Astec Lifesciences Limited Net Income surged on 70.3% in 2015 and Revenue jumped on 28.9%
18-05-2015 • About Astec Lifesciences Limited (
$ASTEC) • By InTwits
Astec Lifesciences Limited reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 20.3% in FY2015 vs. 17.1% in FY2014 vs. 14.5% in FY2011
- Astec Lifesciences Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.2%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 201 in FY2015, 190 in FY2014, 260 in FY2013, 468 in FY2012, 357 in FY2011
- The company has highly profitable business model: ROIC is at 19.1%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Astec Lifesciences Limited ($ASTEC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,094 | 1,122 | 1,748 | 2,070 | 2,669 | 28.9% |
| EBITDA | 159 | 174 | 292 | 354 | 543 | 53.2% |
| Net Income | 49 | 14 | 60 | 87 | 148 | 70.3% |
Balance Sheet
|
|---|
| Cash | 7 | 9 | 20 | 8 | 7 | -10.3% |
| Short Term Debt | 412 | 601 | 514 | 646 | 805 | 24.5% |
| Long Term Debt | 24 | 118 | 215 | 181 | 132 | -27.1% |
Cash flow
|
|---|
| Capex | 357 | 468 | 260 | 190 | 201 | 5.6% |
Ratios
|
|---|
| Revenue growth | -65.8% | 2.6% | 55.7% | 18.4% | 28.9% | |
| EBITDA growth | -35.1% | 9.7% | 67.3% | 21.4% | 53.2% | |
| EBITDA Margin | 14.5% | 15.5% | 16.7% | 17.1% | 20.3% | 3.2% |
| Net Income Margin | 4.5% | 1.2% | 3.4% | 4.2% | 5.5% | 1.3% |
| CAPEX, % of revenue | 32.6% | 41.7% | 14.9% | 9.2% | 7.5% | -1.7% |
| ROIC | 7.2% | 5.6% | 9.7% | 10.7% | 19.1% | 8.4% |
| ROE | 5.2% | 1.4% | 5.8% | 7.9% | 11.9% | 4.0% |
| Net Debt/EBITDA | 2.7x | 4.1x | 2.4x | 2.3x | 1.7x | -0.6x |
Revenue and profitability
The company's Revenue surged on 28.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from 4.1% to 10.0% in FY2015.
Net Income marign increased slightly on 1.3 pp from 4.2% to 5.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Astec Lifesciences Limited's CAPEX/Revenue was 7.5% in FY2015. Astec Lifesciences Limited showed big decline in CAPEX/Revenue of 34.2 pp from 41.7% in FY2012 to 7.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 10.5%.
Return on investment
The company operates at good ROIC (19.10%) while ROE is low (11.88%). ROIC increased on 8.4 pp from 10.7% to 19.1% in FY2015. ROE increased on 4.0 pp from 7.9% to 11.9% in FY2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.3x to 1.7x in FY2015. Debt surged on 13.2% in FY2015 while cash dropped on 10.3% in FY2015.
Valuation
Astec Lifesciences Limited's trades at EV/EBITDA 7.5x and P/E 21.3x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 11.9x with the industry average at 4.7x.
Appendix 1: Peers in Agrochemicals
Below we provide Astec Lifesciences Limited benchmarking against other companies in Agrochemicals 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 |
|---|
| Insecticides (India) ($INSECTICID) | -59.4% | 15.9% | 18.2% | 40.1% | |
| P.I.Industries ($PIIND) | -69.9% | 22.2% | 31.0% | 38.9% | |
| Monsanto India ($MONSANTO) | | 2.9% | 16.8% | 33.6% | -4.6% |
| Rallis India ($RALLIS) | | 17.4% | 14.4% | 19.8% | 4.3% |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | -76.4% | 15.2% | 113.6% | 18.4% | |
| |
|---|
| Median (7 companies) | -64.6% | 15.9% | 18.2% | 19.8% | -4.6% |
|---|
| Astec Lifesciences Limited ($ASTEC) | | 2.6% | 55.7% | 18.4% | 28.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 15.5% | 17.0% | 15.8% | 18.4% | |
| Rallis India ($RALLIS) | 18.2% | 16.2% | 14.7% | 15.2% | 15.4% |
| Insecticides (India) ($INSECTICID) | 9.9% | 11.0% | 11.3% | 10.6% | |
| Excel Industries ($EXCELINDUS) | 12.6% | 8.5% | 10.9% | 9.8% | |
| Monsanto India ($MONSANTO) | 18.3% | 15.1% | 16.4% | 7.3% | 20.9% |
| |
|---|
| Median (6 companies) | 12.6% | 11.0% | 11.3% | 10.2% | 15.4% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 14.5% | 15.5% | 16.7% | 17.1% | 20.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Excel Industries ($EXCELINDUS) | 3.7% | 7.6% | 5.7% | 8.5% | |
| P.I.Industries ($PIIND) | 13.5% | 13.4% | 13.2% | 4.0% | |
| Insecticides (India) ($INSECTICID) | 13.3% | 10.7% | 8.1% | 3.9% | |
| Rallis India ($RALLIS) | 12.1% | 4.5% | 3.2% | 3.4% | 3.3% |
| Monsanto India ($MONSANTO) | 3.3% | 3.3% | 2.0% | 1.9% | 1.7% |
| |
|---|
| Median (5 companies) | 4.0% | 6.0% | 5.7% | 3.9% | 2.6% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 32.6% | 41.7% | 14.9% | 9.2% | 7.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 22.4% | 23.9% | 22.5% | 31.3% | |
| Rallis India ($RALLIS) | 32.6% | 26.3% | 25.3% | 28.3% | 25.4% |
| Insecticides (India) ($INSECTICID) | 23.5% | 19.2% | 15.6% | 15.7% | |
| Excel Industries ($EXCELINDUS) | 13.8% | 8.5% | 14.2% | 11.9% | |
| Monsanto India ($MONSANTO) | 15.1% | 12.4% | 15.3% | 7.8% | 29.2% |
| |
|---|
| Median (9 companies) | 15.1% | 8.5% | 14.2% | 15.7% | 27.3% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 7.2% | 5.6% | 9.7% | 10.7% | 19.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Insecticides (India) ($INSECTICID) | 0.8x | 2.7x | 3.0x | 2.7x | |
| Excel Industries ($EXCELINDUS) | 1.4x | 2.7x | 1.6x | 2.3x | |
| P.I.Industries ($PIIND) | 2.1x | 1.6x | 1.2x | 0.3x | |
| Rallis India ($RALLIS) | 0.5x | 0.7x | 0.1x | 0.2x | 0.4x |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 13.9x | 163.2x | 3.6x | 0.0x | |
| |
|---|
| Median (7 companies) | 1.1x | 2.7x | 3.0x | 0.2x | 0.4x |
|---|
| Astec Lifesciences Limited ($ASTEC) | 2.7x | 4.1x | 2.4x | 2.3x | 1.7x |
