Net Income Margin	6.9%	3.4%	0.5%	-0.4%	1.1%	1.5%
CAPEX, % of revenue	3.9%	1.5%	4.3%			0.0%
ROIC	25.7%	20.1%	5.9%	7.3%		-7.3%
ROE	34.0%	18.7%	1.7%	-1.3%		1.3%
Net Debt/EBITDA	2.1x	2.4x	9.0x	5.3x	0.0x	-5.3x

Revenue and profitability

Khaitan Chemicals & Fertilizers's Revenue dropped on 15.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 9.2% to 10.5% in FY2015.

Net Income marign increased slightly on 1.5 pp from -0.42% to 1.1% in FY2015.

Appendix 1: Peers in Fertilizers

Below we provide Khaitan Chemicals & Fertilizers benchmarking against other companies in Fertilizers 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
Coromandel International ($COROMANDEL)		199.6%	-38.7%	18.8%	13.4%
Chambal Fertilisers & Chemicals ($CHAMBLFERT)		32.6%	8.8%	8.6%	9.3%
Basant Agro Tech (India) ($BASANTGL)	-53.8%	63.9%	5.3%	7.7%
Gujarat State Fertilizers & Chemicals ($GSFC)		11.5%	17.9%	-13.4%	-1.6%
Rama Phosphates ($RAMAPHO)	-25.6%	56.4%	11.4%	-13.9%
Median (5 companies)	-39.7%	56.4%	8.8%	7.7%	9.3%
Khaitan Chemicals & Fertilizers ($KHAICHEM)		41.2%	-29.1%	-14.7%	-15.2%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Coromandel International ($COROMANDEL)	34.1%	10.8%	16.3%	14.0%	12.8%
Gujarat State Fertilizers & Chemicals ($GSFC)	25.4%	22.4%	13.6%	12.1%	12.3%
Chambal Fertilisers & Chemicals ($CHAMBLFERT)	15.0%	13.2%	10.7%	10.6%	8.2%
Basant Agro Tech (India) ($BASANTGL)	9.5%	8.7%	9.4%	8.6%
Rama Phosphates ($RAMAPHO)	12.8%	11.2%	7.7%	0.2%
Median (5 companies)	15.0%	11.2%	10.7%	10.6%	12.3%
Khaitan Chemicals & Fertilizers ($KHAICHEM)	15.7%	11.0%	6.8%	9.2%	10.5%

Top companies by CAPEX/Revenue, %

Top	FY2011	FY2012	FY2013	FY2014	FY2015
Gujarat State Fertilizers & Chemicals ($GSFC)	9.8%	7.7%	6.6%	5.6%	2.6%
Chambal Fertilisers & Chemicals ($CHAMBLFERT)	1.9%	1.6%	1.2%	1.7%	2.0%
Coromandel International ($COROMANDEL)	5.9%		4.4%	1.6%	1.2%
Median (3 companies)	5.9%	4.1%	4.4%	1.7%	2.0%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Coromandel International ($COROMANDEL)	28.9%	22.2%	16.7%	18.3%	20.5%
Gujarat State Fertilizers & Chemicals ($GSFC)	32.9%	27.1%	14.2%	9.2%	10.2%
Chambal Fertilisers & Chemicals ($CHAMBLFERT)	12.0%	13.6%	9.3%	9.2%	8.6%
Kothari Industrial Corporation ($KOTIC)			-5.5%
Teesta Agro Industries ($TEEAI)	1.7%
Median (7 companies)	12.8%	22.2%	13.6%	9.2%	10.2%
Khaitan Chemicals & Fertilizers ($KHAICHEM)	25.7%	20.1%	5.9%	7.3%

Top companies by Net Debt / EBITDA

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Chambal Fertilisers & Chemicals ($CHAMBLFERT)	2.5x	3.3x	5.4x	4.5x	4.5x
Coromandel International ($COROMANDEL)	1.1x	1.8x	2.8x	1.4x	2.0x
Gujarat State Fertilizers & Chemicals ($GSFC)	-0.2x	-0.2x	1.6x	0.6x	0.6x
Basant Agro Tech (India) ($BASANTGL)	3.9x	3.9x	3.8x	0.0x
Rama Phosphates ($RAMAPHO)	1.0x	0.8x	1.2x	0.0x
Median (5 companies)	1.0x	1.8x	2.8x	0.6x	2.0x
Khaitan Chemicals & Fertilizers ($KHAICHEM)	2.1x	2.4x	9.0x	5.3x	0.0x

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