Trending stocks

Solar Industries India EBITDA jumped on 28.6% in 2015 and Revenue surged on 19.3%

25-05-2015 • About Solar Industries India ($SOLARINDS) • By InTwits

Solar Industries India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is relatively stable: 19.3% in FY2015 vs. 17.9% in FY2014 vs. 18.1% in FY2011
  • Solar Industries India has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.9%. At the same time it's a lot of higher than industry average of 4.8%.
  • CAPEX is quite volatile: 584 in FY2015, 874 in FY2014, 1,593 in FY2013, 545 in FY2012, 499 in FY2011
  • The company has highly profitable business model: ROIC is at 18.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Solar Industries India ($SOLARINDS) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue6,8099,67611,21811,33013,51919.3%
EBITDA1,2341,7861,9602,0302,60928.6%
Net Income7561,0121,1631,1841,47424.5%
Balance Sheet
Cash1491385151,330373-72.0%
Short Term Debt1,1702,1373,0483,3121,725-47.9%
Long Term Debt4458266731,5241,5592.3%
Cash flow
Capex9651,2611,1121,3891,3950.4%
Ratios
Revenue growth-58.4%42.1%15.9%1.0%19.3%
EBITDA growth41.8%44.7%9.8%3.6%28.6%
EBITDA Margin18.1%18.5%17.5%17.9%19.3%1.4%
Net Income Margin11.1%10.5%10.4%10.5%10.9%0.4%
CAPEX, % of revenue14.2%13.0%9.9%12.3%10.3%-1.9%
ROIC25.5%25.9%20.3%16.3%18.4%2.1%
ROE26.0%28.1%23.8%19.2%20.5%1.3%
Net Debt/EBITDA1.2x1.6x1.6x1.7x1.1x-0.6x

Revenue and profitability


Solar Industries India's Revenue surged on 19.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 Solar Industries India had CAPEX/Revenue of 10.3%. CAPEX/Revenue decreased on 2.7 pp from 13.0% in FY2012 to 10.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 10.8%.To maintain this fast growth Solar Industries India invested a large share of EBITDA (53.4%) to CAPEX.

Return on investment


The company operates at high and attractive ROE (20.51%) while ROIC is a bit lower (18.41%). ROIC increased on 2.1 pp from 16.3% to 18.4% in FY2015. ROE increased slightly on 1.3 pp from 19.2% to 20.5% in FY2015.

Leverage (Debt)


Debt level is 1.1x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 1.7x to 1.1x in FY2015. Debt dropped on 32.1% in FY2015 while cash dropped on 72.0% in FY2015.

Appendix 1: Peers in Specialty Chemicals


Below we provide Solar Industries India benchmarking against other companies in Specialty Chemicals 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
Dai-Ichi Karkaria ($DAICHI)20.7%31.4%45.4%22.8%
Dynemic Products ($DYNPRO)-55.8%27.4%-0.0%40.6%
Camlin Fine Sciences ($CAMLINFIN)95.3%11.4%36.1%9.8%
Sudarshan Chemical Industries ($SUDARSCHEM)-49.4%10.5%9.1%28.2%
Vinati Organics ($VINATIORGA)38.7%23.6%25.9%10.9%
 
Median (27 companies)-49.8%19.8%11.4%13.7%9.8%
Solar Industries India ($SOLARINDS)42.1%15.9%1.0%19.3%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Vinati Organics ($VINATIORGA)21.7%21.7%21.8%22.7%24.9%
Adi Finechem ($ADIFINCHM)18.2%15.1%14.0%22.1%16.5%
Ultramarine & Pigments ($ULTRAMAR)20.1%18.0%15.5%17.4%
Anil ($ANILLTD)17.4%18.1%16.9%17.1%
Dynemic Products ($DYNPRO)17.3%13.6%11.2%16.0%
 
Median (25 companies)11.2%10.6%11.2%10.6%14.8%
Solar Industries India ($SOLARINDS)18.1%18.5%17.5%17.9%19.3%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Adi Finechem ($ADIFINCHM)8.2%7.3%4.8%12.6%16.9%
Nitta Gelatin India ($NITTAGELA)21.3%8.8%4.6%8.5%
Meghmani Organics ($MEGH)9.9%10.2%10.3%7.9%4.6%
Camlin Fine Sciences ($CAMLINFIN)7.5%4.3%5.7%7.1%5.1%
Kiri Industries ($KIRIINDUS)5.3%5.4%4.5%5.6%
 
Median (18 companies)7.0%4.9%4.5%4.3%4.8%
Solar Industries India ($SOLARINDS)14.2%13.0%9.9%12.3%10.3%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Adi Finechem ($ADIFINCHM)27.6%30.6%29.8%46.4%26.3%
Vinati Organics ($VINATIORGA)31.4%29.6%26.2%30.6%34.8%
Pidilite Industries ($PIDILITIND)29.3%27.4%29.3%29.8%29.0%
Camlin Fine Sciences ($CAMLINFIN)9.9%11.1%17.8%24.2%29.5%
Plastiblends India ($PLASTIBLEN)19.4%18.3%15.8%24.0%
 
Median (35 companies)14.8%14.7%14.8%11.2%26.3%
Solar Industries India ($SOLARINDS)25.5%25.9%20.3%16.3%18.4%


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Cochin Minerals & Rutile ($COCHINM)0.7x-0.0x-0.0x32.3x
Alkali Metals ($ALKALI)4.3x5.1x11.6x0.0x
Kiri Industries ($KIRIINDUS)3.9x8.2x31.3x10.6x
Vikas Globalone ($VIKASGLOB)0.0x2.5x4.4x4.9x
Jayant Agro-Organics ($JAYAGROGN)3.9x2.8x3.1x4.6x6.5x
 
Median (28 companies)1.5x1.4x1.5x1.7x0.0x
Solar Industries India ($SOLARINDS)1.2x1.6x1.6x1.7x1.1x


Similar news

25-05-2015 Trigyn Technologies Net Income dropped on 69.7% in 2015 and EBITDA Margin decreased on 2.1 pp from 9.5% to 7.4%

25-05-2015 Heidelbergcement India reports 52.5% EBITDA decline while 2.5% Revenue growth

25-05-2015 Essar Oil Debt surged on 28.9% in 2015 while EBITDA decreased on 6.3%

25-05-2015 Jyothy Laboratories Net Income jumped on 48.7% in 2015 and EBITDA Margin increased slightly on 0.89 pp from 11.9% to 12.8%

25-05-2015 Thangamayil Jewellery Net Debt / EBITDA surged on 49.4x from 11.9x to 61.2x in 2015 while Debt dropped on 23.3%