Gallantt Metal EBITDA surged on 34.7% in 2015 and Revenue increased on 7.7%
28-05-2015 • About Gallantt Metal (
$GALLANTT) • By InTwits
Gallantt Metal reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 9.0% in FY2015 vs. 7.2% in FY2014 vs. 8.8% in FY2011
- Gallantt Metal has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 256 in FY2015, 477 in FY2014, 262 in FY2013, 301 in FY2012, 549 in FY2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gallantt Metal ($GALLANTT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,567 | 5,853 | 6,627 | 6,690 | 7,203 | 7.7% |
| EBITDA | 488 | 456 | 555 | 482 | 649 | 34.7% |
| Net Income | 229 | 145 | 318 | 151 | 339 | 125.5% |
Balance Sheet
|
|---|
| Cash | 2 | 3 | 25 | 25 | 19 | -25.9% |
| Short Term Debt | 314 | 791 | 368 | 1,212 | 911 | -24.8% |
| Long Term Debt | 887 | 379 | 217 | 63 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 289 | 186 | 129 | 291 | 214 | -26.5% |
Ratios
|
|---|
| Revenue growth | -33.3% | 5.1% | 13.2% | 0.9% | 7.7% | |
| EBITDA growth | -23.2% | -6.7% | 21.8% | -13.2% | 34.7% | |
| EBITDA Margin | 8.8% | 7.8% | 8.4% | 7.2% | 9.0% | 1.8% |
| Net Income Margin | 4.1% | 2.5% | 4.8% | 2.3% | 4.7% | 2.5% |
| CAPEX, % of revenue | 5.2% | 3.2% | 1.9% | 4.3% | 3.0% | -1.4% |
| ROIC | 9.7% | 8.7% | 11.7% | 8.5% | 11.7% | 3.3% |
| ROE | 13.1% | 7.5% | 14.7% | 6.3% | 12.8% | 6.6% |
| Net Debt/EBITDA | 2.5x | 2.6x | 1.0x | 2.6x | 1.4x | -1.2x |
Revenue and profitability
Gallantt Metal's Revenue increased on 7.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.6 pp from 7.5% to 2.9% in FY2015.
Net Income marign increased on 2.5 pp from 2.3% to 4.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Gallantt Metal's CAPEX/Revenue was 3.0% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 3.1%.
Return on investment
The company operates at good ROE (12.83%) while ROIC is low (11.71%). ROIC increased on 3.3 pp from 8.5% to 11.7% in FY2015. ROE increased on 6.6 pp from 6.3% to 12.8% in FY2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 2.6x to 1.4x in FY2015. Debt dropped on 28.6% in FY2015 while cash dropped on 25.9% in FY2015.
Valuation
Gallantt Metal's trades at EV/EBITDA 4.1x and P/E 5.2x while industy averages are 10.5x and 26.1x. Gallantt Metal's EV/(EBITDA-CAPEX) is 6.1x with the industry average at 4.7x.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below you can find Gallantt Metal benchmarking vs. other companies in Iron & Steel/Interm.Products 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 |
|---|
| Inducto Steel ($INDCTST) | | | 54.5% | 150.2% | |
| Kamdhenu Ispat ($KIL) | -65.5% | 25.7% | 13.7% | 68.3% | |
| Metkore Alloys & Industries ($METKORE) | | 43.7% | -10.9% | 53.4% | -15.7% |
| Tata Metaliks ($TATAMETALI) | | -7.0% | -19.0% | 44.6% | -1.3% |
| Visa Steel ($VISASTEEL) | -12.5% | 3.3% | -24.1% | 42.0% | |
| |
|---|
| Median (31 companies) | -31.1% | 12.5% | 3.2% | 3.4% | 9.2% |
|---|
| Gallantt Metal ($GALLANTT) | | 5.1% | 13.2% | 0.9% | 7.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 48.3% | 37.5% | 30.5% | 28.1% | 29.8% |
| Bhushan Steel ($BHUSANSTL) | 29.0% | 31.2% | 32.3% | 28.1% | 20.4% |
| Sarda Energy & Minerals ($SARDAEN) | 15.2% | 16.3% | 21.5% | 21.3% | 21.5% |
| Jsw Steel ($JSWSTEEL) | 20.2% | 17.8% | 17.1% | 17.9% | 17.7% |
| Jai Corp ($JAICORPLTD) | 18.4% | 14.1% | 16.3% | 16.0% | 12.7% |
| |
|---|
| Median (28 companies) | 13.4% | 9.5% | 9.2% | 7.2% | 9.3% |
|---|
| Gallantt Metal ($GALLANTT) | 8.8% | 7.8% | 8.4% | 7.2% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 64.7% | 34.2% | 47.6% | 69.6% | 26.4% |
| Bhushan Steel ($BHUSANSTL) | 81.1% | 47.2% | 44.0% | 50.4% | 16.2% |
| Jayaswal Neco Industries ($JAYNECOIND) | 27.9% | 20.4% | 44.0% | 31.1% | |
| Surana Industries ($SURANAIND) | | 41.3% | 54.8% | 21.5% | |
| Steel Authority Of India ($SAIL) | 25.3% | 20.9% | 20.7% | 19.3% | |
| |
|---|
| Median (20 companies) | 12.3% | 9.7% | 11.6% | 7.7% | 5.4% |
|---|
| Gallantt Metal ($GALLANTT) | 5.2% | 3.2% | 1.9% | 4.3% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($TATAMETALI) | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% |
| Nova Iron & Steel ($NOVIS) | | | | 15.4% | |
| Kirloskar Ferrous Industries ($KIRLFER) | 20.0% | 19.1% | 16.8% | 12.4% | 14.7% |
| Pennar Industries ($PENIND) | 31.6% | 26.8% | 18.4% | 12.3% | 15.7% |
| Jsw Steel ($JSWSTEEL) | 9.7% | 11.0% | 10.3% | 12.1% | 9.9% |
| |
|---|
| Median (40 companies) | 9.4% | 6.8% | 5.5% | 5.5% | 7.6% |
|---|
| Gallantt Metal ($GALLANTT) | 9.7% | 8.7% | 11.7% | 8.5% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jai Balaji Industries ($JAIBALAJI) | 5.5x | | | 89.7x | |
| Visa Steel ($VISASTEEL) | 6.9x | 20.1x | | 24.4x | |
| Ismt ($ISMTLTD) | 4.4x | 5.3x | 9.8x | 19.9x | |
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | |
| Bhushan Steel ($BHUSANSTL) | 8.1x | 6.3x | 8.6x | 12.9x | 17.7x |
| |
|---|
| Median (29 companies) | 3.8x | 4.6x | 4.4x | 3.4x | 1.6x |
|---|
| Gallantt Metal ($GALLANTT) | 2.5x | 2.6x | 1.0x | 2.6x | 1.4x |
