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Balaji Amines EBITDA jumped on 16.5% in 2015 and Revenue increased slightly on 1.4%

20-05-2015 • About Balaji Amines ($BALAMINES) • By InTwits

Balaji Amines reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Balaji Amines has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's a lot of higher than industry average of 7.4%.
  • CAPEX is quite volatile: 81.0 in FY2015, 530 in FY2014, 899 in FY2013, 595 in FY2012, 573 in FY2011
  • The company has highly profitable business model: ROIC is at 16.5%
  • It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Balaji Amines ($BALAMINES) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue3,4684,4955,1186,1016,1881.4%
EBITDA6337937938741,01816.5%
Net Income2663563123353432.3%
Balance Sheet
Cash1211042340.9%
Short Term Debt661,1111,0561,3951,4856.5%
Long Term Debt1,5898611,037860748-13.0%
Cash flow
Capex57359589953081-84.7%
Ratios
Revenue growth-53.0%29.6%13.9%19.2%1.4%
EBITDA growth33.6%25.3%0.1%10.1%16.5%
EBITDA Margin18.3%17.6%15.5%14.3%16.4%2.1%
Net Income Margin7.7%7.9%6.1%5.5%5.5%0.0%
CAPEX, % of revenue16.5%13.2%17.6%8.7%1.3%-7.4%
ROIC20.3%19.3%16.1%15.6%16.5%1.0%
ROE26.5%27.7%19.7%18.0%16.0%-2.0%
Net Debt/EBITDA2.6x2.5x2.6x2.6x2.2x-0.4x

Revenue and profitability


Balaji Amines's Revenue increased slightly on 1.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.1 pp from 14.3% to 16.4% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 the company had CAPEX/Revenue of 1.3%. Balaji Amines showed big decline in CAPEX/Revenue of 11.9 pp from 13.2% in FY2012 to 1.3% in FY2015. For the last three years the average CAPEX/Revenue was 9.2%.

Return on investment


The company operates at good ROIC (16.52%) and ROE (15.98%). ROIC increased slightly on 0.95 pp from 15.6% to 16.5% in FY2015. ROE decreased on 2.0 pp from 18.0% to 16.0% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.4x from 2.6x to 2.2x in FY2015. Debt decreased slightly on 0.96% in FY2015 while cash jumped on 341% in FY2015.

Valuation


The company's trades at EV/EBITDA 5.4x and P/E 9.7x while industy averages are 10.5x and 26.1x. Balaji Amines's EV/(EBITDA-CAPEX) is 5.9x with the industry average at 4.7x.

Appendix 1: Peers in Commodity Chemicals


Below you can find Balaji Amines benchmarking vs. other companies in Commodity 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
Shree Hari Chemicals Export ($SHHARICH)-52.2%-2.5%-78.0%299.5%
Jindal Poly Films ($JINDPOLBBPH)-66.5%-17.2%-6.3%131.7%
Bodal Chemicals ($BODALCHEM)-51.3%5.4%-12.6%80.0%
Kanoria Chemicals & Industries ($KANORICHEM)-22.3%-40.7%27.2%47.9%
Camphor & Allied Products ($CAMPHOR)-49.0%-6.7%7.2%42.7%
 
Median (35 companies)-39.8%15.5%10.9%10.6%5.6%
Balaji Amines ($BALAMINES)29.6%13.9%19.2%1.4%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Shree Hari Chemicals Export ($SHHARICH)8.3%1.8%-19.4%29.4%
Chemfab Alkalis ($CHEMFALKAL)19.0%22.3%32.9%24.2%19.8%
Aditya Birla Chemicals (India) ($ABCIL)33.6%26.8%27.1%23.6%21.9%
Bodal Chemicals ($BODALCHEM)10.6%1.8%5.6%20.4%
Alkyl Amines Chemicals ($ALKYLAMINE)13.3%15.9%16.0%19.0%18.3%
 
Median (31 companies)12.1%10.9%8.3%8.5%9.8%
Balaji Amines ($BALAMINES)18.3%17.6%15.5%14.3%16.4%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Chemfab Alkalis ($CHEMFALKAL)5.1%2.2%15.8%55.6%
Aditya Birla Chemicals (India) ($ABCIL)5.9%136.9%24.2%30.8%15.0%
Jindal Poly Films ($JINDPOLBBPH)2.9%6.9%2.1%27.5%
Polyplex Corporation ($POLYPLEX)6.0%10.7%41.3%19.2%
Kanoria Chemicals & Industries ($KANORICHEM)12.9%25.1%6.0%13.4%
 
Median (19 companies)5.6%5.2%6.3%5.4%8.6%
Balaji Amines ($BALAMINES)16.5%13.2%17.6%8.7%1.3%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Riddhi Siddhi Gluco Biols ($RIDDHI)-0.2%-1.3%-0.6%61.1%
Bodal Chemicals ($BODALCHEM)-1.3%3.3%39.0%
Elantas Beck India ($ELANTAS)17.5%20.4%33.9%31.0%
Alkyl Amines Chemicals ($ALKYLAMINE)10.3%16.0%18.7%25.0%23.7%
Aarti Industries ($AARTIIND)13.1%15.9%19.1%17.2%17.9%
 
Median (59 companies)10.5%9.0%9.5%8.9%13.5%
Balaji Amines ($BALAMINES)20.3%19.3%16.1%15.6%16.5%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
India Glycols ($INDIAGLYCO)8.2x4.8x3.7x8.5x
Godrej Industries ($GODREJIND)6.8x9.9x5.7x7.9x
Polyplex Corporation ($POLYPLEX)0.6x0.9x6.8x7.1x
Link Pharma Chem ($LINKPH)71.1x3.4x4.1x6.2x
Refnol Resins & Chemicals ($REFNOL)4.1x5.6x0.0x
 
Median (41 companies)2.4x2.6x3.2x0.8x0.6x
Balaji Amines ($BALAMINES)2.6x2.5x2.6x2.6x2.2x


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