Modern Steels reports 20.3% revenue growth in FY2015 and almost no change in EBITDA Margin of 1.7%
28-05-2015 • About Modern Steels (
$MDRNSTL) • By InTwits
Modern Steels reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 1.7% in FY2015, 2.0% in FY2014, -1.2% in FY2013, 2.1% in FY2012, 8.1% in FY2011.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Modern Steels ($MDRNSTL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,469 | 3,380 | 2,613 | 2,631 | 3,164 | 20.3% |
| EBITDA | 281 | 71 | -32 | 53 | 55 | 4.3% |
| Net Income | 82 | -98 | -137 | -107 | -122 | |
Balance Sheet
|
|---|
| Cash | 41 | 47 | 52 | | | |
| Short Term Debt | 831 | 951 | 489 | | | |
| Long Term Debt | 227 | 170 | 642 | | | |
Cash flow
|
|---|
| Capex | 10 | 57 | | | | |
Ratios
|
|---|
| Revenue growth | 19.8% | -2.6% | -22.7% | 0.7% | 20.3% | |
| EBITDA growth | 6.0% | -74.8% | -145.4% | -264.6% | 4.3% | |
| EBITDA Margin | 8.1% | 2.1% | -1.2% | 2.0% | 1.7% | -0.3% |
| Net Income Margin | 2.4% | -2.9% | -5.2% | -4.1% | -3.8% | 0.2% |
| CAPEX, % of revenue | 0.3% | 1.7% | | | | 0.0% |
| ROIC | 15.1% | 1.6% | -5.2% | | | 0.0% |
| ROE | 15.8% | -18.6% | -33.4% | | | 0.0% |
| Net Debt/EBITDA | 3.6x | 15.1x | | 0.0x | 0.0x | 0.0x |
Revenue and profitability
Modern Steels's Revenue jumped on 20.3% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 39.8 pp from -76.1% to -36.3% in FY2015.
Net Income marign showed almost no change in FY2015.
Management team
The company's CEO is Krishan Kumar Goyal. Krishan Kumar Goyal has 40 years tenure at the company.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below we provide Modern Steels benchmarking against other companies in Iron & Steel/Interm.Products 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 |
|---|
| 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 ($VISASTEEL) | -12.5% | 3.3% | -24.1% | 42.0% | |
| |
|---|
| Median (31 companies) | -31.1% | 12.5% | 8.8% | 3.4% | 7.7% |
|---|
| Modern Steels ($MDRNSTL) | | -2.6% | -22.7% | 0.7% | 20.3% |
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 ($JAICORPLTD) | 18.4% | 14.1% | 16.3% | 16.0% | 12.7% |
| |
|---|
| Median (28 companies) | 13.4% | 9.5% | 9.2% | 7.4% | 9.3% |
|---|
| Modern Steels ($MDRNSTL) | 8.1% | 2.1% | -1.2% | 2.0% | 1.7% |
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 ($SAIL) | 25.3% | 20.9% | 20.7% | 19.3% | |
| |
|---|
| Median (21 companies) | 12.3% | 9.7% | 11.0% | 7.1% | 5.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($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% | 7.2% | 5.7% | 5.8% | 9.7% |
|---|
| Modern Steels ($MDRNSTL) | 15.1% | 1.6% | -5.2% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jai Balaji Industries ($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 | 4.2x | 4.3x | 3.4x | 1.6x |
|---|
| Modern Steels ($MDRNSTL) | 3.6x | 15.1x | | 0.0x | 0.0x |
