Transpek Industry reports 192% Net Income growth and 3.1 pp EBITDA Margin growth from 10.5% to 13.6%
26-05-2015 • About Transpek Industry (
$TRANSPEK) • By InTwits
Transpek Industry reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.6% in FY2015, 10.5% in FY2014, 13.2% in FY2013, 3.2% in FY2012, 15.1% in FY2011
- Transpek Industry has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 93.1 in FY2015, 111 in FY2014, 95.3 in FY2013, 88.0 in FY2012, 465 in FY2011
- The company has highly profitable business model: ROIC is at 17.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.8x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Transpek Industry ($TRANSPEK) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,991 | 1,807 | 2,379 | 2,619 | 2,875 | 9.8% |
| EBITDA | 300 | 57 | 314 | 274 | 391 | 42.8% |
| Net Income | 100 | -158 | 74 | 75 | 220 | 191.6% |
Balance Sheet
|
|---|
| Cash | 28 | 36 | 29 | 36 | 24 | -32.7% |
| Short Term Debt | 511 | 766 | 711 | 851 | 419 | -50.7% |
| Long Term Debt | 370 | 289 | 333 | 161 | 297 | 84.4% |
Cash flow
|
|---|
| Capex | 465 | 88 | 95 | 111 | 93 | -16.5% |
Ratios
|
|---|
| Revenue growth | -41.6% | -9.2% | 31.7% | 10.1% | 9.8% | |
| EBITDA growth | 48.1% | -80.9% | 446.5% | -12.7% | 42.8% | |
| EBITDA Margin | 15.1% | 3.2% | 13.2% | 10.5% | 13.6% | 3.1% |
| Net Income Margin | 5.0% | -8.8% | 3.1% | 2.9% | 7.6% | 4.8% |
| CAPEX, % of revenue | 23.4% | 4.9% | 4.0% | 4.3% | 3.2% | -1.0% |
| ROIC | 15.7% | -1.7% | 14.2% | 11.0% | 17.8% | 6.9% |
| ROE | 17.3% | -29.8% | 15.4% | 14.1% | 33.5% | 19.4% |
| Net Debt/EBITDA | 2.8x | 17.8x | 3.2x | 3.6x | 1.8x | -1.8x |
Revenue and profitability
Transpek Industry's Revenue increased on 9.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.77 pp from 2.2% to 3.0% in FY2015.
Net Income marign increased on 4.8 pp from 2.9% to 7.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Transpek Industry had CAPEX/Revenue of 3.2%. Transpek Industry's CAPEX/Revenue decreased slightly on 1.6 pp from 4.9% in FY2012 to 3.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at high and attractive ROE (33.52%) while ROIC is a bit lower (17.83%). ROIC increased on 6.9 pp from 11.0% to 17.8% in FY2015. ROE jumped on 19.4 pp from 14.1% to 33.5% in FY2015.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.8x from 3.6x to 1.8x in FY2015. Debt dropped on 29.2% in FY2015 while cash dropped on 32.7% in FY2015.
Valuation
Transpek Industry's trades at EV/EBITDA 5.6x and P/E 6.8x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 7.4x with the industry average at 4.7x.
Appendix 1: Peers in Commodity Chemicals
Below you can find Transpek Industry 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 ($CAMPHOR) | -49.0% | -6.7% | 7.2% | 42.7% | |
| |
|---|
| Median (35 companies) | -37.9% | 19.0% | 10.9% | 10.7% | 1.1% |
|---|
| Transpek Industry ($TRANSPEK) | | -9.2% | 31.7% | 10.1% | 9.8% |
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 ($ALKYLAMINE) | 13.3% | 15.9% | 16.0% | 19.0% | 18.3% |
| |
|---|
| Median (31 companies) | 12.1% | 11.6% | 8.3% | 8.5% | 7.4% |
|---|
| Transpek Industry ($TRANSPEK) | 15.1% | 3.2% | 13.2% | 10.5% | 13.6% |
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 ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | |
| |
|---|
| Median (19 companies) | 5.6% | 5.3% | 7.2% | 5.9% | 4.7% |
|---|
| Transpek Industry ($TRANSPEK) | 23.4% | 4.9% | 4.0% | 4.3% | 3.2% |
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 ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| |
|---|
| Median (59 companies) | 10.5% | 9.2% | 9.5% | 8.9% | 12.6% |
|---|
| Transpek Industry ($TRANSPEK) | 15.7% | -1.7% | 14.2% | 11.0% | 17.8% |
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 ($REFNOL) | | | 4.1x | 5.6x | 0.0x |
| |
|---|
| Median (41 companies) | 2.4x | 2.6x | 3.0x | 0.8x | 0.0x |
|---|
| Transpek Industry ($TRANSPEK) | 2.8x | 17.8x | 3.2x | 3.6x | 1.8x |
