Andhra Sugars EBITDA dropped on 49.1% in 2015 and EBITDA Margin decreased on 7.0 pp from 14.2% to 7.2%
26-05-2015 • About Andhra Sugars (
$ANDHRSUGAR) • By InTwits
Andhra Sugars reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 7.2% in FY2015 vs. 14.2% in FY2014 vs. 16.8% in FY2011
- Andhra Sugars has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 489 in FY2015, 606 in FY2014, 926 in FY2013, 189 in FY2012, 243 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.0%
- It operates with high leverage: Net Debt/EBITDA is 3.9x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Andhra Sugars ($ANDHRSUGAR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 8,542 | 11,432 | 12,322 | 10,991 | 11,075 | 0.8% |
| EBITDA | 1,437 | 2,261 | 2,354 | 1,563 | 795 | -49.1% |
| Net Income | 578 | 1,092 | 836 | 516 | -49 | -109.4% |
Balance Sheet
|
|---|
| Cash | 247 | 177 | 266 | 231 | 275 | 19.1% |
| Short Term Debt | 2,140 | 2,024 | 1,426 | 830 | 1,874 | 125.7% |
| Long Term Debt | 1,354 | 1,359 | 1,361 | 1,576 | 1,485 | -5.8% |
Cash flow
|
|---|
| Capex | 750 | 604 | 523 | 354 | 448 | 26.5% |
Ratios
|
|---|
| Revenue growth | -34.8% | 33.8% | 7.8% | -10.8% | 0.8% | |
| EBITDA growth | -22.7% | 57.3% | 4.1% | -33.6% | -49.1% | |
| EBITDA Margin | 16.8% | 19.8% | 19.1% | 14.2% | 7.2% | -7.0% |
| Net Income Margin | 6.8% | 9.6% | 6.8% | 4.7% | -0.4% | -5.1% |
| CAPEX, % of revenue | 8.8% | 5.3% | 4.2% | 3.2% | 4.0% | 0.8% |
| ROIC | 10.1% | 15.8% | 15.4% | 8.5% | 3.0% | -5.5% |
| ROE | 12.2% | 20.5% | 13.8% | 7.9% | -0.7% | -8.7% |
| Net Debt/EBITDA | 2.3x | 1.4x | 1.1x | 1.4x | 3.9x | 2.5x |
Revenue and profitability
The company's Revenue increased slightly on 0.76% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.71 pp from 7.5% to 8.2% in FY2015.
Net Income marign decreased on 5.1 pp from 4.7% to -0.44% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Andhra Sugars's CAPEX/Revenue was 4.0% in FY2015. Andhra Sugars's CAPEX/Revenue decreased slightly on 1.2 pp from 5.3% in FY2012 to 4.0% in FY2015. It's average CAPEX/Revenue for the last three years was 3.8%.Andhra Sugars invested a large share of EBITDA (56.3%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (2.99%) and negative ROE (-0.74%). ROIC decreased on 5.5 pp from 8.5% to 3.0% in FY2015. ROE decreased on 8.7 pp from 7.9% to -0.74% in FY2015.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA jumped on 2.5x from 1.4x to 3.9x in FY2015. Debt surged on 39.6% in FY2015 while cash surged on 19.1% in FY2015.
Appendix 1: Peers in Commodity Chemicals
Below you can find Andhra Sugars 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 ($CAMPHOR) | -49.0% | -6.7% | 7.2% | 42.7% | |
| |
|---|
| Median (35 companies) | -37.9% | 15.5% | 11.4% | 10.7% | 3.1% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | | 33.8% | 7.8% | -10.8% | 0.8% |
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 ($ALKYLAMINE) | 13.3% | 15.9% | 16.0% | 19.0% | 18.3% |
| |
|---|
| Median (31 companies) | 12.1% | 10.9% | 8.3% | 8.5% | 7.6% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 16.8% | 19.8% | 19.1% | 14.2% | 7.2% |
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 ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | |
| |
|---|
| Median (19 companies) | 5.6% | 5.2% | 7.2% | 5.9% | 4.3% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 8.8% | 5.3% | 4.2% | 3.2% | 4.0% |
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 ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| |
|---|
| Median (59 companies) | 10.7% | 9.0% | 9.5% | 9.9% | 15.0% |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 10.1% | 15.8% | 15.4% | 8.5% | 3.0% |
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 ($REFNOL) | | | 4.1x | 5.6x | 0.0x |
| |
|---|
| Median (41 companies) | 2.5x | 2.6x | 3.2x | 0.8x | 0.0x |
|---|
| Andhra Sugars ($ANDHRSUGAR) | 2.3x | 1.4x | 1.1x | 1.4x | 3.9x |
