Avt Natural Products reports 37.3% Net Income decline and 8.4 pp EBITDA Margin decline from 25.9% to 17.5%
29-05-2015 • About Avt Natural Products (
$AVTNPL) • By InTwits
Avt Natural Products reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avt Natural Products is a company in decline: FY2015 revenue growth was -6.9%, 5 years revenue CAGR was -3.2%
- Avt Natural Products has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 4.2%.
- CAPEX is quite volatile: 106 in FY2015, 92.4 in FY2014, 133 in FY2013, 54.9 in FY2012, 29.3 in FY2011
- The company has highly profitable business model: ROIC is at 19.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Avt Natural Products ($AVTNPL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,475 | 2,386 | 2,670 | 2,806 | 2,613 | -6.9% |
| EBITDA | 255 | 896 | 823 | 726 | 457 | -37.0% |
| Net Income | 111 | 548 | 478 | 421 | 264 | -37.3% |
Balance Sheet
|
|---|
| Cash | 16 | 29 | 83 | 125 | 120 | -4.3% |
| Short Term Debt | 510 | 361 | 346 | 54 | 68 | 26.0% |
| Long Term Debt | 48 | 26 | 9 | 1 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 29 | 55 | 133 | 92 | 106 | 14.3% |
Ratios
|
|---|
| Revenue growth | -51.9% | 61.7% | 11.9% | 5.1% | -6.9% | |
| EBITDA growth | 46.9% | 250.9% | -8.2% | -11.8% | -37.0% | |
| EBITDA Margin | 17.3% | 37.6% | 30.8% | 25.9% | 17.5% | -8.4% |
| Net Income Margin | 7.5% | 23.0% | 17.9% | 15.0% | 10.1% | -4.9% |
| CAPEX, % of revenue | 2.0% | 2.3% | 5.0% | 3.3% | 4.0% | 0.7% |
| ROIC | 19.1% | 58.2% | 41.5% | 32.8% | 19.0% | -13.8% |
| ROE | 20.8% | 69.3% | 39.8% | 27.5% | 14.9% | -12.6% |
| Net Debt/EBITDA | 2.1x | 0.4x | 0.3x | -0.1x | -0.1x | -0.0x |
Revenue and profitability
Avt Natural Products's Revenue decreased on 6.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.5% to 9.4% in FY2015.
Net Income marign decreased on 4.9 pp from 15.0% to 10.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Avt Natural Products had CAPEX/Revenue of 4.0%. CAPEX/Revenue increased slightly on 1.7 pp from 2.3% in FY2012 to 4.0% in FY2015. For the last three years the average CAPEX/Revenue was 4.1%.
Return on investment
The company operates at good ROIC (18.97%) and ROE (14.91%). ROIC dropped on 13.8 pp from 32.8% to 19.0% in FY2015. ROE dropped on 12.6 pp from 27.5% to 14.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.1x. Net Debt / EBITDA decreased slightly on 0.016x from -0.1x to -0.1x in FY2015. Debt surged on 24.6% in FY2015 while cash decreased on 4.3% in FY2015.
Valuation
Avt Natural Products's trades at EV/EBITDA 9.9x and P/E 17.3x while industy averages are 10.5x and 26.1x. Avt Natural Products's EV/(EBITDA-CAPEX) is 12.8x with the industry average at 4.7x.
Appendix 1: Peers in Other Agricultural Products
Below you can find Avt Natural Products benchmarking vs. other companies in Other Agricultural 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 |
|---|
| Unique Organics ($UNIQUEO) | | 102.1% | 35.2% | 51.2% | -19.9% |
| Kaveri Seed Company ($KSCL) | | 59.4% | 91.2% | 42.0% | 14.8% |
| Freshtrop Fruits ($FRSHTRP) | -57.2% | 14.7% | 43.8% | 29.1% | |
| Olympic Oil Industries ($OLYOI) | -98.4% | 1,600.6% | 160.6% | 21.1% | |
| Kohinoor Foods ($KOHINOOR) | | 5.4% | 13.4% | 16.2% | -5.9% |
| |
|---|
| Median (9 companies) | -57.9% | 26.0% | 35.2% | 16.2% | -0.8% |
|---|
| Avt Natural Products ($AVTNPL) | | 61.7% | 11.9% | 5.1% | -6.9% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaveri Seed Company ($KSCL) | 23.0% | 20.7% | 19.6% | 21.9% | 26.7% |
| Kohinoor Foods ($KOHINOOR) | 12.7% | 4.7% | 10.9% | 11.2% | 0.2% |
| Freshtrop Fruits ($FRSHTRP) | 7.8% | 9.3% | 8.9% | 9.8% | |
| Vikas Granaries ($VIKASGRAN) | 30.4% | 10.6% | 14.2% | 9.8% | 5.0% |
| Agro Tech Foods ($ATFL) | 3.9% | 7.6% | 8.3% | 9.2% | 8.0% |
| |
|---|
| Median (7 companies) | 5.9% | 4.7% | 8.3% | 9.8% | 5.0% |
|---|
| Avt Natural Products ($AVTNPL) | 17.3% | 37.6% | 30.8% | 25.9% | 17.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaveri Seed Company ($KSCL) | 5.4% | 2.9% | 5.9% | 2.5% | 7.1% |
| Agro Tech Foods ($ATFL) | 4.2% | 4.1% | 6.0% | 6.3% | 5.6% |
| Kohinoor Foods ($KOHINOOR) | 3.7% | 1.6% | 1.5% | 1.0% | 0.3% |
| |
|---|
| Median (3 companies) | 3.7% | 1.0% | 2.9% | 2.5% | 5.6% |
|---|
| Avt Natural Products ($AVTNPL) | 2.0% | 2.3% | 5.0% | 3.3% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kaveri Seed Company ($KSCL) | 21.0% | 27.5% | 41.1% | 46.8% | 45.9% |
| Agro Tech Foods ($ATFL) | 13.7% | 24.0% | 25.3% | 21.2% | 13.9% |
| Kohinoor Foods ($KOHINOOR) | 11.2% | 3.1% | 8.8% | 10.3% | -1.3% |
| Indrayani Biotech ($INDRANIB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Himalya International ($HIMIN) | 12.8% | 9.4% | 10.2% | | |
| |
|---|
| Median (13 companies) | 11.2% | 8.3% | 8.9% | 15.7% | 7.0% |
|---|
| Avt Natural Products ($AVTNPL) | 19.1% | 58.2% | 41.5% | 32.8% | 19.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kohinoor Foods ($KOHINOOR) | 7.7x | 19.2x | 7.8x | 6.1x | 296.6x |
| Agro Tech Foods ($ATFL) | -1.6x | -0.8x | -0.2x | 0.1x | 0.3x |
| Freshtrop Fruits ($FRSHTRP) | 7.0x | 3.3x | 2.5x | 0.0x | |
| Himalya International ($HIMIN) | 3.3x | 4.5x | 2.9x | 0.0x | |
| Flex Foods ($FLEXFO) | 0.8x | 0.8x | 0.9x | 0.0x | |
| |
|---|
| Median (10 companies) | 3.1x | 3.6x | 2.4x | 0.0x | 0.0x |
|---|
| Avt Natural Products ($AVTNPL) | 2.1x | 0.4x | 0.3x | -0.1x | -0.1x |
