Ruby Mills Net Debt / EBITDA dropped on 2.2x from 10.8x to 8.6x in 2015 while EBITDA increased on 7.9%
16-05-2015 • About Ruby Mills (
$RUBYMILLS) • By InTwits
Ruby Mills reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ruby Mills has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.5%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 55.2 in FY2015, 165 in FY2014, 84.3 in FY2013, 177 in FY2012, 813 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with high leverage: Net Debt/EBITDA is 8.6x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ruby Mills ($RUBYMILLS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,349 | 1,676 | 1,584 | 1,876 | 1,977 | 5.4% |
| EBITDA | 340 | 475 | 397 | 537 | 579 | 7.9% |
| Net Income | 576 | 582 | 305 | 449 | 539 | 20.1% |
Balance Sheet
|
|---|
| Cash | 33 | 181 | 49 | 14 | 14 | -5.1% |
| Short Term Debt | 2,894 | 1,251 | 1,288 | 2,457 | 2,055 | -16.4% |
| Long Term Debt | 2,548 | 4,912 | 4,818 | 3,336 | 2,926 | -12.3% |
Cash flow
|
|---|
| Capex | 813 | 177 | 84 | 165 | 55 | -66.5% |
Ratios
|
|---|
| Revenue growth | -41.7% | 24.2% | -5.5% | 18.5% | 5.4% | |
| EBITDA growth | -38.5% | 39.6% | -16.4% | 35.2% | 7.9% | |
| EBITDA Margin | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% | 0.7% |
| Net Income Margin | 42.7% | 34.8% | 19.2% | 23.9% | 27.3% | 3.4% |
| CAPEX, % of revenue | 60.3% | 10.6% | 5.3% | 8.8% | 2.8% | -6.0% |
| ROIC | 2.0% | 3.1% | 1.8% | 3.7% | 4.6% | 1.0% |
| ROE | 46.1% | 32.3% | 13.7% | 17.4% | 17.7% | 0.3% |
| Net Debt/EBITDA | 15.9x | 12.6x | 15.3x | 10.8x | 8.6x | -2.2x |
Revenue and profitability
Ruby Mills's Revenue increased on 5.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 19.6% to 15.2% in FY2015.
Net Income marign increased on 3.4 pp from 23.9% to 27.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Ruby Mills's CAPEX/Revenue was 2.8% in FY2015. CAPEX/Revenue decreased on 7.8 pp from 10.6% in FY2012 to 2.8% in FY2015. Average CAPEX/Revenue for the last three years was 5.6%.
Return on investment
The company operates at good ROE (17.70%) while ROIC is low (4.64%). ROIC increased slightly on 0.96 pp from 3.7% to 4.6% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 8.6x Net Debt / EBITDA and 8.6x Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from 10.8x to 8.6x in FY2015. Debt dropped on 14.0% in FY2015 while cash decreased on 5.1% in FY2015.
Appendix 1: Peers in Textiles
Below we provide Ruby Mills benchmarking against other companies in Textiles 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 |
|---|
| 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 ($GTNTEX) | -27.7% | -8.8% | 51.2% | 39.4% | |
| |
|---|
| Median (73 companies) | -30.3% | 4.8% | 10.0% | 14.2% | 3.5% |
|---|
| Ruby Mills ($RUBYMILLS) | | 24.2% | -5.5% | 18.5% | 5.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Grasim Industries ($GRASIM) | 23.4% | 22.3% | 21.4% | 16.9% | 15.9% |
| |
|---|
| Median (53 companies) | 12.7% | 6.3% | 9.5% | 9.5% | 10.9% |
|---|
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% |
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 ($GRASIM) | 7.8% | 17.7% | 21.7% | 11.6% | 10.2% |
| |
|---|
| Median (20 companies) | 4.5% | 3.0% | 5.9% | 6.7% | 8.9% |
|---|
| Ruby Mills ($RUBYMILLS) | 60.3% | 10.6% | 5.3% | 8.8% | 2.8% |
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 ($RSWM) | 17.4% | 2.2% | 15.2% | 15.5% | 11.8% |
| |
|---|
| Median (126 companies) | 10.1% | 3.6% | 9.3% | 9.6% | 11.8% |
|---|
| Ruby Mills ($RUBYMILLS) | 2.0% | 3.1% | 1.8% | 3.7% | 4.6% |
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 | |
| Prime Urban Development India ($PRIMEURB) | 0.8x | 4.1x | | 9.4x | |
| |
|---|
| Median (69 companies) | 3.7x | 3.8x | 3.2x | 0.0x | 0.6x |
|---|
| Ruby Mills ($RUBYMILLS) | 15.9x | 12.6x | 15.3x | 10.8x | 8.6x |
