Mandhana Industries Debt decreased on 6.4% in 2015 and Net Debt / EBITDA decreased on 0.1x from 3.9x to 3.8x
29-05-2015 • About Mandhana Industries (
$MANDHANA) • By InTwits
Mandhana Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 14.7% in FY2015, 15.8% in FY2014, 14.5% in FY2013, 19.1% in FY2012, 57.4% in FY2011
- Mandhana Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 432 in FY2015, 389 in FY2014, 529 in FY2013, 1,018 in FY2012, 1,615 in FY2011
- The company has highly profitable business model: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mandhana Industries ($MANDHANA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,766 | 9,801 | 13,631 | 15,179 | 15,429 | 1.6% |
| EBITDA | 9,617 | 1,870 | 1,976 | 2,404 | 2,271 | -5.5% |
| Net Income | 8,481 | 731 | 653 | 592 | 627 | 5.9% |
Balance Sheet
|
|---|
| Cash | 41 | 6 | 145 | 39 | 116 | 197.3% |
| Short Term Debt | 2,263 | 3,751 | 4,669 | 5,501 | 6,214 | 13.0% |
| Long Term Debt | 8,894 | 3,264 | 3,914 | 3,840 | 2,528 | -34.2% |
Cash flow
|
|---|
| Capex | 1,615 | 1,018 | 529 | 389 | 432 | 10.8% |
Ratios
|
|---|
| Revenue growth | -8.3% | -41.5% | 39.1% | 11.4% | 1.6% | |
| EBITDA growth | 649.5% | -80.6% | 5.7% | 21.7% | -5.5% | |
| EBITDA Margin | 57.4% | 19.1% | 14.5% | 15.8% | 14.7% | -1.1% |
| Net Income Margin | 50.6% | 7.5% | 4.8% | 3.9% | 4.1% | 0.2% |
| CAPEX, % of revenue | 9.6% | 10.4% | 3.9% | 2.6% | 2.8% | 0.2% |
| ROIC | 86.1% | 12.1% | 13.2% | 14.2% | 12.0% | -2.2% |
| ROE | 311.0% | 19.0% | 14.7% | 11.9% | 11.6% | -0.3% |
| Net Debt/EBITDA | 1.2x | 3.7x | 4.3x | 3.9x | 3.8x | -0.1x |
Revenue and profitability
Mandhana Industries's Revenue increased slightly on 1.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 15.8% to 14.7% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in FY2015. The company's CAPEX/Revenue decreased on 7.6 pp from 10.4% in FY2012 to 2.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at good ROIC (12.03%) while ROE is low (11.64%). ROIC decreased on 2.2 pp from 14.2% to 12.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 3.9x to 3.8x in FY2015. Debt decreased on 6.4% in FY2015 while cash surged on 197% in FY2015.
Valuation
The company's trades at EV/EBITDA 5.2x and P/E 5.1x while industy averages are 10.5x and 26.1x. Mandhana Industries's EV/(EBITDA-CAPEX) is 6.4x with the industry average at 4.7x.
Management team
Mandhana Industries's CEO Purushottam C Mandhana has spent 8 years at the company.
Appendix 1: Peers in Textiles
Below we provide Mandhana 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 ($GTNTEX) | | -8.8% | 51.2% | 39.4% | -36.3% |
| |
|---|
| Median (73 companies) | -27.8% | 5.0% | 9.3% | 14.4% | -0.3% |
|---|
| Mandhana Industries ($MANDHANA) | | -41.5% | 39.1% | 11.4% | 1.6% |
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 ($PREMSYN) | | | | | 25.9% |
| |
|---|
| Median (67 companies) | 12.7% | 6.3% | 9.5% | 9.5% | 8.2% |
|---|
| Mandhana Industries ($MANDHANA) | 57.4% | 19.1% | 14.5% | 15.8% | 14.7% |
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 ($SUTLEJTEX) | 2.3% | 3.4% | 1.8% | 5.6% | 10.7% |
| |
|---|
| Median (17 companies) | 4.5% | 3.0% | 5.9% | 7.4% | 6.8% |
|---|
| Mandhana Industries ($MANDHANA) | 9.6% | 10.4% | 3.9% | 2.6% | 2.8% |
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 ($RSWM) | 17.4% | 2.2% | 15.2% | 15.5% | 11.8% |
| |
|---|
| Median (126 companies) | 10.1% | 3.5% | 9.0% | 8.9% | 8.5% |
|---|
| Mandhana Industries ($MANDHANA) | 86.1% | 12.1% | 13.2% | 14.2% | 12.0% |
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 ($BINNY) | | | 12.0x | 0.0x | 4.0x |
| |
|---|
| Median (56 companies) | 3.9x | 3.8x | 3.2x | 0.0x | 0.0x |
|---|
| Mandhana Industries ($MANDHANA) | 1.2x | 3.7x | 4.3x | 3.9x | 3.8x |
