Insecticides (India) Net Income jumped on 37.3% in 2015 and Revenue surged on 11.6%
27-05-2015 • About Insecticides (India) (
$INSECTICID) • By InTwits
Insecticides (India) reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.7% in FY2015 vs. 10.6% in FY2014 vs. 9.9% in FY2011
- Insecticides (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.9%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 341 in FY2015, 174 in FY2014, 151 in FY2013, 1,308 in FY2012, 572 in FY2011
- The company has highly profitable business model: ROIC is at 16.8%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Insecticides (India) ($INSECTICID) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,501 | 5,218 | 6,167 | 8,641 | 9,642 | 11.6% |
| EBITDA | 445 | 573 | 695 | 912 | 1,130 | 23.8% |
| Net Income | 322 | 330 | 353 | 399 | 548 | 37.3% |
Balance Sheet
|
|---|
| Cash | 37 | 51 | 47 | 90 | 65 | -27.6% |
| Short Term Debt | 371 | 1,203 | 1,812 | 2,278 | 2,679 | 17.6% |
| Long Term Debt | 9 | 383 | 301 | 302 | 537 | 77.6% |
Cash flow
|
|---|
| Capex | 599 | 556 | 497 | 335 | 335 | 0.0% |
Ratios
|
|---|
| Revenue growth | -59.4% | 15.9% | 18.2% | 40.1% | 11.6% | |
| EBITDA growth | 31.5% | 28.6% | 21.4% | 31.2% | 23.8% | |
| EBITDA Margin | 9.9% | 11.0% | 11.3% | 10.6% | 11.7% | 1.2% |
| Net Income Margin | 7.2% | 6.3% | 5.7% | 4.6% | 5.7% | 1.1% |
| CAPEX, % of revenue | 13.3% | 10.7% | 8.1% | 3.9% | 3.5% | -0.4% |
| ROIC | 23.5% | 19.2% | 15.6% | 15.7% | 16.8% | 1.1% |
| ROE | 22.9% | 19.6% | 17.9% | 17.4% | 20.4% | 3.0% |
| Net Debt/EBITDA | 0.8x | 2.7x | 3.0x | 2.7x | 2.8x | 0.1x |
Revenue and profitability
Insecticides (India)'s Revenue jumped on 11.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.9 pp from 9.5% to 6.5% in FY2015.
Net Income marign increased slightly on 1.1 pp from 4.6% to 5.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Insecticides (India) had CAPEX/Revenue of 3.5%. The company's CAPEX/Revenue decreased on 7.2 pp from 10.7% in FY2012 to 3.5% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.1%.
Return on investment
The company operates at high and attractive ROE (20.39%) while ROIC is a bit lower (16.80%). ROIC increased slightly on 1.1 pp from 15.7% to 16.8% in FY2015. ROE increased on 3.0 pp from 17.4% to 20.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 2.8x. Net Debt / EBITDA increased on 0.1x from 2.7x to 2.8x in FY2015. Debt jumped on 24.7% in FY2015 while cash dropped on 27.6% in FY2015.
Valuation
The company's trades at EV/EBITDA 11.6x and P/E 18.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 16.5x with the industry average at 4.7x.
Appendix 1: Peers in Agrochemicals
Below you can find Insecticides (India) benchmarking vs. other companies in Agrochemicals 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 |
|---|
| Astec Lifesciences Limited ($ASTEC) | | 2.6% | 55.7% | 18.4% | 28.9% |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | | 15.2% | 113.6% | 18.4% | 25.9% |
| P.I.Industries ($PIIND) | | 22.2% | 31.0% | 38.9% | 21.6% |
| Excel Industries ($EXCELINDUS) | | 14.7% | 21.7% | 8.3% | 15.8% |
| Rallis India ($RALLIS) | | 17.4% | 14.4% | 19.8% | 4.3% |
| |
|---|
| Median (7 companies) | | 15.2% | 21.7% | 18.4% | 15.8% |
|---|
| Insecticides (India) ($INSECTICID) | | 15.9% | 18.2% | 40.1% | 11.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monsanto India ($MONSANTO) | 18.3% | 15.1% | 16.4% | 7.3% | 20.9% |
| Astec Lifesciences Limited ($ASTEC) | 14.5% | 15.5% | 16.7% | 17.1% | 20.3% |
| P.I.Industries ($PIIND) | 15.5% | 17.0% | 15.8% | 18.4% | 19.6% |
| Rallis India ($RALLIS) | 18.2% | 16.2% | 14.7% | 15.2% | 15.4% |
| Jubilant Industries ($JUBLINDS) | 9.9% | 1.8% | 1.6% | | 15.3% |
| |
|---|
| Median (7 companies) | 14.5% | 15.1% | 14.7% | 12.5% | 15.4% |
|---|
| Insecticides (India) ($INSECTICID) | 9.9% | 11.0% | 11.3% | 10.6% | 11.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 13.5% | 13.4% | 13.2% | 4.0% | 8.7% |
| Astec Lifesciences Limited ($ASTEC) | 32.6% | 41.7% | 14.9% | 9.2% | 7.5% |
| Excel Industries ($EXCELINDUS) | 3.7% | 7.6% | 5.7% | 8.5% | 6.8% |
| Rallis India ($RALLIS) | 12.1% | 4.5% | 3.2% | 3.4% | 3.3% |
| Jubilant Industries ($JUBLINDS) | 3.5% | 1.7% | | | 2.6% |
| |
|---|
| Median (6 companies) | 4.0% | 6.0% | 5.7% | 4.0% | 5.1% |
|---|
| Insecticides (India) ($INSECTICID) | 13.3% | 10.7% | 8.1% | 3.9% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| P.I.Industries ($PIIND) | 22.4% | 23.9% | 22.5% | 31.3% | 34.0% |
| Monsanto India ($MONSANTO) | 15.1% | 12.4% | 15.3% | 7.8% | 29.2% |
| Rallis India ($RALLIS) | 32.6% | 26.3% | 25.3% | 28.3% | 25.4% |
| Excel Industries ($EXCELINDUS) | 13.8% | 8.5% | 14.2% | 11.9% | 20.3% |
| Astec Lifesciences Limited ($ASTEC) | 7.2% | 5.6% | 9.7% | 10.7% | 19.1% |
| |
|---|
| Median (7 companies) | 13.8% | 6.4% | 9.7% | 11.9% | 25.4% |
|---|
| Insecticides (India) ($INSECTICID) | 23.5% | 19.2% | 15.6% | 15.7% | 16.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Industries ($JUBLINDS) | -0.0x | 12.1x | 11.5x | | 2.5x |
| Astec Lifesciences Limited ($ASTEC) | 2.7x | 4.1x | 2.4x | 2.3x | 1.7x |
| Excel Industries ($EXCELINDUS) | 1.4x | 2.7x | 1.6x | 2.3x | 1.3x |
| Rallis India ($RALLIS) | 0.5x | 0.7x | 0.1x | 0.2x | 0.4x |
| P.I.Industries ($PIIND) | 2.1x | 1.6x | 1.2x | 0.3x | 0.2x |
| |
|---|
| Median (7 companies) | 1.6x | 3.4x | 2.4x | 0.2x | 0.4x |
|---|
| Insecticides (India) ($INSECTICID) | 0.8x | 2.7x | 3.0x | 2.7x | 2.8x |
