Sudarshan Chemical Industries reports 8.3% revenue growth in FY2015 and 1.2 pp EBITDA Margin decline from 11.9% to 10.7%
27-05-2015 • About Sudarshan Chemical Industries (
$SUDARSCHEM) • By InTwits
Sudarshan Chemical Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sudarshan Chemical Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.7%. At the same time it's a lot of higher than industry average of 5.1%.
- CAPEX is quite volatile: 567 in FY2015, 309 in FY2014, 1,207 in FY2013, 875 in FY2012, 822 in FY2011
- The company has business model with average profitability: ROIC is at 11.9%
- It operates with high leverage: Net Debt/EBITDA is 3.2x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sudarshan Chemical Industries ($SUDARSCHEM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,241 | 8,003 | 8,729 | 11,186 | 12,117 | 8.3% |
| EBITDA | 868 | 846 | 780 | 1,333 | 1,298 | -2.6% |
| Net Income | 482 | 336 | 220 | 350 | 544 | 55.2% |
Balance Sheet
|
|---|
| Cash | 116 | 337 | 418 | 147 | 212 | 44.5% |
| Short Term Debt | 963 | 1,149 | 2,212 | 2,574 | 2,712 | 5.4% |
| Long Term Debt | 1,051 | 1,234 | 2,155 | 1,831 | 1,613 | -11.9% |
Cash flow
|
|---|
| Capex | 822 | 875 | 1,207 | 309 | 567 | 83.5% |
Ratios
|
|---|
| Revenue growth | -49.4% | 10.5% | 9.1% | 28.2% | 8.3% | |
| EBITDA growth | 7.1% | -2.6% | -7.8% | 70.9% | -2.6% | |
| EBITDA Margin | 12.0% | 10.6% | 8.9% | 11.9% | 10.7% | -1.2% |
| Net Income Margin | 6.7% | 4.2% | 2.5% | 3.1% | 4.5% | 1.4% |
| CAPEX, % of revenue | 11.4% | 10.9% | 13.8% | 2.8% | 4.7% | 1.9% |
| ROIC | 20.8% | 14.1% | 8.5% | 13.2% | 11.9% | -1.3% |
| ROE | 27.0% | 14.4% | 8.8% | 13.3% | 20.4% | 7.0% |
| Net Debt/EBITDA | 2.2x | 2.4x | 5.1x | 3.2x | 3.2x | -0.0x |
Revenue and profitability
Sudarshan Chemical Industries's Revenue increased on 8.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from 6.8% to 14.6% in FY2015.
Net Income marign increased slightly on 1.4 pp from 3.1% to 4.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sudarshan Chemical Industries's CAPEX/Revenue was 4.7% in FY2015. CAPEX/Revenue decreased on 6.3 pp from 10.9% in FY2012 to 4.7% in FY2015. Average CAPEX/Revenue for the last three years was 7.1%.
Return on investment
The company operates at good ROE (20.38%) while ROIC is low (11.88%). ROIC decreased slightly on 1.3 pp from 13.2% to 11.9% in FY2015. ROE increased on 7.0 pp from 13.3% to 20.4% in FY2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA decreased on 0.026x from 3.2x to 3.2x in FY2015. Debt decreased slightly on 1.8% in FY2015 while cash surged on 44.5% in FY2015.
Valuation
Sudarshan Chemical Industries's trades at EV/EBITDA 8.8x and P/E 13.4x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 15.6x with the industry average at 4.7x.
Appendix 1: Peers in Specialty Chemicals
Below you can find Sudarshan Chemical Industries benchmarking vs. other companies in Specialty 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 |
|---|
| Dai-Ichi Karkaria ($DAICHI) | | 20.7% | 31.4% | 45.4% | 22.8% |
| Dynemic Products ($DYNPRO) | -55.8% | 27.4% | -0.0% | 40.6% | |
| Camlin Fine Sciences ($CAMLINFIN) | | 95.3% | 11.4% | 36.1% | 9.8% |
| Vinati Organics ($VINATIORGA) | | 38.7% | 23.6% | 25.9% | 10.9% |
| Kiri Industries ($KIRIINDUS) | 244.4% | 7.9% | -86.5% | 24.8% | |
| |
|---|
| Median (27 companies) | -51.4% | 20.9% | 14.1% | 11.3% | 9.8% |
|---|
| Sudarshan Chemical Industries ($SUDARSCHEM) | | 10.5% | 9.1% | 28.2% | 8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.7% | 21.8% | 22.7% | 24.9% |
| Indian Toners & Developers ($INDTONER) | | | | | 22.6% |
| Solar Industries India ($SOLARINDS) | 18.1% | 18.5% | 17.5% | 17.9% | 19.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.1% | 18.0% | 15.5% | 17.4% | 17.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% |
| |
|---|
| Median (20 companies) | 11.2% | 10.7% | 12.8% | 10.6% | 14.8% |
|---|
| Sudarshan Chemical Industries ($SUDARSCHEM) | 12.0% | 10.6% | 8.9% | 11.9% | 10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adi Finechem ($ADIFINCHM) | 8.2% | 7.3% | 4.8% | 12.6% | 16.9% |
| Solar Industries India ($SOLARINDS) | 14.2% | 13.0% | 9.9% | 12.3% | 10.3% |
| Nitta Gelatin India ($NITTAGELA) | 21.3% | 8.8% | 4.6% | 8.5% | |
| Meghmani Organics ($MEGH) | 9.9% | 10.2% | 10.3% | 7.9% | 4.6% |
| Camlin Fine Sciences ($CAMLINFIN) | 7.5% | 4.3% | 5.7% | 7.1% | 5.1% |
| |
|---|
| Median (18 companies) | 7.0% | 4.9% | 4.5% | 4.5% | 4.8% |
|---|
| Sudarshan Chemical Industries ($SUDARSCHEM) | 11.4% | 10.9% | 13.8% | 2.8% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adi Finechem ($ADIFINCHM) | 27.6% | 30.6% | 29.8% | 46.4% | 26.3% |
| Vinati Organics ($VINATIORGA) | 31.4% | 29.6% | 26.2% | 30.6% | 34.8% |
| Pidilite Industries ($PIDILITIND) | 29.3% | 27.4% | 29.3% | 29.8% | 29.0% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% |
| Plastiblends India ($PLASTIBLEN) | 19.4% | 18.3% | 15.8% | 24.0% | 24.5% |
| |
|---|
| Median (35 companies) | 14.8% | 15.3% | 15.0% | 11.2% | 24.5% |
|---|
| Sudarshan Chemical Industries ($SUDARSCHEM) | 20.8% | 14.1% | 8.5% | 13.2% | 11.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cochin Minerals & Rutile ($COCHINM) | 0.7x | -0.0x | -0.0x | 32.3x | |
| Alkali Metals ($ALKALI) | 4.3x | | 5.1x | 11.6x | 0.0x |
| Kiri Industries ($KIRIINDUS) | 3.9x | 8.2x | 31.3x | 10.6x | |
| Vikas Globalone ($VIKASGLOB) | 0.0x | 2.5x | 4.4x | 4.9x | |
| Jayant Agro-Organics ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.0x |
|---|
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.2x | 2.4x | 5.1x | 3.2x | 3.2x |
