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Mmtc reports 100% EBITDA decline and 1.1 pp EBITDA Margin decline from 1.1% to -0%

21-05-2015 • About Mmtc ($MMTC) • By InTwits

Mmtc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Mmtc is a company in decline: FY2015 revenue growth was -15.0%, 5 years revenue CAGR was -10.6%
  • EBITDA Margin is relatively stable: -0.0% in FY2015 vs. 1.1% in FY2014 vs. 0.2% in FY2011
  • EBITDA Margin is quite volatile: -0.0% in FY2015, 1.1% in FY2014, 0.3% in FY2013, 0.1% in FY2012, 0.2% in FY2011
  • Mmtc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
  • The company has unprofitable business model: ROIC is at -1.2%
  • It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Mmtc ($MMTC) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue696,130670,224328,856281,423239,316-15.0%
SG&A29
EBITDA1,0647561,0343,040-2-100.1%
Net Income261573-1,107-182-425
Balance Sheet
Cash10,8925,1555,6424,1064,1811.8%
Short Term Debt70,81641,16619,4654,6493,863-16.9%
Long Term Debt864992969930502-46.0%
Cash flow
Capex47522024621123511.4%
Ratios
Revenue growth66.3%-3.7%-50.9%-14.4%-15.0%
EBITDA growth-5.1%-29.0%36.8%193.9%-100.1%
EBITDA Margin0.2%0.1%0.3%1.1%-0.0%-1.1%
Net Income Margin0.0%0.1%-0.3%-0.1%-0.2%-0.1%
SG&A, % of revenue0.0%0.0%
CAPEX, % of revenue0.1%0.0%0.1%0.1%0.1%0.0%
ROIC1.0%0.7%1.6%9.7%-1.2%-10.9%
ROE1.7%3.5%-6.9%-1.2%-3.0%-1.8%
Net Debt/EBITDA57.1x48.9x14.3x0.5x-0.5x

Revenue and profitability


Mmtc's Revenue dropped on 15.0% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 1.1% to -0% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


Mmtc's CAPEX/Revenue was 0.098% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.083%.

Return on investment


The company operates at negative ROIC (-1.21%) and ROE (-3.02%). ROIC dropped on 10.9 pp from 9.7% to -1.2% in FY2015. ROE decreased slightly on 1.8 pp from -1.2% to -3.0% in FY2015.

Leverage (Debt)


Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is . Net Debt / EBITDA dropped on 0.5x from 0.5x to in FY2015. Debt dropped on 21.8% in FY2015 while cash increased slightly on 1.8% in FY2015.

Appendix 1: Peers in Comm.Trading & Distribution


Below we provide Mmtc benchmarking against other companies in Comm.Trading & Distribution 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
Risa International ($RISAINTL)285.4%4,724.7%
Shri Krishna Prasadam ($SKP)69.6%57.3%1,074.7%
Parker Agrochem Exports ($PARKERAC)-87.9%-77.2%1,542.3%39.1%
Ennore Coke ($ENNORE)62.1%-5.0%-45.5%34.0%
Gagan Polycot India ($GAGANPO)-23.2%-59.4%76.3%18.2%
 
Median (18 companies)-33.6%14.0%13.4%13.4%13.5%
Mmtc ($MMTC)-3.7%-50.9%-14.4%-15.0%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Ptl Enterprises ($PTL)27.6%26.6%22.7%21.6%18.5%
Maxwell Industries ($MAXWELL)6.7%9.9%6.7%9.0%
Cravatex ($CRAVATEX)12.7%5.8%7.4%7.0%
Kothari Products ($KOTHARIPRO)3.3%5.4%4.4%5.9%
Risa International ($RISAINTL)-2.3%3.3%
 
Median (13 companies)3.0%2.9%2.8%2.2%11.0%
Mmtc ($MMTC)0.2%0.1%0.3%1.1%-0.0%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Maxwell Industries ($MAXWELL)1.2%0.9%1.9%2.4%
Ptl Enterprises ($PTL)1.0%5.0%4.5%2.4%4.2%
Redington (India) ($REDINGTON)0.3%0.2%0.7%0.2%
Kothari Products ($KOTHARIPRO)0.9%2.5%0.1%0.2%
Risa International ($RISAINTL)0.0%0.0%
 
Median (5 companies)0.9%0.9%0.4%0.2%4.2%
Mmtc ($MMTC)0.1%0.0%0.1%0.1%0.1%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Kothari Products ($KOTHARIPRO)7.4%23.4%20.0%28.3%
Ptl Enterprises ($PTL)18.1%18.5%19.5%21.1%22.1%
Redington (India) ($REDINGTON)15.5%17.2%16.0%16.3%
Risa International ($RISAINTL)-0.2%14.8%
Bombay Cycle & Motor Agency ($BOMBCYC)15.1%13.5%
 
Median (51 companies)2.8%4.8%5.2%9.6%22.1%
Mmtc ($MMTC)1.0%0.7%1.6%9.7%-1.2%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Ph Capital ($PHCAP)18.4x
Unitech International ($UNITINT)5.1x
Vipul Dye Chem ($VIPULDYE)2.9x3.9x5.1x3.9x
Maxwell Industries ($MAXWELL)5.7x3.7x5.8x3.5x
Vadilal Enterprises ($VADILENT)1.3x2.3x4.0x2.3x
 
Median (27 companies)3.0x1.7x1.8x0.0x0.0x
Mmtc ($MMTC)57.1x48.9x14.3x0.5x