Skm Egg Products Export (India) reports 64.7% Net Income decline and 4.9 pp EBITDA Margin decline from 16.8% to 11.9%
20-05-2015 • About Skm Egg Products Export (India) (
$SKMEGGPROD) • By InTwits
Skm Egg Products Export (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.9% in FY2015, 16.8% in FY2014, 11.5% in FY2013, 1.7% in FY2012, 2.7% in FY2011
- Skm Egg Products Export (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 0.6%.
- CAPEX is quite volatile: 23.3 in FY2015, 25.2 in FY2014, 7.0 in FY2013, 4.4 in FY2012, 52.9 in FY2011
- The company has highly profitable business model: ROIC is at 29.4%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Skm Egg Products Export (India) ($SKMEGGPROD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,261 | 1,425 | 2,151 | 2,655 | 2,921 | 10.0% |
| EBITDA | 34 | 25 | 246 | 447 | 348 | -22.2% |
| Net Income | -90 | -110 | 10 | 277 | 98 | -64.7% |
Balance Sheet
|
|---|
| Cash | 26 | 49 | 51 | 83 | 59 | -28.8% |
| Short Term Debt | | 397 | 368 | 308 | 371 | 20.7% |
| Long Term Debt | 916 | 500 | 511 | 44 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 53 | 4 | 7 | 25 | 23 | -7.4% |
Ratios
|
|---|
| Revenue growth | -63.6% | 13.0% | 51.0% | 23.4% | 10.0% | |
| EBITDA growth | -75.4% | -27.1% | 898.3% | 81.6% | -22.2% | |
| EBITDA Margin | 2.7% | 1.7% | 11.5% | 16.8% | 11.9% | -4.9% |
| Net Income Margin | -7.2% | -7.7% | 0.5% | 10.4% | 3.4% | -7.1% |
| CAPEX, % of revenue | 4.2% | 0.3% | 0.3% | 0.9% | 0.8% | -0.1% |
| ROIC | -2.4% | -3.4% | 4.8% | 36.3% | 29.4% | -6.8% |
| ROE | -16.8% | -25.3% | 2.6% | 64.9% | 17.0% | -47.9% |
| Net Debt/EBITDA | 26.3x | 34.3x | 3.4x | 0.6x | 0.9x | 0.3x |
Revenue and profitability
The company's Revenue increased on 10.0% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.77 pp from 2.2% to 3.0% in FY2015.
Net Income marign decreased on 7.1 pp from 10.4% to 3.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Skm Egg Products Export (India) had CAPEX/Revenue of 0.80%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.69%.
Return on investment
The company operates at high and attractive ROIC (29.44%) while ROE is a bit lower (17.04%). ROIC decreased on 6.8 pp from 36.3% to 29.4% in FY2015. ROE dropped on 47.9 pp from 64.9% to 17.0% in FY2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 0.6x to 0.9x in FY2015. Debt increased on 5.6% in FY2015 while cash dropped on 28.8% in FY2015.
Valuation
The company's trades at EV/EBITDA 11.8x and P/E 38.9x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 12.7x with the industry average at 4.7x.
Appendix 1: Peers in Other Food Products
Below we provide Skm Egg Products Export (India) benchmarking against other companies in Other Food Products 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Waterbase ($WATERBASE) | -86.0% | 124.1% | 51.8% | 45.3% | |
| |
|---|
| Median (1 company) | -86.0% | 124.1% | 51.8% | 45.3% | |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | | 13.0% | 51.0% | 23.4% | 10.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chordia Food Products ($CHORDIA) | | | | | 8.6% |
| |
|---|
| Median (1 company) | 11.3% | 10.7% | 7.7% | 10.4% | 8.6% |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 2.7% | 1.7% | 11.5% | 16.8% | 11.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Waterbase ($WATERBASE) | 0.3% | 2.4% | 1.6% | 0.4% | |
| |
|---|
| Median (1 company) | 0.3% | 2.4% | 1.6% | 0.4% | |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 4.2% | 0.3% | 0.3% | 0.9% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Waterbase ($WATERBASE) | 2.9% | 10.8% | 11.3% | 22.5% | |
| Saboo Sodium Chloro ($SABOOSOD) | 4.9% | -0.4% | | | |
| Lactose (India) ($LACTOSE) | 5.2% | | | | |
| Kothari Fermentation & Biochem ($KFBL) | | | | | |
| Chordia Food Products ($CHORDIA) | | 10.2% | | | |
| |
|---|
| Median (5 companies) | 4.9% | 10.2% | 11.3% | 22.5% | |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | -2.4% | -3.4% | 4.8% | 36.3% | 29.4% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Waterbase ($WATERBASE) | 3.8x | 1.3x | 1.3x | 0.1x | |
| Saboo Sodium Chloro ($SABOOSOD) | 6.1x | 6.2x | 0.0x | 0.0x | |
| Kothari Fermentation & Biochem ($KFBL) | | | 0.0x | 0.0x | |
| Lactose (India) ($LACTOSE) | 2.5x | 0.0x | 2.0x | 0.0x | |
| |
|---|
| Median (4 companies) | 3.8x | 1.1x | 0.6x | 0.0x | 0.0x |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 26.3x | 34.3x | 3.4x | 0.6x | 0.9x |
