Gokaldas Exports Net Debt / EBITDA jumped on 6.8x from 3.6x to 10.4x in 2015 while EBITDA dropped on 67.2%
26-05-2015 • About Gokaldas Exports (
$GOKEX) • By InTwits
Gokaldas Exports reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gokaldas Exports is a company in decline: FY2015 revenue growth was -3.6%, 5 years revenue CAGR was -3.0%
- Gokaldas Exports motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -0.0% for the sames years0
- Gokaldas Exports has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.5%.
- CAPEX is quite volatile: 64.4 in FY2015, 30.3 in FY2014, 111 in FY2013, 114 in FY2012, 365 in FY2011
- The company has unprofitable business model: ROIC is at -1.8%
- It operates with high leverage: Net Debt/EBITDA is 10.4x while industry average is 4.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gokaldas Exports ($GOKEX) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,451 | 9,060 | 9,810 | 11,312 | 10,902 | -3.6% |
| EBITDA | -285 | -392 | -346 | 756 | 248 | -67.2% |
| Net Income | -901 | -1,324 | -1,094 | -67 | 347 | |
Balance Sheet
|
|---|
| Cash | 273 | 178 | 154 | 379 | 527 | 39.1% |
| Short Term Debt | 3,005 | 2,533 | 3,169 | 2,467 | 2,841 | 15.2% |
| Long Term Debt | 159 | 53 | 0 | 642 | 267 | -58.3% |
Cash flow
|
|---|
| Capex | 365 | 114 | 111 | 30 | 64 | 112.5% |
Ratios
|
|---|
| Revenue growth | -9.7% | -20.9% | 8.3% | 15.3% | -3.6% | |
| EBITDA growth | -152.1% | 37.4% | -11.8% | -318.7% | -67.2% | |
| EBITDA Margin | -2.5% | -4.3% | -3.5% | 6.7% | 2.3% | -4.4% |
| Net Income Margin | -7.9% | -14.6% | -11.2% | -0.6% | 3.2% | 3.8% |
| CAPEX, % of revenue | 3.2% | 1.3% | 1.1% | 0.3% | 0.6% | 0.3% |
| ROIC | -9.0% | -13.0% | -14.8% | 10.9% | -1.8% | -12.7% |
| ROE | -21.7% | -44.5% | -62.3% | -5.4% | 24.6% | 30.0% |
| Net Debt/EBITDA | | | | 3.6x | 10.4x | 6.8x |
Revenue and profitability
Gokaldas Exports's Revenue decreased on 3.6% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.71 pp from 7.5% to 8.2% in FY2015.
Net Income marign increased on 3.8 pp from -0.59% to 3.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Gokaldas Exports's CAPEX/Revenue was 0.59% in FY2015. The company showed small CAPEX/Revenue decline of 0.67 pp from 1.3% in FY2012 to 0.59% in FY2015. It's average CAPEX/Revenue for the last three years was 0.66%.
Return on investment
The company operates at negative ROIC (-1.80%) and low but positive ROE (24.56%). ROIC dropped on 12.7 pp from 10.9% to -1.8% in FY2015. ROE jumped on 30.0 pp from -5.4% to 24.6% in FY2015.
Leverage (Debt)
Debt level is 10.4x Net Debt / EBITDA and 12.5x Debt / EBITDA. Net Debt / EBITDA surged on 6.8x from 3.6x to 10.4x in FY2015. Debt showed almost no change in FY2015 while cash surged on 39.1% in FY2015.
Appendix 1: Peers in Other Apparels & Accessories
Below you can find Gokaldas Exports benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Mini Diamonds (India) ($MINID) | -85.8% | 35.0% | 59.6% | 117.1% | |
| Page Industries ($PAGEIND) | -73.3% | 39.0% | 26.3% | 37.5% | |
| Bhartiya International ($BIL) | | 28.4% | 20.9% | 36.7% | 34.7% |
| Celebrity Fashions ($CELEBRITY) | | 1.0% | -8.6% | 35.2% | -21.7% |
| Super Tannery ($SUPTANERY) | -30.0% | -1.4% | 0.3% | 34.6% | |
| |
|---|
| Median (23 companies) | -9.3% | 10.4% | 19.5% | 14.1% | 6.4% |
|---|
| Gokaldas Exports ($GOKEX) | | -20.9% | 8.3% | 15.3% | -3.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arrow Textiles ($ARROWTEX) | | | | | 25.2% |
| Rupa & Company ($RUPA) | 10.7% | 12.7% | 15.0% | 15.3% | 14.5% |
| Ashapura Intimates Fashion ($AIFL) | 8.9% | 9.5% | 10.5% | 10.7% | 13.7% |
| Cantabil Retail India ($CANTABIL) | 13.8% | -10.4% | -22.3% | | 10.4% |
| Bhartiya International ($BIL) | 10.6% | 11.4% | 9.2% | 8.9% | 9.5% |
| |
|---|
| Median (15 companies) | 8.7% | 7.6% | 6.1% | 5.4% | 5.8% |
|---|
| Gokaldas Exports ($GOKEX) | -2.5% | -4.3% | -3.5% | 6.7% | 2.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 5.8% | 4.0% | 5.2% | 4.4% | |
| Zodiac Clothing Co ($ZODIACLOTH) | 9.3% | 5.7% | 3.9% | 4.0% | |
| Tara Jewels ($TARAJEWELS) | 1.8% | 1.6% | 1.3% | 3.1% | |
| Bhartiya International ($BIL) | 4.5% | 4.5% | 3.9% | 1.8% | 2.1% |
| Rupa & Company ($RUPA) | 4.5% | 1.9% | 3.9% | 1.7% | 2.2% |
| |
|---|
| Median (14 companies) | 1.9% | 1.8% | 1.7% | 1.2% | 0.7% |
|---|
| Gokaldas Exports ($GOKEX) | 3.2% | 1.3% | 1.1% | 0.3% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Page Industries ($PAGEIND) | 44.2% | 54.9% | 58.5% | 61.6% | |
| Oscar Global ($OSCARGLO) | | | 12.6% | 52.3% | |
| Virat Industries ($VIRAT) | 13.2% | 20.7% | 26.2% | 30.9% | |
| Rupa & Company ($RUPA) | 20.2% | 22.4% | 27.1% | 25.8% | 23.8% |
| Ashapura Intimates Fashion ($AIFL) | 21.7% | 24.1% | 19.1% | 23.4% | 39.9% |
| |
|---|
| Median (40 companies) | 10.4% | 10.1% | 7.2% | 11.0% | 10.5% |
|---|
| Gokaldas Exports ($GOKEX) | -9.0% | -13.0% | -14.8% | 10.9% | -1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.2x | 2.6x | 11.9x | 61.2x |
| Shrenuj & Co ($SHRENUJ) | 8.6x | 9.3x | 11.2x | 11.7x | |
| Pearl Global Industries ($PGIL) | 8.4x | 4.5x | 4.7x | 7.0x | 2.7x |
| C. Mahendra Exports ($CMAHENDRA) | 4.1x | 4.5x | 4.9x | 6.0x | |
| Asian Star Co ($ASTAR) | 8.2x | 7.1x | 7.1x | 5.9x | 4.8x |
| |
|---|
| Median (24 companies) | 2.7x | 2.3x | 2.7x | 0.0x | 1.7x |
|---|
| Gokaldas Exports ($GOKEX) | | | | 3.6x | 10.4x |
