Madras Fertilizers reports 235% Net Income decline and 6.1% Revenue decline
29-05-2015 • About Madras Fertilizers (
$MADRASFERT) • By InTwits
Madras Fertilizers reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Madras Fertilizers is a company in decline: FY2015 revenue growth was -6.1%, 5 years revenue CAGR was -3.8%
- EBITDA Margin is quite volatile: -10.7% in FY2015, 61.2% in FY2014, 31.7% in FY2013, 64.5% in FY2012, 48.3% in FY2011
- Madras Fertilizers has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 48.5 in FY2015, 79.1 in FY2014, 311 in FY2013, 386 in FY2012, 116 in FY2011
- The company has unprofitable business model: ROIC is at -9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Madras Fertilizers ($MADRASFERT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,700 | 3,167 | 4,199 | 3,585 | 3,365 | -6.1% |
| EBITDA | 1,305 | 2,041 | 1,331 | 2,195 | -359 | -116.3% |
| Net Income | 1,699 | 1,120 | 244 | 1,000 | -1,347 | -234.6% |
Balance Sheet
|
|---|
| Cash | 94 | 571 | 58 | 228 | 177 | -22.3% |
| Short Term Debt | 751 | 4,723 | 6,107 | 8,904 | 3,594 | -59.6% |
| Long Term Debt | 6,515 | 3,077 | 2,620 | 2,292 | 1,965 | -14.3% |
Cash flow
|
|---|
| Capex | 116 | 386 | 311 | 79 | 49 | -38.7% |
Ratios
|
|---|
| Revenue growth | -33.8% | 17.3% | 32.6% | -14.6% | -6.1% | |
| EBITDA growth | -6.3% | 56.4% | -34.8% | 64.9% | -116.3% | |
| EBITDA Margin | 48.3% | 64.5% | 31.7% | 61.2% | -10.7% | -71.9% |
| Net Income Margin | 62.9% | 35.4% | 5.8% | 27.9% | -40.0% | -67.9% |
| CAPEX, % of revenue | 4.3% | 12.2% | 7.4% | 2.2% | 1.4% | -0.8% |
| ROIC | 52.6% | 44.7% | 18.0% | 23.9% | -9.5% | -33.4% |
| Net Debt/EBITDA | 5.5x | 3.5x | 6.5x | 5.0x | | -5.0x |
Revenue and profitability
The company's Revenue decreased on 6.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 71.9 pp from 61.2% to -10.7% in FY2015.
Net Income marign dropped on 67.9 pp from 27.9% to -40.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.4% in FY2015. The company's CAPEX/Revenue dropped on 10.7 pp from 12.2% in FY2012 to 1.4% in FY2015. Average CAPEX/Revenue for the last three years was 3.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is . Net Debt / EBITDA dropped on 5.0x from 5.0x to in FY2015. Debt dropped on 50.3% in FY2015 while cash dropped on 22.3% in FY2015.
Appendix 1: Peers in
Below we provide Madras Fertilizers benchmarking against other companies in 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 |
|---|
| Rane Engine Valve ($RANENGIN) | | 6.5% | -14.4% | -1.2% | 49.3% |
| Indbulbbph ($INDBULBBPH) | | -3.2% | -6.5% | 33.5% | 49.2% |
| Monetbbph ($MONETBBPH) | | 22.3% | 3.7% | 11.6% | 40.8% |
| Asleyf ($ASLEYF) | | 15.5% | -3.3% | -8.0% | 33.6% |
| Bharat Rasayan ($BHARATRA) | | 51.3% | 32.1% | 92.7% | 21.4% |
| |
|---|
| Median (15 companies) | -48.2% | 17.7% | 8.5% | 4.2% | 9.2% |
|---|
| Madras Fertilizers ($MADRASFERT) | | 17.3% | 32.6% | -14.6% | -6.1% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jenson & Nicholson Financial Services ($JNFSL) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Bombay Drugs & Pharmas ($BOMDRDM) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Southern Herbals ($SOUTHNHE) | | 0.0% | 0.0% | 0.0% | 0.0% |
| Tafnccpeq ($TAFNCCPEQ) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oswal Chemicals & Fertilizers ($OSWALCHEM) | | | | | 53.4% |
| Paushak ($PAUSHAK) | | | | | 25.6% |
| The United Nilgiri Tea Estates Company ($UNITEDTEA) | | | | | 24.7% |
| Indbulbbph ($INDBULBBPH) | 27.9% | 36.7% | 34.6% | 29.5% | 23.5% |
| Uplbbph ($UPLBBPH) | 18.8% | 18.2% | 18.3% | 18.8% | 20.0% |
| |
|---|
| Median (19 companies) | 13.4% | 12.8% | 11.3% | 14.5% | 10.7% |
|---|
| Madras Fertilizers ($MADRASFERT) | 48.3% | 64.5% | 31.7% | 61.2% | -10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 9.6% | 131.4% | 5.2% | 139.2% | 89.2% |
| Jklakbbph ($JKLAKBBPH) | 23.6% | 28.5% | 28.8% | 24.6% | 23.6% |
| Rilbbph ($RILBBPH) | 12.7% | 4.6% | 7.7% | 13.8% | 16.9% |
| Gkw ($GKW) | | | | | 15.5% |
| Paushak ($PAUSHAK) | | | | | 12.3% |
| |
|---|
| Median (16 companies) | 7.1% | 8.6% | 5.2% | 4.1% | 5.2% |
|---|
| Madras Fertilizers ($MADRASFERT) | 4.3% | 12.2% | 7.4% | 2.2% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bharat Rasayan ($BHARATRA) | 10.0% | 22.1% | 13.7% | 21.9% | 26.1% |
| Uplbbph ($UPLBBPH) | 16.3% | 17.1% | 15.9% | 18.2% | 22.1% |
| Ginni Filaments ($GINNIFIL) | 11.6% | -1.0% | 15.2% | 21.6% | 12.8% |
| Rane Brake Lining ($RANEBRAKE) | 15.3% | 14.1% | 7.9% | 11.1% | 12.8% |
| Asleyf ($ASLEYF) | 13.6% | 12.2% | 5.8% | -0.5% | 7.6% |
| |
|---|
| Median (25 companies) | 10.1% | 8.4% | 5.8% | 5.3% | 3.1% |
|---|
| Madras Fertilizers ($MADRASFERT) | 52.6% | 44.7% | 18.0% | 23.9% | -9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Monetbbph ($MONETBBPH) | 5.3x | 9.8x | 16.3x | 27.4x | 140.3x |
| Indbulbbph ($INDBULBBPH) | 8.5x | 4.3x | 4.8x | 5.5x | 9.6x |
| Jklakbbph ($JKLAKBBPH) | 3.0x | 2.1x | 2.3x | 5.3x | 5.5x |
| Asleyf ($ASLEYF) | 2.0x | 2.5x | 5.0x | 17.8x | 5.0x |
| Rane Engine Valve ($RANENGIN) | 1.7x | 2.1x | 11.3x | 4.5x | 4.8x |
| |
|---|
| Median (15 companies) | 1.8x | 2.1x | 2.2x | 2.3x | 3.4x |
|---|
