Kothari Products reports 60.8% EBITDA decline while 12.6% Revenue growth
27-05-2015 • About Kothari Products (
$KOTHARIPRO) • By InTwits
Kothari Products reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.0% in FY2015, 5.9% in FY2014, 4.4% in FY2013, 5.4% in FY2012, 3.3% in FY2011
- Kothari Products has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has business model with average profitability: ROIC is at 10.6%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kothari Products ($KOTHARIPRO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,052 | 39,394 | 50,437 | 57,482 | 64,732 | 12.6% |
| EBITDA | 534 | 2,141 | 2,196 | 3,379 | 1,325 | -60.8% |
| Net Income | 660 | 610 | 871 | 631 | 744 | 17.8% |
Balance Sheet
|
|---|
| Cash | 603 | 365 | 1,983 | 1,720 | 815 | -52.6% |
| Short Term Debt | 1,014 | 1,819 | 2,689 | 2,549 | 1,921 | -24.6% |
| Long Term Debt | 447 | 1,082 | 609 | 689 | 726 | 5.4% |
Cash flow
|
|---|
| Capex | 148 | 1,005 | 54 | 97 | 29 | -69.5% |
Ratios
|
|---|
| Revenue growth | -79.6% | 145.4% | 28.0% | 14.0% | 12.6% | |
| EBITDA growth | -931.8% | 301.2% | 2.6% | 53.9% | -60.8% | |
| EBITDA Margin | 3.3% | 5.4% | 4.4% | 5.9% | 2.0% | -3.8% |
| Net Income Margin | 4.1% | 1.5% | 1.7% | 1.1% | 1.1% | 0.1% |
| CAPEX, % of revenue | 0.9% | 2.5% | 0.1% | 0.2% | 0.0% | -0.1% |
| ROIC | 7.4% | 23.4% | 20.0% | 28.3% | 10.6% | -17.7% |
| ROE | 11.2% | 9.5% | 12.4% | 8.2% | 9.0% | 0.8% |
| Net Debt/EBITDA | 1.6x | 1.2x | 0.6x | 0.4x | 1.4x | 0.9x |
Revenue and profitability
The company's Revenue jumped on 12.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.2 pp from 28.9% to 33.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.045% in FY2015. CAPEX/Revenue decreased on 2.5 pp from 2.5% in FY2012 to 0.045% in FY2015. It's average CAPEX/Revenue for the last three years was 0.11%.
Return on investment
The company operates at low ROIC (10.65%) and ROE (8.97%). ROIC dropped on 17.7 pp from 28.3% to 10.6% in FY2015. ROE increased slightly on 0.77 pp from 8.2% to 9.0% in FY2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 0.4x to 1.4x in FY2015. Debt dropped on 18.2% in FY2015 while cash dropped on 52.6% in FY2015.
Appendix 1: Peers in Comm.Trading & Distribution
Below we provide Kothari Products benchmarking against other companies in Comm.Trading & Distribution 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 |
|---|
| Risa International ($RISAINTL) | 285.4% | | | 4,724.7% | |
| Shri Krishna Prasadam ($SKP) | | 69.6% | 57.3% | 1,074.7% | 148.2% |
| Parker Agrochem Exports ($PARKERAC) | -87.9% | -77.2% | 1,542.3% | 39.1% | |
| Ennore Coke ($ENNORE) | | -5.0% | -45.5% | 34.0% | -26.1% |
| Gagan Polycot India ($GAGANPO) | -23.2% | -59.4% | 76.3% | 18.2% | |
| |
|---|
| Median (18 companies) | -33.2% | 4.1% | 12.6% | 12.5% | 1.4% |
|---|
| Kothari Products ($KOTHARIPRO) | | 145.4% | 28.0% | 14.0% | 12.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hexa Tradex ($HEXATRADEX) | | | | | 48.1% |
| Bombay Cycle & Motor Agency ($BOMBCYC) | | | | | 19.5% |
| Ptl Enterprises ($PTL) | 27.6% | 26.6% | 22.7% | 21.6% | 18.5% |
| Rama Vision ($RAMAVISION) | | | | | 3.5% |
| Ph Capital ($PHCAP) | | | | | 3.4% |
| |
|---|
| Median (15 companies) | 2.4% | 2.7% | 2.7% | 1.8% | 2.4% |
|---|
| Kothari Products ($KOTHARIPRO) | 3.3% | 5.4% | 4.4% | 5.9% | 2.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Maxwell Industries ($MAXWELL) | 1.2% | 0.9% | 1.9% | 2.4% | |
| Ptl Enterprises ($PTL) | 1.0% | 5.0% | 4.5% | 2.4% | 4.2% |
| Redington (India) ($REDINGTON) | 0.3% | 0.2% | 0.7% | 0.2% | 0.2% |
| Mmtc ($MMTC) | 0.1% | 0.0% | 0.1% | 0.1% | 0.1% |
| Risa International ($RISAINTL) | | | 0.0% | 0.0% | |
| |
|---|
| Median (5 companies) | 0.5% | 0.2% | 0.4% | 0.2% | 0.2% |
|---|
| Kothari Products ($KOTHARIPRO) | 0.9% | 2.5% | 0.1% | 0.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ptl Enterprises ($PTL) | 18.1% | 18.5% | 19.5% | 21.1% | 22.1% |
| Redington (India) ($REDINGTON) | 15.5% | 17.2% | 16.0% | 16.3% | 15.3% |
| Risa International ($RISAINTL) | | | -0.2% | 14.8% | |
| Bombay Cycle & Motor Agency ($BOMBCYC) | | | 15.1% | 13.5% | |
| Mmtc ($MMTC) | 1.0% | 0.7% | 1.6% | 9.7% | -1.2% |
| |
|---|
| Median (51 companies) | 2.5% | 4.5% | 4.8% | 9.6% | 7.8% |
|---|
| Kothari Products ($KOTHARIPRO) | 7.4% | 23.4% | 20.0% | 28.3% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ph Capital ($PHCAP) | | | | 18.4x | 0.0x |
| Unitech International ($UNITINT) | | | | 5.1x | |
| Vipul Dye Chem ($VIPULDYE) | 2.9x | 3.9x | 5.1x | 3.9x | |
| Maxwell Industries ($MAXWELL) | 5.7x | 3.7x | 5.8x | 3.5x | |
| Vadilal Enterprises ($VADILENT) | 1.3x | 2.3x | 4.0x | 2.3x | |
| |
|---|
| Median (27 companies) | 3.2x | 2.0x | 2.0x | 0.0x | 0.0x |
|---|
| Kothari Products ($KOTHARIPRO) | 1.6x | 1.2x | 0.6x | 0.4x | 1.4x |
