Ifb Agro Industries reports 62.6% Net Income decline and 4.2 pp EBITDA Margin decline from 9.2% to 5.1%
30-05-2015 • About Ifb Agro Industries (
$IFBAGRO) • By InTwits
Ifb Agro Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 5.1% in FY2015 vs. 9.2% in FY2014 vs. 7.8% in FY2011
- Ifb Agro Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 6.0%.
- CAPEX is quite volatile: 260 in FY2015, 479 in FY2014, 81.6 in FY2013, 197 in FY2012, 120 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ifb Agro Industries ($IFBAGRO) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,500 | 4,282 | 4,514 | 4,892 | 5,830 | 19.2% |
| EBITDA | 353 | 492 | 488 | 452 | 296 | -34.5% |
| Net Income | 178 | 265 | 262 | 417 | 156 | -62.6% |
Balance Sheet
|
|---|
| Cash | 65 | 82 | 79 | 476 | 579 | 21.6% |
| Short Term Debt | 21 | 2 | 0 | 42 | 0 | -100.0% |
| Long Term Debt | 24 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 120 | 197 | 82 | 479 | 260 | -45.6% |
Ratios
|
|---|
| Revenue growth | -37.5% | -4.8% | 5.4% | 8.4% | 19.2% | |
| EBITDA growth | 215.6% | 39.4% | -0.8% | -7.4% | -34.5% | |
| EBITDA Margin | 7.8% | 11.5% | 10.8% | 9.2% | 5.1% | -4.2% |
| Net Income Margin | 4.0% | 6.2% | 5.8% | 8.5% | 2.7% | -5.8% |
| CAPEX, % of revenue | 2.7% | 4.6% | 1.8% | 9.8% | 4.5% | -5.3% |
| ROIC | 25.9% | 33.3% | 26.7% | 18.8% | 4.8% | -14.0% |
| ROE | 22.9% | 26.6% | 19.4% | 22.9% | 7.3% | -15.6% |
| Net Debt/EBITDA | -0.1x | -0.2x | -0.2x | -1.0x | -2.0x | -1.0x |
Revenue and profitability
The company's Revenue jumped on 19.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 22.0% to 31.3% in FY2015.
Net Income marign decreased on 5.8 pp from 8.5% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.5% in FY2015. Ifb Agro Industries showed almost no change in CAPEX/Revenue from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 5.4%.Ifb Agro Industries invested a big chunk of EBITDA (87.9%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (4.78%) and ROE (7.28%). ROIC dropped on 14.0 pp from 18.8% to 4.8% in FY2015. ROE dropped on 15.6 pp from 22.9% to 7.3% in FY2015.
Leverage (Debt)
The company paid down all the debt in FY2015. Cash jumped on 21.6% in FY2015.
Appendix 1: Peers in Breweries & Distilleries
Below you can find Ifb Agro Industries benchmarking vs. other companies in Breweries & Distilleries 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 |
|---|
| Khoday India ($KHODAY) | -25.0% | 19.9% | -24.7% | 34.3% | |
| Pioneer Distilleries ($PIONDIST) | | 94.2% | -0.9% | 25.1% | 17.0% |
| Tilaknagar Industries ($TI) | | 17.0% | 34.6% | 9.4% | -22.2% |
| United Breweries ($UBL) | | 16.3% | 9.5% | 8.5% | 10.8% |
| United Spirits ($UNITDSPR) | | 24.5% | 13.3% | 0.9% | -12.8% |
| |
|---|
| Median (7 companies) | -26.6% | 17.0% | 9.5% | 8.5% | 6.5% |
|---|
| Ifb Agro Industries ($IFBAGRO) | | -4.8% | 5.4% | 8.4% | 19.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pioneer Distilleries ($PIONDIST) | -36.1% | -3.0% | -7.5% | 6.6% | 19.5% |
| Tilaknagar Industries ($TI) | 24.6% | 26.2% | 22.7% | 21.0% | 15.0% |
| United Breweries ($UBL) | 12.8% | 11.6% | 12.3% | 10.3% | 13.3% |
| G.M.Breweries ($GMBREW) | 15.5% | 10.0% | 9.1% | 13.7% | 11.5% |
| United Spirits ($UNITDSPR) | 15.5% | 12.2% | 12.6% | -1.3% | 6.1% |
| |
|---|
| Median (6 companies) | 15.0% | 12.2% | 12.3% | 13.7% | 12.4% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 7.8% | 11.5% | 10.8% | 9.2% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tilaknagar Industries ($TI) | 23.7% | 20.6% | 10.0% | 14.8% | 13.7% |
| Pioneer Distilleries ($PIONDIST) | 33.1% | 29.8% | 35.0% | 30.0% | 12.3% |
| United Breweries ($UBL) | 14.4% | 10.7% | 9.8% | 5.0% | 8.7% |
| United Spirits ($UNITDSPR) | 3.7% | 7.4% | 2.8% | 2.2% | 1.8% |
| G.M.Breweries ($GMBREW) | 7.2% | 3.1% | 6.7% | 0.0% | 0.0% |
| |
|---|
| Median (5 companies) | 7.2% | 10.7% | 6.7% | 3.6% | 8.7% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 2.7% | 4.6% | 1.8% | 9.8% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| G.M.Breweries ($GMBREW) | 29.6% | 18.4% | 17.0% | 21.9% | 18.0% |
| Som Distilleries & Breweries ($SDBL) | 25.8% | 23.3% | 22.2% | 19.2% | |
| Tilaknagar Industries ($TI) | 13.3% | 11.6% | 11.7% | 10.7% | 4.6% |
| United Breweries ($UBL) | 12.4% | 11.5% | 11.6% | 8.1% | 14.3% |
| Silver Oak (India) ($SILVOAK) | | | 8.4% | 0.3% | |
| |
|---|
| Median (11 companies) | 10.4% | 11.5% | 8.7% | 8.1% | 14.3% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 25.9% | 33.3% | 26.7% | 18.8% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pioneer Distilleries ($PIONDIST) | | | | 10.4x | 2.1x |
| Tilaknagar Industries ($TI) | 3.6x | 4.3x | 3.8x | 4.8x | 8.4x |
| United Breweries ($UBL) | 1.9x | 2.0x | 2.5x | 2.7x | 1.3x |
| Silver Oak (India) ($SILVOAK) | | 2.7x | 1.1x | 1.2x | |
| G.M.Breweries ($GMBREW) | 0.9x | 0.9x | 0.7x | 0.6x | 0.5x |
| |
|---|
| Median (7 companies) | 3.6x | 2.5x | 2.5x | 1.2x | 2.1x |
|---|
| Ifb Agro Industries ($IFBAGRO) | -0.1x | -0.2x | -0.2x | -1.0x | -2.0x |
