Sukhjit Starch & Chemicals reports 31.0% EBITDA growth and 4.9% Revenue growth
20-05-2015 • About Sukhjit Starch & Chemicals (
$SUKHJITS) • By InTwits
Sukhjit Starch & Chemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sukhjit Starch & Chemicals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's a lot of higher than industry average of 7.4%.
- CAPEX is quite volatile: 69.0 in FY2015, 89.8 in FY2014, 23.5 in FY2013, 4,831 in FY2012, 1,119 in FY2011
- The company has highly profitable business model: ROIC is at 13.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sukhjit Starch & Chemicals ($SUKHJITS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,447 | 3,586 | 4,223 | 5,084 | 5,331 | 4.9% |
| EBITDA | 619 | 436 | 498 | 489 | 641 | 31.0% |
| Net Income | 378 | 209 | 208 | 159 | 229 | 44.6% |
Balance Sheet
|
|---|
| Cash | 47 | 5 | 21 | 79 | 197 | 148.2% |
| Short Term Debt | 608 | 542 | 853 | 1,042 | 1,022 | -2.0% |
| Long Term Debt | 304 | 556 | 741 | 718 | 628 | -12.5% |
Cash flow
|
|---|
| Capex | 316 | 563 | 397 | 276 | 287 | 4.1% |
Ratios
|
|---|
| Revenue growth | -45.4% | 4.0% | 17.8% | 20.4% | 4.9% | |
| EBITDA growth | 95.4% | -29.6% | 14.2% | -1.7% | 31.0% | |
| EBITDA Margin | 18.0% | 12.2% | 11.8% | 9.6% | 12.0% | 2.4% |
| Net Income Margin | 11.0% | 5.8% | 4.9% | 3.1% | 4.3% | 1.2% |
| CAPEX, % of revenue | 9.2% | 15.7% | 9.4% | 5.4% | 5.4% | -0.0% |
| ROIC | 25.5% | 14.0% | 13.6% | 10.4% | 13.5% | 3.1% |
| ROE | 33.2% | 15.1% | 13.4% | 9.3% | 12.3% | 3.0% |
| Net Debt/EBITDA | 1.4x | 2.5x | 3.2x | 3.4x | 2.3x | -1.2x |
Revenue and profitability
The company's Revenue increased on 4.9% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 9.6% to 12.0% in FY2015.
Net Income marign increased slightly on 1.2 pp from 3.1% to 4.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sukhjit Starch & Chemicals's CAPEX/Revenue was 5.4% in FY2015. CAPEX/Revenue dropped on 10.3 pp from 15.7% in FY2012 to 5.4% in FY2015. Average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at good ROIC (13.52%) and ROE (12.30%). ROIC increased on 3.1 pp from 10.4% to 13.5% in FY2015. ROE increased on 3.0 pp from 9.3% to 12.3% in FY2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 3.4x to 2.3x in FY2015. Debt decreased on 6.3% in FY2015 while cash jumped on 148% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.2x and P/E 8.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 9.4x with the industry average at 4.7x.
Appendix 1: Peers in Commodity Chemicals
Below you can find Sukhjit Starch & Chemicals 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 ($CAMPHOR) | -49.0% | -6.7% | 7.2% | 42.7% | |
| |
|---|
| Median (35 companies) | -39.8% | 19.0% | 10.9% | 10.6% | 5.6% |
|---|
| Sukhjit Starch & Chemicals ($SUKHJITS) | | 4.0% | 17.8% | 20.4% | 4.9% |
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 ($ALKYLAMINE) | 13.3% | 15.9% | 16.0% | 19.0% | 18.3% |
| |
|---|
| Median (31 companies) | 12.1% | 10.9% | 8.3% | 8.5% | 10.1% |
|---|
| Sukhjit Starch & Chemicals ($SUKHJITS) | 18.0% | 12.2% | 11.8% | 9.6% | 12.0% |
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 ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | |
| |
|---|
| Median (19 companies) | 5.6% | 5.2% | 6.3% | 5.9% | 8.6% |
|---|
| Sukhjit Starch & Chemicals ($SUKHJITS) | 9.2% | 15.7% | 9.4% | 5.4% | 5.4% |
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 ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| |
|---|
| Median (59 companies) | 10.5% | 9.0% | 9.5% | 8.9% | 16.5% |
|---|
| Sukhjit Starch & Chemicals ($SUKHJITS) | 25.5% | 14.0% | 13.6% | 10.4% | 13.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| India Glycols ($INDIAGLYCO) | 8.2x | 4.8x | 3.7x | 8.5x | |
| Godrej Industries ($GODREJIND) | 6.8x | 9.9x | 5.7x | 7.9x | |
| Polyplex Corporation ($POLYPLEX) | 0.6x | 0.9x | 6.8x | 7.1x | |
| Link Pharma Chem ($LINKPH) | 71.1x | 3.4x | 4.1x | 6.2x | |
| Refnol Resins & Chemicals ($REFNOL) | | | 4.1x | 5.6x | 0.0x |
| |
|---|
| Median (41 companies) | 2.5x | 2.6x | 3.0x | 0.8x | 0.6x |
|---|
| Sukhjit Starch & Chemicals ($SUKHJITS) | 1.4x | 2.5x | 3.2x | 3.4x | 2.3x |
