Ganesha Ecosphere revenue growth accelerated from 14.7% in FY2014 to 24.7% in FY2015
30-05-2015 • About Ganesha Ecosphere (
$GANECOS) • By InTwits
Ganesha Ecosphere reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 10.1% in FY2015 vs. 11.0% in FY2014 vs. 12.0% in FY2011
- Ganesha Ecosphere has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 2.8%.
- CAPEX is quite volatile: 283 in FY2015, 769 in FY2014, 1,020 in FY2013, 265 in FY2012, 319 in FY2011
- The company has highly profitable business model: ROIC is at 12.3%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ganesha Ecosphere ($GANECOS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,915 | 3,855 | 4,350 | 4,988 | 6,219 | 24.7% |
| EBITDA | 351 | 417 | 483 | 548 | 630 | 15.1% |
| Net Income | 180 | 207 | 241 | 245 | 231 | -6.0% |
Balance Sheet
|
|---|
| Cash | 74 | 68 | 22 | 80 | 37 | -53.4% |
| Short Term Debt | 411 | 565 | 701 | 986 | 1,071 | 8.7% |
| Long Term Debt | 384 | 360 | 1,068 | 1,251 | 869 | -30.6% |
Cash flow
|
|---|
| Capex | 319 | 265 | 1,020 | 769 | 283 | -63.2% |
Ratios
|
|---|
| Revenue growth | -60.9% | 32.3% | 12.9% | 14.7% | 24.7% | |
| EBITDA growth | 47.6% | 18.7% | 15.8% | 13.4% | 15.1% | |
| EBITDA Margin | 12.0% | 10.8% | 11.1% | 11.0% | 10.1% | -0.8% |
| Net Income Margin | 6.2% | 5.4% | 5.5% | 4.9% | 3.7% | -1.2% |
| CAPEX, % of revenue | 11.0% | 6.9% | 23.4% | 15.4% | 4.6% | -10.9% |
| ROIC | 20.8% | 18.6% | 15.8% | 13.2% | 12.3% | -0.9% |
| ROE | 37.1% | 29.6% | 26.1% | 21.7% | 15.6% | -6.1% |
| Net Debt/EBITDA | 2.1x | 2.1x | 3.6x | 3.9x | 3.0x | -0.9x |
Revenue and profitability
The company's Revenue jumped on 24.7% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.84 pp from 11.0% to 10.1% in FY2015.
Net Income marign decreased slightly on 1.2 pp from 4.9% to 3.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.6% in FY2015. The company showed decline in CAPEX/Revenue of 2.3 pp from 6.9% in FY2012 to 4.6% in FY2015. For the last three years the average CAPEX/Revenue was 14.5%.
Return on investment
The company operates at good ROIC (12.30%) and ROE (15.63%). ROIC decreased slightly on 0.89 pp from 13.2% to 12.3% in FY2015. ROE decreased on 6.1 pp from 21.7% to 15.6% in FY2015.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 3.9x to 3.0x in FY2015. Debt dropped on 13.3% in FY2015 while cash dropped on 53.4% in FY2015.
Appendix 1: Peers in Misc.Commercial Services
Below we provide Ganesha Ecosphere benchmarking against other companies in Misc.Commercial Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Crest Ventures Limited ($CREST) | | -39.7% | 9.2% | -0.8% | 55.0% |
| Trinity Tradelink Limited ($TRITRADE) | | | | 408,047.0% | 28.3% |
| Centum Electronics ($CENTUM) | | 1.4% | 9.8% | 50.4% | 14.8% |
| Delta Corp ($DELTACORP) | | -2.9% | 16.6% | 31.3% | -46.3% |
| |
|---|
| Median (4 companies) | | -2.9% | 9.8% | 40.9% | 21.5% |
|---|
| Ganesha Ecosphere ($GANECOS) | | 32.3% | 12.9% | 14.7% | 24.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Delta Corp ($DELTACORP) | 49.3% | 27.7% | 23.7% | 27.0% | 22.9% |
| Centum Electronics ($CENTUM) | 11.9% | 12.8% | 16.6% | 20.6% | 20.3% |
| Greencrest Financial Services ($GREENCREST) | | | | | 14.0% |
| Crest Ventures Limited ($CREST) | -1.2% | 4.9% | 13.4% | 21.8% | 4.2% |
| Sawaca Business Machines ($SAWABUSI) | | | | | 3.9% |
| |
|---|
| Median (7 companies) | 5.3% | 12.8% | 16.6% | 21.2% | 4.2% |
|---|
| Ganesha Ecosphere ($GANECOS) | 12.0% | 10.8% | 11.1% | 11.0% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Delta Corp ($DELTACORP) | 32.0% | 95.5% | 74.3% | 14.0% | 5.2% |
| Centum Electronics ($CENTUM) | 5.0% | 5.5% | 2.4% | 6.7% | 3.9% |
| Greencrest Financial Services ($GREENCREST) | | | | | 0.0% |
| Lifeline Drugs & Pharma ($LIFELINE) | | | | | 0.0% |
| |
|---|
| Median (4 companies) | 4.7% | 5.5% | 3.2% | 5.6% | 2.0% |
|---|
| Ganesha Ecosphere ($GANECOS) | 11.0% | 6.9% | 23.4% | 15.4% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Centum Electronics ($CENTUM) | 10.9% | 10.6% | 16.9% | 35.8% | 32.8% |
| Trinity Tradelink Limited ($TRITRADE) | -52.6% | -138.6% | -242.1% | 5.1% | 12.3% |
| Greencrest Financial Services ($GREENCREST) | | | 1.8% | 2.2% | 3.1% |
| Delta Corp ($DELTACORP) | 24.3% | 8.5% | 6.7% | 10.1% | 2.9% |
| Lifeline Drugs & Pharma ($LIFELINE) | | 3.3% | 2.8% | 1.2% | -3.3% |
| |
|---|
| Median (9 companies) | 11.4% | 4.9% | 4.8% | 5.1% | 3.1% |
|---|
| Ganesha Ecosphere ($GANECOS) | 20.8% | 18.6% | 15.8% | 13.2% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Delta Corp ($DELTACORP) | 0.8x | 3.2x | 4.4x | 2.1x | 4.6x |
| Trinity Tradelink Limited ($TRITRADE) | | | | -2.9x | 1.0x |
| Centum Electronics ($CENTUM) | 2.0x | 1.9x | 1.2x | 0.5x | 0.4x |
| Sawaca Business Machines ($SAWABUSI) | -2.3x | | | -1.0x | 0.0x |
| Crest Ventures Limited ($CREST) | | -1.8x | 0.2x | 2.8x | 0.0x |
| |
|---|
| Median (6 companies) | 1.8x | 1.6x | 0.9x | -0.3x | 0.2x |
|---|
| Ganesha Ecosphere ($GANECOS) | 2.1x | 2.1x | 3.6x | 3.9x | 3.0x |
