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Vinati Organics CAPEX jumped on 93.3% in 2015 and Revenue jumped on 10.9%

16-05-2015 • About Vinati Organics ($VINATIORGA) • By InTwits

Vinati Organics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is expanding: 24.9% in FY2015 vs. 22.7% in FY2014 vs. 21.7% in FY2011
  • Vinati Organics has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.9%. At the same time it's a lot of higher than industry average of 4.8%.
  • CAPEX is quite volatile: 568 in FY2015, 294 in FY2014, 1,558 in FY2013, 609 in FY2012, 357 in FY2011
  • The company has highly profitable business model: ROIC is at 34.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Vinati Organics ($VINATIORGA) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue3,2264,4755,5296,9617,71710.9%
EBITDA7009711,2031,5791,92121.6%
Net Income5205486878621,15834.4%
Balance Sheet
Cash16304307417258-38.1%
Short Term Debt5098141,017516281-45.6%
Long Term Debt2609131,3551,100372-66.1%
Cash flow
Capex3576091,55829456893.3%
Ratios
Revenue growth-63.9%38.7%23.6%25.9%10.9%
EBITDA growth20.7%38.8%23.9%31.2%21.6%
EBITDA Margin21.7%21.7%21.8%22.7%24.9%2.2%
Net Income Margin16.1%12.2%12.4%12.4%15.0%2.6%
CAPEX, % of revenue11.1%13.6%28.2%4.2%7.4%3.1%
ROIC31.4%29.6%26.2%30.6%34.8%4.2%
ROE42.8%33.1%32.1%31.3%31.1%-0.1%
Net Debt/EBITDA1.1x1.5x1.7x0.8x0.2x-0.6x

Revenue and profitability


Vinati Organics's Revenue jumped on 10.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.

Net Income marign increased on 2.6 pp from 12.4% to 15.0% in FY2015.

Capital expenditures (CAPEX) and working capital investments


The company's CAPEX/Revenue was 7.4% in FY2015. The company's CAPEX/Revenue decreased on 6.3 pp from 13.6% in FY2012 to 7.4% in FY2015. It's average CAPEX/Revenue for the last three years was 13.3%.

Return on investment


The company operates at high and attractive ROIC (34.78%) and ROE (31.12%). ROIC increased on 4.2 pp from 30.6% to 34.8% in FY2015. ROE showed almost no change in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 0.2x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.6x from 0.8x to 0.2x in FY2015. Debt dropped on 59.6% in FY2015 while cash dropped on 38.1% in FY2015.

Appendix 1: Peers in Specialty Chemicals


Below you can find Vinati Organics benchmarking vs. other companies in Specialty Chemicals 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
Dai-Ichi Karkaria ($DAICHI)20.7%31.4%45.4%22.8%
Dynemic Products ($DYNPRO)-55.8%27.4%-0.0%40.6%
Camlin Fine Sciences ($CAMLINFIN)95.3%11.4%36.1%9.8%
Sudarshan Chemical Industries ($SUDARSCHEM)-49.4%10.5%9.1%28.2%
Kiri Industries ($KIRIINDUS)244.4%7.9%-86.5%24.8%
 
Median (27 companies)-50.1%19.8%11.4%11.3%5.5%
Vinati Organics ($VINATIORGA)38.7%23.6%25.9%10.9%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Adi Finechem ($ADIFINCHM)18.2%15.1%14.0%22.1%16.5%
Solar Industries India ($SOLARINDS)18.1%18.5%17.5%17.9%
Ultramarine & Pigments ($ULTRAMAR)20.1%18.0%15.5%17.4%
Anil ($ANILLTD)17.4%18.1%16.9%17.1%
Dynemic Products ($DYNPRO)17.3%13.6%11.2%16.0%
 
Median (25 companies)11.2%10.6%11.2%10.6%13.0%
Vinati Organics ($VINATIORGA)21.7%21.7%21.8%22.7%24.9%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Adi Finechem ($ADIFINCHM)8.2%7.3%4.8%12.6%16.9%
Solar Industries India ($SOLARINDS)14.2%13.0%9.9%12.3%
Nitta Gelatin India ($NITTAGELA)21.3%8.8%4.6%8.5%
Meghmani Organics ($MEGH)9.9%10.2%10.3%7.9%
Camlin Fine Sciences ($CAMLINFIN)7.5%4.3%5.7%7.1%5.1%
 
Median (18 companies)7.0%4.9%4.5%4.5%1.6%
Vinati Organics ($VINATIORGA)11.1%13.6%28.2%4.2%7.4%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Adi Finechem ($ADIFINCHM)27.6%30.6%29.8%46.4%26.3%
Pidilite Industries ($PIDILITIND)29.3%27.4%29.3%29.8%
Camlin Fine Sciences ($CAMLINFIN)9.9%11.1%17.8%24.2%29.5%
Plastiblends India ($PLASTIBLEN)19.4%18.3%15.8%24.0%
Keltech Energies ($KELENRG)11.5%15.3%12.8%23.0%
 
Median (35 companies)14.8%14.7%14.8%11.2%21.7%
Vinati Organics ($VINATIORGA)31.4%29.6%26.2%30.6%34.8%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Cochin Minerals & Rutile ($COCHINM)0.7x-0.0x-0.0x32.3x
Alkali Metals ($ALKALI)4.3x5.1x11.6x0.0x
Kiri Industries ($KIRIINDUS)3.9x8.2x31.3x10.6x
Vikas Globalone ($VIKASGLOB)0.0x2.5x4.4x4.9x
Jayant Agro-Organics ($JAYAGROGN)3.9x2.8x3.1x4.6x6.5x
 
Median (28 companies)1.5x1.5x1.5x1.7x1.1x
Vinati Organics ($VINATIORGA)1.1x1.5x1.7x0.8x0.2x


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