Kaveri Seed Company reports 221% CAPEX growth and 14.8% Revenue growth
26-05-2015 • About Kaveri Seed Company (
$KSCL) • By InTwits
Kaveri Seed Company reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kaveri Seed Company has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 821 in FY2015, 255 in FY2014, 420 in FY2013, 108 in FY2012, 125 in FY2011
- The company has highly profitable business model: ROIC is at 45.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kaveri Seed Company ($KSCL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,337 | 3,724 | 7,120 | 10,111 | 11,609 | 14.8% |
| EBITDA | 538 | 770 | 1,393 | 2,212 | 3,103 | 40.3% |
| Net Income | 425 | 581 | 1,281 | 2,090 | 3,010 | 44.0% |
Balance Sheet
|
|---|
| Cash | 45 | 96 | 143 | 67 | 66 | -1.4% |
| Short Term Debt | 250 | 190 | 0 | 0 | 0 | -13.0% |
| Long Term Debt | 27 | 26 | 8 | 9 | 14 | 54.8% |
Cash flow
|
|---|
| Capex | 125 | 108 | 420 | 255 | 821 | 221.5% |
Ratios
|
|---|
| Revenue growth | -82.8% | 59.4% | 91.2% | 42.0% | 14.8% | |
| EBITDA growth | 52.6% | 43.0% | 81.0% | 58.8% | 40.3% | |
| EBITDA Margin | 23.0% | 20.7% | 19.6% | 21.9% | 26.7% | 4.8% |
| Net Income Margin | 18.2% | 15.6% | 18.0% | 20.7% | 25.9% | 5.3% |
| CAPEX, % of revenue | 5.4% | 2.9% | 5.9% | 2.5% | 7.1% | 4.5% |
| ROIC | 21.0% | 27.5% | 41.1% | 46.8% | 45.9% | -1.0% |
| ROE | 25.0% | 27.0% | 43.7% | 48.6% | 47.4% | -1.2% |
| Net Debt/EBITDA | 0.4x | 0.2x | -0.1x | -0.0x | -0.0x | 0.0x |
Revenue and profitability
The company's Revenue surged on 14.8% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 21.9% to 26.7% in FY2015.
Net Income marign increased on 5.3 pp from 20.7% to 25.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Kaveri Seed Company had CAPEX/Revenue of 7.1%. CAPEX/Revenue increased on 4.2 pp from 2.9% in FY2012 to 7.1% in FY2015. It's average CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at high and attractive ROIC (45.89%) and ROE (47.38%). ROIC decreased slightly on 0.96 pp from 46.8% to 45.9% in FY2015. ROE decreased slightly on 1.2 pp from 48.6% to 47.4% in FY2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA increased slightly on 0.0093x from -0.026x to -0.017x in FY2015. Debt jumped on 52.6% in FY2015 while cash decreased slightly on 1.4% in FY2015.
Valuation
Kaveri Seed Company's trades at EV/EBITDA 18.5x and P/E 19.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 25.1x with the industry average at 4.7x.
Appendix 1: Peers in Other Agricultural Products
Below you can find Kaveri Seed Company benchmarking vs. other companies in Other Agricultural Products 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 |
|---|
| Unique Organics ($UNIQUEO) | -74.0% | 102.1% | 35.2% | 51.2% | |
| Freshtrop Fruits ($FRSHTRP) | -57.2% | 14.7% | 43.8% | 29.1% | |
| Olympic Oil Industries ($OLYOI) | -98.4% | 1,600.6% | 160.6% | 21.1% | |
| Kohinoor Foods ($KOHINOOR) | -34.9% | 5.4% | 13.4% | 16.2% | |
| Anik Industries ($ANIKINDS) | -26.6% | 26.0% | -21.3% | 14.6% | |
| |
|---|
| Median (9 companies) | -57.9% | 26.0% | 16.2% | 14.6% | -0.8% |
|---|
| Kaveri Seed Company ($KSCL) | | 59.4% | 91.2% | 42.0% | 14.8% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avt Natural Products ($AVTNPL) | 17.3% | 37.6% | 30.8% | 25.9% | |
| Kohinoor Foods ($KOHINOOR) | 12.7% | 4.7% | 10.9% | 11.2% | |
| Freshtrop Fruits ($FRSHTRP) | 7.8% | 9.3% | 8.9% | 9.8% | |
| Vikas Granaries ($VIKASGRAN) | 30.4% | 10.6% | 14.2% | 9.8% | |
| Agro Tech Foods ($ATFL) | 3.9% | 7.6% | 8.3% | 9.2% | 8.0% |
| |
|---|
| Median (7 companies) | 5.9% | 4.7% | 8.3% | 9.8% | 8.0% |
|---|
| Kaveri Seed Company ($KSCL) | 23.0% | 20.7% | 19.6% | 21.9% | 26.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Agro Tech Foods ($ATFL) | 4.2% | 4.1% | 6.0% | 6.3% | 5.6% |
| Avt Natural Products ($AVTNPL) | 2.0% | 2.3% | 5.0% | 3.3% | |
| Kohinoor Foods ($KOHINOOR) | 3.7% | 1.6% | 1.5% | 1.0% | |
| |
|---|
| Median (3 companies) | 3.2% | 1.0% | 2.9% | 3.3% | 5.6% |
|---|
| Kaveri Seed Company ($KSCL) | 5.4% | 2.9% | 5.9% | 2.5% | 7.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avt Natural Products ($AVTNPL) | 19.1% | 58.2% | 41.5% | 32.8% | |
| Agro Tech Foods ($ATFL) | 13.7% | 24.0% | 25.3% | 21.2% | 13.9% |
| Kohinoor Foods ($KOHINOOR) | 11.2% | 3.1% | 8.8% | 10.3% | |
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Himalya International ($HIMIN) | 12.8% | 9.4% | 10.2% | | |
| |
|---|
| Median (13 companies) | 11.2% | 8.3% | 8.9% | 15.7% | 7.0% |
|---|
| Kaveri Seed Company ($KSCL) | 21.0% | 27.5% | 41.1% | 46.8% | 45.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kohinoor Foods ($KOHINOOR) | 7.7x | 19.2x | 7.8x | 6.1x | |
| Agro Tech Foods ($ATFL) | -1.6x | -0.8x | -0.2x | 0.1x | 0.3x |
| Freshtrop Fruits ($FRSHTRP) | 7.0x | 3.3x | 2.5x | 0.0x | |
| Himalya International ($HIMIN) | 3.3x | 4.5x | 2.9x | 0.0x | |
| Flex Foods ($FLEXFO) | 0.8x | 0.8x | 0.9x | 0.0x | |
| |
|---|
| Median (10 companies) | 3.1x | 3.6x | 2.4x | 0.0x | 0.3x |
|---|
| Kaveri Seed Company ($KSCL) | 0.4x | 0.2x | -0.1x | -0.0x | -0.0x |
