Maithan Alloys EBITDA jumped on 115% in 2015 and Revenue surged on 15.0%
26-05-2015 • About Maithan Alloys (
$MAITHANALL) • By InTwits
Maithan Alloys reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.9% in FY2015, 5.3% in FY2014, 9.2% in FY2013, 11.7% in FY2012, 17.8% in FY2011
- Maithan Alloys has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.6%. At the same time it's in pair with industry average of 12.7%.
- CAPEX is quite volatile: 141 in FY2015, 236 in FY2014, 989 in FY2013, 1,199 in FY2012, 829 in FY2011
- The company has highly profitable business model: ROIC is at 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maithan Alloys ($MAITHANALL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,075 | 5,984 | 9,521 | 9,623 | 11,065 | 15.0% |
| EBITDA | 1,082 | 702 | 879 | 508 | 1,095 | 115.5% |
| Net Income | 727 | 454 | 444 | 114 | 526 | 361.8% |
Balance Sheet
|
|---|
| Cash | 198 | 371 | 231 | 246 | 115 | -53.3% |
| Short Term Debt | 279 | 66 | 442 | 1,034 | 923 | -10.7% |
| Long Term Debt | 579 | 1,661 | 1,668 | 1,543 | 1,213 | -21.4% |
Cash flow
|
|---|
| Capex | 829 | 1,199 | 989 | 236 | 141 | -40.3% |
Ratios
|
|---|
| Revenue growth | -53.5% | -1.5% | 59.1% | 1.1% | 15.0% | |
| EBITDA growth | 82.5% | -35.1% | 25.2% | -42.2% | 115.5% | |
| EBITDA Margin | 17.8% | 11.7% | 9.2% | 5.3% | 9.9% | 4.6% |
| Net Income Margin | 12.0% | 7.6% | 4.7% | 1.2% | 4.8% | 3.6% |
| CAPEX, % of revenue | 13.6% | 20.0% | 10.4% | 2.5% | 1.3% | -1.2% |
| ROIC | 34.5% | 16.3% | 15.1% | 5.5% | 15.3% | 9.8% |
| ROE | 43.8% | 21.4% | 17.8% | 4.2% | 17.6% | 13.4% |
| Net Debt/EBITDA | 0.6x | 1.9x | 2.1x | 4.6x | 1.8x | -2.7x |
Revenue and profitability
The company's Revenue jumped on 15.0% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.6 pp from 5.3% to 9.9% in FY2015.
Net Income marign increased on 3.6 pp from 1.2% to 4.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Maithan Alloys had CAPEX/Revenue of 1.3%. Maithan Alloys showed big decline in CAPEX/Revenue of 18.8 pp from 20.0% in FY2012 to 1.3% in FY2015. For the last three years the average CAPEX/Revenue was 4.7%.
Return on investment
The company operates at good ROIC (15.31%) and ROE (17.56%). ROIC increased on 9.8 pp from 5.5% to 15.3% in FY2015. ROE surged on 13.4 pp from 4.2% to 17.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 2.0x. Net Debt / EBITDA dropped on 2.7x from 4.6x to 1.8x in FY2015. Debt dropped on 17.1% in FY2015 while cash dropped on 53.3% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.0x and P/E 6.6x while industy averages are 10.5x and 26.1x. Maithan Alloys's EV/(EBITDA-CAPEX) is 5.8x with the industry average at 4.7x.
Management team
Maithan Alloys's CEO is Subhas Chandra Agarwalla. Subhas Chandra Agarwalla has 12 years tenure at the company.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below we provide Maithan Alloys benchmarking against other companies in Iron & Steel/Interm.Products 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 |
|---|
| Inducto Steel ($INDCTST) | | | 54.5% | 150.2% | |
| Kamdhenu Ispat ($KIL) | -65.5% | 25.7% | 13.7% | 68.3% | |
| Metkore Alloys & Industries ($METKORE) | -49.1% | 43.7% | -10.9% | 53.4% | |
| Tata Metaliks ($TATAMETALI) | | -7.0% | -19.0% | 44.6% | -1.3% |
| Visa Steel ($VISASTEEL) | -12.5% | 3.3% | -24.1% | 42.0% | |
| |
|---|
| Median (31 companies) | -33.7% | 12.5% | 3.2% | 3.4% | 9.2% |
|---|
| Maithan Alloys ($MAITHANALL) | | -1.5% | 59.1% | 1.1% | 15.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 48.3% | 37.5% | 30.5% | 28.1% | |
| Bhushan Steel ($BHUSANSTL) | 29.0% | 31.2% | 32.3% | 28.1% | |
| Sarda Energy & Minerals ($SARDAEN) | 15.2% | 16.3% | 21.5% | 21.3% | 21.5% |
| Jsw Steel ($JSWSTEEL) | 20.2% | 17.8% | 17.1% | 17.9% | 17.7% |
| Jai Corp ($JAICORPLTD) | 18.4% | 14.1% | 16.3% | 16.0% | 12.7% |
| |
|---|
| Median (28 companies) | 13.0% | 9.4% | 9.0% | 7.4% | 9.3% |
|---|
| Maithan Alloys ($MAITHANALL) | 17.8% | 11.7% | 9.2% | 5.3% | 9.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 64.7% | 34.2% | 47.6% | 69.6% | |
| Bhushan Steel ($BHUSANSTL) | 81.1% | 47.2% | 44.0% | 50.4% | |
| Jayaswal Neco Industries ($JAYNECOIND) | 27.9% | 20.4% | 44.0% | 31.1% | |
| Surana Industries ($SURANAIND) | | 41.3% | 54.8% | 21.5% | |
| Steel Authority Of India ($SAIL) | 25.3% | 20.9% | 20.7% | 19.3% | |
| |
|---|
| Median (20 companies) | 11.9% | 7.5% | 11.6% | 7.7% | 5.3% |
|---|
| Maithan Alloys ($MAITHANALL) | 13.6% | 20.0% | 10.4% | 2.5% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($TATAMETALI) | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% |
| Nova Iron & Steel ($NOVIS) | | | | 15.4% | |
| Kirloskar Ferrous Industries ($KIRLFER) | 20.0% | 19.1% | 16.8% | 12.4% | 14.7% |
| Pennar Industries ($PENIND) | 31.6% | 26.8% | 18.4% | 12.3% | 15.7% |
| Jsw Steel ($JSWSTEEL) | 9.7% | 11.0% | 10.3% | 12.1% | 9.9% |
| |
|---|
| Median (40 companies) | 9.4% | 6.8% | 5.5% | 6.0% | 9.7% |
|---|
| Maithan Alloys ($MAITHANALL) | 34.5% | 16.3% | 15.1% | 5.5% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jai Balaji Industries ($JAIBALAJI) | 5.5x | | | 89.7x | |
| Visa Steel ($VISASTEEL) | 6.9x | 20.1x | | 24.4x | |
| Ismt ($ISMTLTD) | 4.4x | 5.3x | 9.8x | 19.9x | |
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | |
| Bhushan Steel ($BHUSANSTL) | 8.1x | 6.3x | 8.6x | 12.9x | |
| |
|---|
| Median (29 companies) | 3.8x | 4.6x | 4.4x | 3.2x | 1.6x |
|---|
| Maithan Alloys ($MAITHANALL) | 0.6x | 1.9x | 2.1x | 4.6x | 1.8x |
