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Sical Logistics CAPEX jumped on 84.8% in 2015 while Revenue decreased slightly on 1.7%

27-05-2015 • About Sical Logistics ($SICAL) • By InTwits

Sical Logistics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is quite volatile: 10.1% in FY2015, 11.9% in FY2014, 12.2% in FY2013, 10.4% in FY2012, -0.2% in FY2011
  • Sical Logistics has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's in pair with industry average of 17.5%.
  • CAPEX is quite volatile: 180 in FY2015, 947 in FY2014, 171 in FY2013, 893 in FY2012, 156 in FY2011
  • The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Sical Logistics ($SICAL) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue7,6957,7967,6078,4208,273-1.7%
EBITDA-148089311,006839-16.6%
Net Income-111156709516372.2%
Balance Sheet
Cash3945311,06118422522.2%
Short Term Debt2,3131,0852,0741,8852,31722.9%
Long Term Debt3,5114,5815,7756,4086,210-3.1%
Cash flow
Capex1,8851,5161,6628551,57984.8%
Ratios
Revenue growth-20.5%1.3%-2.4%10.7%-1.7%
EBITDA growth-104.1%-6,021.4%15.2%8.0%-16.6%
EBITDA Margin-0.2%10.4%12.2%11.9%10.1%-1.8%
Net Income Margin-1.4%2.0%0.9%1.1%2.0%0.8%
CAPEX, % of revenue24.5%19.4%21.9%10.2%19.1%8.9%
ROIC-2.3%4.1%4.3%4.2%2.6%-1.6%
ROE-3.0%3.8%1.6%2.2%3.7%1.5%
Net Debt/EBITDA6.4x7.3x8.1x9.9x1.8x

Revenue and profitability


The company's Revenue decreased slightly on 1.7% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 11.9% to 10.1% in FY2015.

Net Income marign increased slightly on 0.85 pp from 1.1% to 2.0% in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 the company had CAPEX/Revenue of 19.1%. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 17.0%.The company has spent a lot to CAPEX (188% of EBITDA) which didn't stop revenue from falling.

Return on investment


The company operates at low ROIC (2.59%) and ROE (3.71%). ROIC decreased slightly on 1.6 pp from 4.2% to 2.6% in FY2015. ROE increased slightly on 1.5 pp from 2.2% to 3.7% in FY2015.

Leverage (Debt)


Debt level is 9.9x Net Debt / EBITDA and 10.2x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 8.1x to 9.9x in FY2015. Debt increased on 2.8% in FY2015 while cash surged on 22.2% in FY2015.

Appendix 1: Peers in Transportation - Logistics


Below you can find Sical Logistics benchmarking vs. other companies in Transportation - Logistics 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  FY2011 FY2012 FY2013 FY2014 FY2015
Snowman Logistics ($SNOWMAN)35.9%85.2%34.9%32.3%
Gateway Distriparks ($GDL)36.6%16.1%6.2%9.7%
Arshiya ($ARSHIYA)28.7%7.8%-54.7%-37.2%
 
Median (3 companies)32.3%12.0%6.2%9.7%
Sical Logistics ($SICAL)1.3%-2.4%10.7%-1.7%


Top companies by EBITDA margin, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Gateway Distriparks ($GDL)27.3%30.4%25.6%25.4%29.4%
Snowman Logistics ($SNOWMAN)25.4%25.7%22.8%26.0%23.2%
Arshiya ($ARSHIYA)19.5%25.7%15.5%-6.3%9.7%
Gati ($GATI)7.7%6.7%6.5%8.6%
 
Median (4 companies)22.4%25.7%19.2%25.4%16.5%
Sical Logistics ($SICAL)-0.2%10.4%12.2%11.9%10.1%


Top companies by CAPEX/Revenue, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Snowman Logistics ($SNOWMAN)61.4%46.2%100.1%76.9%46.9%
Gateway Distriparks ($GDL)27.3%13.7%25.1%19.6%14.0%
Gati ($GATI)2.2%3.1%7.4%
Arshiya ($ARSHIYA)114.4%92.5%38.8%3.1%0.2%
 
Median (4 companies)44.3%46.2%31.9%19.6%10.7%
Sical Logistics ($SICAL)24.5%19.4%21.9%10.2%19.1%


Top companies by ROIC, %

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Gateway Distriparks ($GDL)10.6%15.3%13.0%11.7%15.6%
Gati ($GATI)8.8%4.8%4.8%0.0%8.3%
Snowman Logistics ($SNOWMAN)7.3%9.4%10.0%8.1%5.2%
Arshiya ($ARSHIYA)8.5%9.1%3.5%-3.3%-2.2%
 
Median (4 companies)8.7%9.3%7.4%4.0%6.8%
Sical Logistics ($SICAL)-2.3%4.1%4.3%4.2%2.6%


Top companies by Net Debt / EBITDA

Top  FY2011 FY2012 FY2013 FY2014 FY2015
Arshiya ($ARSHIYA)7.7x8.2x15.0x80.6x
Gati ($GATI)4.6x4.1x5.2x2.9x
Gateway Distriparks ($GDL)1.8x0.2x0.7x1.0x0.4x
Snowman Logistics ($SNOWMAN)-2.5x-0.8x3.4x3.3x0.1x
 
Median (4 companies)3.2x2.1x4.3x2.1x1.7x
Sical Logistics ($SICAL)6.4x7.3x8.1x9.9x