Anil reports 160% CAPEX growth and 17.5% Revenue growth
30-05-2015 • About Anil (
$ANILLTD) • By InTwits
Anil reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 17.4% in FY2015 vs. 17.1% in FY2014 vs. 17.4% in FY2011
- The company has highly profitable business model: ROIC is at 16.2%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anil ($ANILLTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,041 | 6,447 | 7,060 | 8,249 | 9,691 | 17.5% |
| EBITDA | 879 | 1,166 | 1,194 | 1,414 | 1,691 | 19.6% |
| Net Income | 401 | 504 | 458 | 483 | 553 | 14.5% |
Balance Sheet
|
|---|
| Cash | 45 | 88 | 125 | 60 | 27 | -54.9% |
| Short Term Debt | 1,109 | 1,527 | 2,915 | 3,299 | 3,103 | -5.9% |
| Long Term Debt | 1,322 | 1,128 | 1,237 | 2,087 | 3,667 | 75.7% |
Cash flow
|
|---|
| Capex | | | 470 | 430 | 1,117 | 159.8% |
Ratios
|
|---|
| Revenue growth | -54.6% | 27.9% | 9.5% | 16.8% | 17.5% | |
| EBITDA growth | | 32.7% | 2.3% | 18.4% | 19.6% | |
| EBITDA Margin | 17.4% | 18.1% | 16.9% | 17.1% | 17.4% | 0.3% |
| Net Income Margin | 8.0% | 7.8% | 6.5% | 5.8% | 5.7% | -0.1% |
| CAPEX, % of revenue | | | 6.7% | 5.2% | 11.5% | 6.3% |
| ROIC | | 23.6% | 17.9% | 16.4% | 16.2% | -0.2% |
| ROE | | 32.6% | 21.7% | 18.9% | 18.4% | -0.5% |
| Net Debt/EBITDA | 2.7x | 2.2x | 3.4x | 3.8x | 4.0x | 0.2x |
Revenue and profitability
Anil's Revenue jumped on 17.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 1.4% to 4.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 11.5% in FY2015. The company's CAPEX/Revenue surged11.5 pp from in FY2012 to 11.5% in FY2015. For the last three years the average CAPEX/Revenue was 7.8%.To deliver this fast growth the company invested a large share of EBITDA (66.1%) to CAPEX.
Return on investment
The company operates at good ROIC (16.21%) and ROE (18.41%). ROIC showed almost no change in FY2015. ROE decreased slightly on 0.54 pp from 18.9% to 18.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.0x. Net Debt / EBITDA surged on 0.2x from 3.8x to 4.0x in FY2015. Debt jumped on 25.7% in FY2015 while cash dropped on 54.9% in FY2015.
Appendix 1: Peers in Specialty Chemicals
Below you can find Anil benchmarking vs. other companies in Specialty Chemicals 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 |
|---|
| Kiri Industries ($KIRIINDUS) | | 7.9% | -86.5% | 24.8% | 34.7% |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | | 14.1% | 4.7% | 19.5% | 30.0% |
| Keltech Energies ($KELENRG) | | 60.2% | -13.4% | -0.4% | 24.4% |
| Dai-Ichi Karkaria ($DAICHI) | | 20.7% | 31.4% | 45.4% | 22.8% |
| Nitta Gelatin India ($NITTAGELA) | | 21.2% | 27.8% | -5.5% | 21.2% |
| |
|---|
| Median (25 companies) | -46.2% | 19.8% | 14.1% | 11.3% | 10.9% |
|---|
| Anil ($ANILLTD) | | 27.9% | 9.5% | 16.8% | 17.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.7% | 21.8% | 22.7% | 24.9% |
| Indian Toners & Developers ($INDTONER) | | | | | 22.6% |
| Solar Industries India ($SOLARINDS) | 18.1% | 18.5% | 17.5% | 17.9% | 19.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.1% | 18.0% | 15.5% | 17.4% | 17.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 9.1% | 12.8% | 12.8% | 16.7% |
| |
|---|
| Median (29 companies) | 11.2% | 10.6% | 11.2% | 10.6% | 10.9% |
|---|
| Anil ($ANILLTD) | 17.4% | 18.1% | 16.9% | 17.1% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Adi Finechem ($ADIFINCHM) | 8.2% | 7.3% | 4.8% | 12.6% | 16.9% |
| Solar Industries India ($SOLARINDS) | 14.2% | 13.0% | 9.9% | 12.3% | 10.3% |
| Pidilite Industries ($PIDILITIND) | 4.8% | 5.2% | 2.9% | 4.4% | 8.5% |
| Oricon Enterprises ($ORICON) | 8.6% | 10.2% | 6.2% | 4.7% | 7.9% |
| Vinati Organics ($VINATIORGA) | 11.1% | 13.6% | 28.2% | 4.2% | 7.4% |
| |
|---|
| Median (16 companies) | 7.2% | 5.1% | 4.5% | 4.3% | 4.9% |
|---|
| Anil ($ANILLTD) | | | 6.7% | 5.2% | 11.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinati Organics ($VINATIORGA) | 31.4% | 29.6% | 26.2% | 30.6% | 34.8% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.9% | 11.1% | 17.8% | 24.2% | 29.5% |
| Pidilite Industries ($PIDILITIND) | 29.3% | 27.4% | 29.3% | 29.8% | 29.0% |
| Adi Finechem ($ADIFINCHM) | 27.6% | 30.6% | 29.8% | 46.4% | 26.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 22.8% | 20.0% | 16.3% | 20.8% | 25.7% |
| |
|---|
| Median (32 companies) | 15.2% | 14.7% | 14.8% | 11.2% | 17.8% |
|---|
| Anil ($ANILLTD) | | 23.6% | 17.9% | 16.4% | 16.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kiri Industries ($KIRIINDUS) | 3.9x | 8.2x | 31.3x | 10.6x | 7.7x |
| Jayant Agro-Organics ($JAYAGROGN) | 3.9x | 2.8x | 3.1x | 4.6x | 6.5x |
| Oricon Enterprises ($ORICON) | 1.3x | 1.2x | 1.0x | 1.7x | 3.2x |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.2x | 2.4x | 5.1x | 3.2x | 3.2x |
| Meghmani Organics ($MEGH) | 4.8x | 4.2x | 3.7x | 4.3x | 3.1x |
| |
|---|
| Median (28 companies) | 1.3x | 1.4x | 1.5x | 1.7x | 0.0x |
|---|
| Anil ($ANILLTD) | 2.7x | 2.2x | 3.4x | 3.8x | 4.0x |
