Bodal Chemicals reports 204% Net Income growth while 2.4 pp EBITDA Margin decline from 20.4% to 18.0%
30-05-2015 • About Bodal Chemicals (
$BODALCHEM) • By InTwits
Bodal Chemicals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.0% in FY2015, 20.4% in FY2014, 5.6% in FY2013, 1.8% in FY2012, 10.6% in FY2011
- Bodal Chemicals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 7.4%.
- CAPEX is quite volatile: 355 in FY2015, 182 in FY2014, 38.1 in FY2013, 229 in FY2012, 990 in FY2011
- The company has highly profitable business model: ROIC is at 38.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bodal Chemicals ($BODALCHEM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,727 | 6,034 | 5,275 | 9,496 | 10,453 | 10.1% |
| EBITDA | 607 | 111 | 296 | 1,934 | 1,879 | -2.9% |
| Net Income | 168 | -298 | -232 | 302 | 918 | 204.3% |
Balance Sheet
|
|---|
| Cash | 8 | 17 | 4 | 10 | 12 | 23.7% |
| Short Term Debt | 1,577 | 2,105 | 1,022 | 1,558 | 1,225 | -21.4% |
| Long Term Debt | 1,326 | 1,341 | 2,457 | 2,158 | 862 | -60.1% |
Cash flow
|
|---|
| Capex | 990 | 229 | 38 | 182 | 355 | 94.8% |
Ratios
|
|---|
| Revenue growth | -51.3% | 5.4% | -12.6% | 80.0% | 10.1% | |
| EBITDA growth | | -81.7% | 166.5% | 554.1% | -2.9% | |
| EBITDA Margin | 10.6% | 1.8% | 5.6% | 20.4% | 18.0% | -2.4% |
| Net Income Margin | 2.9% | -4.9% | -4.4% | 3.2% | 8.8% | 5.6% |
| CAPEX, % of revenue | 17.3% | 3.8% | 0.7% | 1.9% | 3.4% | 1.5% |
| ROIC | | -1.3% | 3.3% | 39.0% | 38.3% | -0.7% |
| ROE | | -43.5% | -50.0% | 60.6% | 82.9% | 22.3% |
| Net Debt/EBITDA | 4.8x | 30.9x | 11.8x | 1.9x | 1.1x | -0.8x |
Revenue and profitability
Bodal Chemicals's Revenue jumped on 10.1% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 20.4% to 18.0% in FY2015.
Net Income marign increased on 5.6 pp from 3.2% to 8.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 3.4%. Bodal Chemicals's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at high and attractive ROIC (38.34%) and ROE (82.94%). ROIC decreased slightly on 0.70 pp from 39.0% to 38.3% in FY2015. ROE jumped on 22.3 pp from 60.6% to 82.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.8x from 1.9x to 1.1x in FY2015. Debt dropped on 43.8% in FY2015 while cash surged on 23.7% in FY2015.
Management team
The company's CEO Suresh J Patel has spent 12 years at the company. The company's CFO is Mayur Bachubhai Padhya. Mayur Bachubhai Padhya has 5 years tenure at the company.
Appendix 1: Peers in Commodity Chemicals
Below you can find Bodal Chemicals benchmarking vs. other companies in Commodity 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | | 354.1% | -27.9% | -83.3% | 408.0% |
| Jayshree Chemicals ($JAYCH) | | 288.9% | 17.5% | -75.2% | 262.3% |
| Shree Hari Chemicals Export ($SHHARICH) | | -2.5% | -78.0% | 299.5% | 111.6% |
| Southern Online Bio Technologies ($SBTL) | | 50.0% | 56.8% | 40.8% | 22.6% |
| Gayatri Bioorganics ($GAYATRIBI) | | 48.9% | 17.4% | 41.4% | 19.6% |
| |
|---|
| Median (31 companies) | -36.2% | 19.0% | 11.4% | 10.6% | 6.3% |
|---|
| Bodal Chemicals ($BODALCHEM) | | 5.4% | -12.6% | 80.0% | 10.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | | | | | 104.7% |
| Mysore Petro Chemicals ($MYSORPETRO) | | | | | 47.1% |
| Aditya Birla Chemicals (India) ($ABCIL) | 33.6% | 26.8% | 27.1% | 23.6% | 21.9% |
| Chemfab Alkalis ($CHEMFALKAL) | 19.0% | 22.3% | 32.9% | 24.2% | 19.8% |
| Ganesh Benzoplast ($GANESHBE) | 31.7% | 34.1% | 35.9% | | 18.9% |
| |
|---|
| Median (43 companies) | 13.3% | 11.6% | 8.4% | 8.5% | 6.6% |
|---|
| Bodal Chemicals ($BODALCHEM) | 10.6% | 1.8% | 5.6% | 20.4% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | 40.3% |
| Aditya Birla Chemicals (India) ($ABCIL) | 5.9% | 136.9% | 24.2% | 30.8% | 15.0% |
| Aarti Industries ($AARTIIND) | 4.8% | 8.0% | 11.2% | 11.0% | 10.4% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 8.0% | 5.1% | 6.6% | 5.9% | 8.6% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 9.2% | 15.7% | 9.4% | 5.4% | 5.4% |
| |
|---|
| Median (18 companies) | 5.6% | 5.3% | 7.2% | 5.9% | 3.2% |
|---|
| Bodal Chemicals ($BODALCHEM) | 17.3% | 3.8% | 0.7% | 1.9% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Alkyl Amines Chemicals ($ALKYLAMINE) | 10.3% | 16.0% | 18.7% | 25.0% | 23.7% |
| Aarti Industries ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| Transpek Industry ($TRANSPEK) | 15.7% | -1.7% | 14.2% | 11.0% | 17.8% |
| Balaji Amines ($BALAMINES) | 20.3% | 19.3% | 16.1% | 15.6% | 16.5% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 25.5% | 14.0% | 13.6% | 10.4% | 13.5% |
| |
|---|
| Median (48 companies) | 10.6% | 9.2% | 9.8% | 8.9% | 7.5% |
|---|
| Bodal Chemicals ($BODALCHEM) | | -1.3% | 3.3% | 39.0% | 38.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| India Glycols ($INDIAGLYCO) | 8.2x | 4.8x | 3.7x | 8.5x | 14.2x |
| Godrej Industries ($GODREJIND) | 6.8x | 9.9x | 5.7x | 7.9x | 10.7x |
| Polyplex Corporation ($POLYPLEX) | 0.6x | 0.9x | 6.8x | 7.1x | |
| Link Pharma Chem ($LINKPH) | 71.1x | 3.4x | 4.1x | 6.2x | |
| Refnol Resins & Chemicals ($REFNOL) | | | 4.1x | 5.6x | 0.0x |
| |
|---|
| Median (41 companies) | 2.4x | 2.6x | 3.0x | 0.8x | 1.1x |
|---|
| Bodal Chemicals ($BODALCHEM) | 4.8x | 30.9x | 11.8x | 1.9x | 1.1x |
