Gujarat Mineral Development Corporation CAPEX dropped on 60.8% in 2015 while Revenue surged on 11.6%
28-05-2015 • About Gujarat Mineral Development Corporation (
$GMDCLTD) • By InTwits
Gujarat Mineral Development Corporation reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gujarat Mineral Development Corporation has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.1%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 762 in FY2015, 1,946 in FY2014, 1,650 in FY2013, 3,346 in FY2012, 2,776 in FY2011
- The company has business model with average profitability: ROIC is at 10.6%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gujarat Mineral Development Corporation ($GMDCLTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 14,211 | 16,293 | 16,676 | 12,897 | 14,393 | 11.6% |
| EBITDA | 6,680 | 7,718 | 9,264 | 6,175 | 5,219 | -15.5% |
| Net Income | 3,751 | 4,868 | 6,008 | 4,391 | 5,009 | 14.1% |
Balance Sheet
|
|---|
| Cash | 327 | 550 | 552 | 401 | 101 | -74.9% |
| Short Term Debt | 1,777 | 303 | 352 | 238 | 99 | -58.5% |
| Long Term Debt | 521 | 0 | 0 | 0 | 6,688 | |
Cash flow
|
|---|
| Capex | 2,776 | 3,346 | 1,650 | 1,946 | 762 | -60.8% |
Ratios
|
|---|
| Revenue growth | -17.1% | 14.7% | 2.3% | -22.7% | 11.6% | |
| EBITDA growth | | 15.5% | 20.0% | -33.3% | -15.5% | |
| EBITDA Margin | 47.0% | 47.4% | 55.5% | 47.9% | 36.3% | -11.6% |
| Net Income Margin | 26.4% | 29.9% | 36.0% | 34.0% | 34.8% | 0.8% |
| CAPEX, % of revenue | 19.5% | 20.5% | 9.9% | 15.1% | 5.3% | -9.8% |
| ROIC | | 28.9% | 30.8% | 16.3% | 10.6% | -5.7% |
| ROE | | 26.2% | 26.2% | 16.3% | 16.4% | 0.1% |
| Net Debt/EBITDA | 0.3x | -0.0x | -0.0x | -0.0x | 1.3x | 1.3x |
Revenue and profitability
Gujarat Mineral Development Corporation's Revenue surged on 11.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.8 pp from 9.8% to 11.7% in FY2015.
Net Income marign increased slightly on 0.76 pp from 34.0% to 34.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.3%. CAPEX/Revenue dropped on 15.2 pp from 20.5% in FY2012 to 5.3% in FY2015. For the last three years the average CAPEX/Revenue was 10.1%.
Return on investment
The company operates at good ROE (16.41%) while ROIC is low (10.58%). ROIC decreased on 5.7 pp from 16.3% to 10.6% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA jumped on 1.3x from -0.026x to 1.3x in FY2015. Debt surged on 2,746% in FY2015 while cash dropped on 74.9% in FY2015.
Appendix 1: Peers in Coal
Below you can find Gujarat Mineral Development Corporation benchmarking vs. other companies in Coal 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 |
|---|
| Coal India ($COALINDIA) | | 24.3% | 9.4% | 0.7% | 4.7% |
| Gujarat Nre Coke ($GUJNRECOKE) | | -22.9% | 45.1% | -54.1% | -59.4% |
| Gujarat Nre Coke ($GUJNREDVR) | | -22.9% | 45.1% | -54.1% | -59.4% |
| |
|---|
| Median (3 companies) | | -22.9% | 45.1% | -54.1% | -59.4% |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | | 14.7% | 2.3% | -22.7% | 11.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coal India ($COALINDIA) | 26.9% | 25.3% | 26.7% | 25.9% | 24.1% |
| Gujarat Nre Coke ($GUJNRECOKE) | 25.0% | 36.0% | 30.8% | -76.1% | -36.3% |
| Gujarat Nre Coke ($GUJNREDVR) | 25.0% | 36.0% | 30.8% | -76.1% | -36.3% |
| |
|---|
| Median (3 companies) | 25.0% | 36.0% | 30.8% | -76.1% | -36.3% |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 47.0% | 47.4% | 55.5% | 47.9% | 36.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coal India ($COALINDIA) | 5.1% | 5.5% | 3.6% | 6.0% | 6.8% |
| Gujarat Nre Coke ($GUJNRECOKE) | 41.4% | 103.1% | 47.0% | 0.0% | 0.0% |
| Gujarat Nre Coke ($GUJNREDVR) | 41.4% | 103.1% | 47.0% | 0.0% | 0.0% |
| |
|---|
| Median (3 companies) | 41.4% | 103.1% | 47.0% | 0.0% | 0.0% |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 19.5% | 20.5% | 9.9% | 15.1% | 5.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coal India ($COALINDIA) | 31.0% | 28.7% | 28.9% | 30.3% | 35.3% |
| Gujarat Nre Coke ($GUJNRECOKE) | 5.0% | 5.7% | 4.2% | -13.3% | -5.0% |
| Gujarat Nre Coke ($GUJNREDVR) | 5.0% | 5.7% | 4.2% | -13.3% | -5.0% |
| |
|---|
| Median (3 companies) | 5.0% | 5.7% | 4.2% | -13.3% | -5.0% |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | | 28.9% | 30.8% | 16.3% | 10.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coal India ($COALINDIA) | -3.3x | -3.6x | -3.3x | -2.9x | -2.7x |
| |
|---|
| Median (1 company) | 5.0x | 7.5x | 7.4x | -2.9x | -2.7x |
|---|
| Gujarat Mineral Development Corporation ($GMDCLTD) | 0.3x | -0.0x | -0.0x | -0.0x | 1.3x |
