Asahi Industries reports 104% revenue growth in FY2015 and 3.2 pp EBITDA Margin decline from 5.8% to 2.5%
29-05-2015 • About Asahi Industries (
$ASAHIIND) • By InTwits
Asahi Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 2.5% in FY2015 vs. 5.8% in FY2014 vs. 10.4% in FY2011
- EBITDA Margin is quite volatile: 2.5% in FY2015, 5.8% in FY2014, 7.4% in FY2013, 9.5% in FY2012, 10.4% in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Asahi Industries ($ASAHIIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,244 | 1,695 | 2,085 | 2,593 | 5,288 | 103.9% |
| EBITDA | 129 | 161 | 155 | 150 | 134 | -10.1% |
| Net Income | 10 | 19 | 8 | 9 | 2 | -79.5% |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 2 | | | |
| Short Term Debt | 0 | 0 | 0 | | | |
| Long Term Debt | 1,270 | 1,366 | 1,350 | | | |
Cash flow
|
|---|
| Capex | 90 | 25 | | | | |
Ratios
|
|---|
| Revenue growth | -79.9% | 36.2% | 23.0% | 24.4% | 103.9% | |
| EBITDA growth | 7.8% | 24.6% | -3.9% | -3.5% | -10.1% | |
| EBITDA Margin | 10.4% | 9.5% | 7.4% | 5.8% | 2.5% | -3.2% |
| Net Income Margin | 0.8% | 1.1% | 0.4% | 0.4% | 0.0% | -0.3% |
| CAPEX, % of revenue | 7.2% | 1.4% | | | | 0.0% |
| ROIC | 0.1% | 1.8% | 1.3% | | | 0.0% |
| ROE | 14.3% | 21.7% | 8.4% | | | 0.0% |
| Net Debt/EBITDA | 9.8x | 8.5x | 8.7x | 0.0x | 0.0x | 0.0x |
Revenue and profitability
The company's Revenue surged on 104% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.3 pp from 10.2% to 5.9% in FY2015.
Net Income marign showed almost no change in FY2015.
Appendix 1: Peers in Textiles
Below we provide Asahi Industries benchmarking against other companies in Textiles 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 |
|---|
| Olympia Industries ($OLYMPTX) | -99.6% | -58.0% | -96.6% | 74,809.1% | |
| Gujarat Cotex ($GUJCOTEX) | | -6.2% | -66.0% | 176.2% | -52.0% |
| T T ($TTL) | | -21.8% | 28.7% | 47.8% | -8.0% |
| Filatex India ($FILATEX) | | -2.7% | 158.7% | 44.5% | -11.4% |
| Gtn Textiles ($GTNTEX) | | -8.8% | 51.2% | 39.4% | -36.3% |
| |
|---|
| Median (73 companies) | -27.8% | 4.8% | 9.3% | 14.2% | -0.3% |
|---|
| Asahi Industries ($ASAHIIND) | | 36.2% | 23.0% | 24.4% | 103.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sil Investments ($SILINV) | | | | | 93.8% |
| Swadeshi Polytex ($SWADPOL) | | | | | 64.4% |
| Binny ($BINNY) | | | | | 60.9% |
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% |
| Premier Synthetics ($PREMSYN) | | | | | 25.9% |
| |
|---|
| Median (67 companies) | 12.9% | 6.3% | 9.5% | 10.1% | 8.2% |
|---|
| Asahi Industries ($ASAHIIND) | 10.4% | 9.5% | 7.4% | 5.8% | 2.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 0.2% | 1.9% | 2.6% | 8.0% | 42.3% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 2.4% | 18.6% | 24.1% | 6.8% | 16.8% |
| SRF ($SRF) | 0.0% | 0.0% | 18.7% | 20.0% | 11.4% |
| Welspun India ($WELSPUNIND) | 11.3% | 5.6% | 7.8% | 16.4% | 10.9% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 2.3% | 3.4% | 1.8% | 5.6% | 10.7% |
| |
|---|
| Median (18 companies) | 4.5% | 3.4% | 5.6% | 6.8% | 6.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 13.8% | 6.0% | 19.5% | 21.5% | 17.5% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 16.0% | 9.5% | 13.6% | 19.8% | 14.6% |
| Vardhman Textiles ($VTL) | 15.5% | 6.6% | 11.9% | 17.3% | 8.5% |
| Maral Overseas ($MARALOVER) | | 4.6% | 14.1% | 16.0% | |
| Rswm ($RSWM) | 17.4% | 2.2% | 15.2% | 15.5% | 11.8% |
| |
|---|
| Median (126 companies) | 10.1% | 3.6% | 9.3% | 9.2% | 9.0% |
|---|
| Asahi Industries ($ASAHIIND) | 0.1% | 1.8% | 1.3% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bombay Rayon Fashions ($BRFL) | 5.9x | 4.9x | 4.9x | 11.6x | 10.0x |
| Ruby Mills ($RUBYMILLS) | 15.9x | 12.6x | 15.3x | 10.8x | 8.6x |
| Dcm ($DCM) | 3.1x | 13.5x | 3.5x | 3.7x | 5.5x |
| Raymond ($RAYMOND) | 3.3x | 3.7x | 4.6x | 3.7x | 4.1x |
| Binny ($BINNY) | | | 12.0x | 0.0x | 4.0x |
| |
|---|
| Median (56 companies) | 3.7x | 3.8x | 3.2x | 0.0x | 0.0x |
|---|
| Asahi Industries ($ASAHIIND) | 9.8x | 8.5x | 8.7x | 0.0x | 0.0x |
