Kcp Sugar & Industries Corporation Net Income dropped on 142% in 2015 and EBITDA Margin dropped on 20.0 pp from 15.5% to -4.6%
29-05-2015 • About Kcp Sugar & Industries Corporation (
$KCPSUGIND) • By InTwits
Kcp Sugar & Industries Corporation reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kcp Sugar & Industries Corporation doesn't have a profitable business model yet: FY2015 ROIC is -8.8%
- EBITDA Margin is quite volatile: -4.6% in FY2015, 15.5% in FY2014, 17.3% in FY2013, 12.2% in FY2012, 9.9% in FY2011
- Kcp Sugar & Industries Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 10.7%.
- CAPEX is quite volatile: 150 in FY2015, 17.3 in FY2014, 71.5 in FY2013, 47.8 in FY2012, 52.3 in FY2011
- The company has unprofitable business model: ROIC is at -8.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kcp Sugar & Industries Corporation ($KCPSUGIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,333 | 3,594 | 4,508 | 3,855 | 4,265 | 10.6% |
| EBITDA | 230 | 437 | 779 | 596 | -195 | -132.7% |
| Net Income | 128 | 285 | 409 | 331 | -139 | -142.1% |
Balance Sheet
|
|---|
| Cash | 64 | 49 | 51 | 69 | 101 | 45.7% |
| Short Term Debt | 763 | 814 | 319 | 392 | 452 | 15.3% |
| Long Term Debt | 291 | 278 | 181 | 480 | 538 | 12.0% |
Cash flow
|
|---|
| Capex | 52 | 48 | 72 | 17 | 150 | 770.2% |
Ratios
|
|---|
| Revenue growth | -54.3% | 54.1% | 25.4% | -14.5% | 10.6% | |
| EBITDA growth | -49.7% | 89.8% | 78.2% | -23.5% | -132.7% | |
| EBITDA Margin | 9.9% | 12.2% | 17.3% | 15.5% | -4.6% | -20.0% |
| Net Income Margin | 5.5% | 7.9% | 9.1% | 8.6% | -3.3% | -11.9% |
| CAPEX, % of revenue | 2.2% | 1.3% | 1.6% | 0.4% | 3.5% | 3.1% |
| ROIC | 4.2% | 10.1% | 21.0% | 14.5% | -8.8% | -23.3% |
| ROE | 7.2% | 14.9% | 19.0% | 13.8% | -5.8% | -19.6% |
| Net Debt/EBITDA | 4.3x | 2.4x | 0.6x | 1.3x | | -1.3x |
Revenue and profitability
The company's Revenue jumped on 10.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 20.0 pp from 15.5% to -4.6% in FY2015.
Net Income marign dropped on 11.9 pp from 8.6% to -3.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Kcp Sugar & Industries Corporation had CAPEX/Revenue of 3.5%. CAPEX/Revenue increased on 2.2 pp from 1.3% in FY2012 to 3.5% in FY2015. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-8.76%) and ROE (-5.78%). ROIC dropped on 23.3 pp from 14.5% to -8.8% in FY2015. ROE dropped on 19.6 pp from 13.8% to -5.8% in FY2015.
Leverage (Debt)
Debt level is -3.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 1.3x to in FY2015. Debt surged on 13.5% in FY2015 while cash surged on 45.7% in FY2015.
Appendix 1: Peers in Sugar
Below you can find Kcp Sugar & Industries Corporation benchmarking vs. other companies in Sugar 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 |
|---|
| K.M.Sugar Mills ($KMSUGAR) | | -11.3% | 7.0% | 48.3% | 36.1% |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | | 9.8% | 35.8% | 19.4% | -3.5% |
| Dcm Shriram Industries ($DCMSRMIND) | | 8.7% | 13.9% | 20.0% | -3.9% |
| Shree Renuka Sugars ($RENUKA) | | | | 11.5% | -12.6% |
| Sir Shadi Lal Enterprises ($SSLEL) | | 8.3% | 13.8% | 9.9% | -14.8% |
| |
|---|
| Median (7 companies) | -28.9% | 3.9% | 13.7% | 19.7% | -12.6% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | | 54.1% | 25.4% | -14.5% | 10.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| K.M.Sugar Mills ($KMSUGAR) | 4.7% | 6.8% | | 10.1% | |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 9.8% | 11.6% | 15.0% | 9.1% | 9.9% |
| Shree Renuka Sugars ($RENUKA) | 14.5% | | 15.1% | 8.5% | 4.7% |
| Dcm Shriram Industries ($DCMSRMIND) | 4.1% | 4.8% | 6.3% | 7.1% | |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 9.1% | 12.2% | 13.3% | 6.9% | 0.9% |
| |
|---|
| Median (6 companies) | 6.9% | 5.8% | 12.0% | 7.8% | 2.8% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 9.9% | 12.2% | 17.3% | 15.5% | -4.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 2.5% | 2.1% | 14.6% | 15.1% | 4.4% |
| Shree Renuka Sugars ($RENUKA) | | | 3.5% | 2.6% | 1.9% |
| Dcm Shriram Industries ($DCMSRMIND) | 3.4% | 2.4% | 2.7% | 2.1% | |
| |
|---|
| Median (3 companies) | 3.0% | 2.0% | 4.5% | 2.6% | 3.1% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 2.2% | 1.3% | 1.6% | 0.4% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dcm Shriram Industries ($DCMSRMIND) | 2.7% | 4.0% | 7.3% | 11.2% | |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 0.9% | 3.6% | 6.0% | 4.4% | 4.7% |
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 6.0% | 10.5% | 12.7% | 3.4% | |
| Uttam Sugar Mills ($UTTAMSUGAR) | 6.0% | -0.3% | 10.0% | 0.0% | |
| Shree Renuka Sugars ($RENUKA) | 5.8% | 0.0% | 6.6% | -1.2% | -9.3% |
| |
|---|
| Median (11 companies) | 4.2% | 3.8% | 6.3% | 3.4% | -2.3% |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 4.2% | 10.1% | 21.0% | 14.5% | -8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rajshree Sugars & Chemicals ($RAJSREESUG) | 7.8x | 5.3x | 4.2x | 9.4x | 0.0x |
| Shree Renuka Sugars ($RENUKA) | 6.6x | | 4.0x | 7.8x | 13.5x |
| Dalmia Bharat Sugar And Industries ($DALMIASUG) | 9.5x | 7.5x | 5.1x | 7.1x | 6.9x |
| Dcm Shriram Industries ($DCMSRMIND) | 8.4x | 8.0x | 5.7x | 3.2x | |
| K.M.Sugar Mills ($KMSUGAR) | 5.9x | 3.7x | | 1.4x | |
| |
|---|
| Median (6 companies) | 8.0x | 6.4x | 5.1x | 5.1x | 6.9x |
|---|
| Kcp Sugar & Industries Corporation ($KCPSUGIND) | 4.3x | 2.4x | 0.6x | 1.3x | |
