Gokul Refoils & Solvent EBITDA dropped on 42.4% in 2015 and EBITDA Margin decreased slightly on 1.0 pp from 2.8% to 1.7%
30-05-2015 • About Gokul Refoils & Solvent (
$GOKUL) • By InTwits
Gokul Refoils & Solvent reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gokul Refoils & Solvent is a company in decline: FY2015 revenue growth was -8.3%, 5 years revenue CAGR was -3.8%
- EBITDA Margin is quite volatile: 1.7% in FY2015, 2.8% in FY2014, 1.5% in FY2013, 0.5% in FY2012, 4.1% in FY2011
- Gokul Refoils & Solvent has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 6.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.7x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gokul Refoils & Solvent ($GOKUL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 47,594 | 65,005 | 57,378 | 63,634 | 58,333 | -8.3% |
| SG&A | | | | | 374 | |
| EBITDA | 1,941 | 347 | 873 | 1,769 | 1,019 | -42.4% |
| Net Income | 702 | -1,081 | 99 | 36 | 92 | 156.1% |
Balance Sheet
|
|---|
| Cash | 300 | 1,184 | 3,716 | 2,377 | 2,183 | -8.2% |
| Short Term Debt | 4,962 | 16,977 | 11,294 | 6,004 | 5,475 | -8.8% |
| Long Term Debt | 823 | 503 | 231 | 510 | 500 | -2.0% |
Cash flow
|
|---|
| Capex | 434 | 493 | 241 | 272 | 505 | 85.5% |
Ratios
|
|---|
| Revenue growth | -32.9% | 36.6% | -11.7% | 10.9% | -8.3% | |
| EBITDA growth | 66.9% | -82.1% | 151.3% | 102.6% | -42.4% | |
| EBITDA Margin | 4.1% | 0.5% | 1.5% | 2.8% | 1.7% | -1.0% |
| Net Income Margin | 1.5% | -1.7% | 0.2% | 0.1% | 0.2% | 0.1% |
| SG&A, % of revenue | | | | | 0.6% | 0.6% |
| CAPEX, % of revenue | 0.9% | 0.8% | 0.4% | 0.4% | 0.9% | 0.4% |
| ROIC | 15.1% | 0.1% | 2.8% | 10.9% | 6.9% | -4.1% |
| ROE | 16.7% | -26.9% | 2.8% | 1.0% | 2.5% | 1.5% |
| Net Debt/EBITDA | 2.8x | 46.9x | 8.9x | 2.3x | 3.7x | 1.4x |
Revenue and profitability
Gokul Refoils & Solvent's Revenue decreased on 8.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.0 pp from 2.8% to 1.7% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.87%. Gokul Refoils & Solvent showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.57%.
Return on investment
The company operates at low ROIC (6.89%) and ROE (2.46%). ROIC decreased on 4.1 pp from 10.9% to 6.9% in FY2015. ROE increased slightly on 1.5 pp from 0.98% to 2.5% in FY2015.
Leverage (Debt)
Debt level is 3.7x Net Debt / EBITDA and 5.9x Debt / EBITDA. Net Debt / EBITDA jumped on 1.4x from 2.3x to 3.7x in FY2015. Debt decreased on 8.3% in FY2015 while cash decreased on 8.2% in FY2015.
Appendix 1: Peers in Edible Oils
Below you can find Gokul Refoils & Solvent benchmarking vs. other companies in Edible Oils 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 |
|---|
| Natraj Proteins ($NATRAJPR) | | 16.3% | 44.1% | 14.8% | -17.1% |
| Rasoya Proteins ($RASOYPR) | -50.3% | 228.9% | 7.2% | 13.6% | |
| Ruchi Infrastructure ($RUCHINFRA) | 71.8% | 44.0% | -23.4% | 13.4% | |
| Ajanta Soya ($AJANTSOY) | -55.4% | 22.4% | 13.2% | 13.1% | |
| Divya Jyoti Industries ($DIVYAJYQ) | 13.8% | 15.4% | 33.3% | -2.7% | |
| |
|---|
| Median (7 companies) | -18.2% | 22.4% | 13.2% | 13.1% | -33.5% |
|---|
| Gokul Refoils & Solvent ($GOKUL) | | 36.6% | -11.7% | 10.9% | -8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rasoya Proteins ($RASOYPR) | 6.0% | 7.3% | 6.0% | 6.3% | |
| Natraj Proteins ($NATRAJPR) | 2.9% | 4.5% | 6.4% | 4.2% | |
| Divya Jyoti Industries ($DIVYAJYQ) | 2.4% | 3.3% | 2.2% | 2.0% | |
| Ruchi Infrastructure ($RUCHINFRA) | 3.9% | 1.7% | 1.9% | 1.0% | |
| Ajanta Soya ($AJANTSOY) | 0.9% | 1.0% | 0.5% | 0.7% | |
| |
|---|
| Median (5 companies) | 2.4% | 1.9% | 1.9% | 2.0% | |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 4.1% | 0.5% | 1.5% | 2.8% | 1.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rasoya Proteins ($RASOYPR) | 13.9% | 3.7% | 2.2% | 0.2% | |
| Ruchi Infrastructure ($RUCHINFRA) | 0.4% | 0.6% | 0.1% | 0.1% | |
| |
|---|
| Median (2 companies) | 1.8% | 0.6% | 1.2% | 0.1% | |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 0.9% | 0.8% | 0.4% | 0.4% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rasoya Proteins ($RASOYPR) | | 19.0% | 12.5% | 12.6% | |
| Ruchi Infrastructure ($RUCHINFRA) | 9.4% | 4.5% | 3.5% | 1.9% | |
| Raj Oil Mills ($RAJOIL) | | | | | |
| Sam Industries ($SAMINDUS) | 12.7% | 25.4% | 4.9% | | |
| Murli Industries ($MURLIIND) | -3.8% | -12.3% | -8.8% | | |
| |
|---|
| Median (9 companies) | 9.5% | 14.7% | 4.9% | 7.2% | |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 15.1% | 0.1% | 2.8% | 10.9% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 3.3x | 3.1x | 7.7x | 13.3x | |
| Rasoya Proteins ($RASOYPR) | 5.9x | 1.9x | 2.7x | 2.4x | |
| Divya Jyoti Industries ($DIVYAJYQ) | 8.5x | 0.0x | 2.9x | 0.0x | |
| Ajanta Soya ($AJANTSOY) | 4.6x | 8.5x | 12.7x | 0.0x | |
| Natraj Proteins ($NATRAJPR) | 6.2x | 5.1x | 1.2x | 0.0x | |
| |
|---|
| Median (5 companies) | 5.2x | 1.9x | 2.7x | 0.0x | |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 2.8x | 46.9x | 8.9x | 2.3x | 3.7x |
