Ismt Net Debt / EBITDA jumped on 28.4x from 19.9x to 48.3x in 2015 while Debt decreased on 7.3%
30-05-2015 • About Ismt (
$ISMTLTD) • By InTwits
Ismt reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ismt is a company in decline: FY2015 revenue growth was -7.2%, 5 years revenue CAGR was -3.6%
- EBITDA Margin is declining: 1.9% in FY2015 vs. 4.7% in FY2014 vs. 14.6% in FY2011
- EBITDA Margin is quite volatile: 1.9% in FY2015, 4.7% in FY2014, 9.0% in FY2013, 11.5% in FY2012, 14.6% in FY2011
- The company has unprofitable business model: ROIC is at -2.9%
- It operates with high leverage: Net Debt/EBITDA is 48.3x while industry average is 14.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ismt ($ISMTLTD) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16,935 | 19,682 | 15,382 | 15,957 | 14,815 | -7.2% |
| EBITDA | 2,479 | 2,256 | 1,389 | 754 | 284 | -62.4% |
| Net Income | 781 | 252 | -1,241 | -1,942 | -1,881 | |
Balance Sheet
|
|---|
| Cash | 220 | 438 | 92 | 1,068 | 1,210 | 13.2% |
| Short Term Debt | 3,831 | 3,669 | 6,362 | 8,499 | 4,831 | -43.2% |
| Long Term Debt | 7,227 | 8,818 | 7,392 | 7,597 | 10,089 | 32.8% |
Cash flow
|
|---|
| Capex | 2,076 | 2,095 | 891 | 345 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -4.7% | 16.2% | -21.8% | 3.7% | -7.2% | |
| EBITDA growth | 43.6% | -9.0% | -38.5% | -45.7% | -62.4% | |
| EBITDA Margin | 14.6% | 11.5% | 9.0% | 4.7% | 1.9% | -2.8% |
| Net Income Margin | 4.6% | 1.3% | -8.1% | -12.2% | -12.7% | -0.5% |
| CAPEX, % of revenue | 12.3% | 10.6% | 5.8% | 2.2% | | -2.2% |
| ROIC | 8.5% | 7.4% | 2.0% | -1.8% | -2.9% | -1.0% |
| ROE | 13.4% | 4.4% | -25.1% | -59.9% | -81.6% | -21.7% |
| Net Debt/EBITDA | 4.4x | 5.3x | 9.8x | 19.9x | 48.3x | 28.4x |
Revenue and profitability
The company's Revenue decreased on 7.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 2.4% to 5.0% in FY2015.
Net Income marign decreased slightly on 0.53 pp from -12.2% to -12.7% in FY2015.
Return on investment
The company operates at negative ROIC (-2.85%) and ROE (-81.60%). ROIC decreased slightly on 1.0 pp from -1.8% to -2.9% in FY2015. ROE dropped on 21.7 pp from -59.9% to -81.6% in FY2015.
Leverage (Debt)
Debt level is 48.3x Net Debt / EBITDA and 52.6x Debt / EBITDA. Net Debt / EBITDA jumped on 28.4x from 19.9x to 48.3x in FY2015. Debt decreased on 7.3% in FY2015 while cash surged on 13.2% in FY2015.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below you can find Ismt benchmarking vs. other companies in Iron & Steel/Interm.Products 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 |
|---|
| Uttam Galva Steels ($UTTAMSTL) | | 12.0% | 11.0% | -13.2% | 55.0% |
| Modern Steels ($MDRNSTL) | | -2.6% | -22.7% | 0.7% | 20.3% |
| Maithan Alloys ($MAITHANALL) | | -1.5% | 59.1% | 1.1% | 15.0% |
| Pennar Industries ($PENIND) | | 0.9% | -8.5% | 0.5% | 12.7% |
| S.A.L.Steel ($SALSTEEL) | | 2.3% | 15.8% | -13.2% | 10.9% |
| |
|---|
| Median (26 companies) | -24.2% | 11.9% | 8.8% | 2.8% | 1.9% |
|---|
| Ismt ($ISMTLTD) | | 16.2% | -21.8% | 3.7% | -7.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 48.3% | 37.5% | 30.5% | 28.1% | 29.8% |
| Sarda Energy & Minerals ($SARDAEN) | 15.2% | 16.3% | 21.5% | 21.3% | 21.5% |
| Bhushan Steel ($BHUSANSTL) | 29.0% | 31.2% | 32.3% | 28.1% | 20.4% |
| Jsw Steel ($JSWSTEEL) | 20.2% | 17.8% | 17.1% | 17.9% | 17.7% |
| Tata Metaliks ($TATAMETALI) | 3.2% | -9.6% | 0.9% | 6.8% | 14.6% |
| |
|---|
| Median (25 companies) | 13.0% | 9.4% | 9.2% | 7.4% | 9.1% |
|---|
| Ismt ($ISMTLTD) | 14.6% | 11.5% | 9.0% | 4.7% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 64.7% | 34.2% | 47.6% | 69.6% | 26.4% |
| Jayaswal Neco Industries ($JAYNECOIND) | 27.9% | 20.4% | 44.0% | 31.1% | 17.3% |
| Steel Authority Of India ($SAIL) | 25.3% | 20.9% | 20.7% | 19.3% | 16.9% |
| Bhushan Steel ($BHUSANSTL) | 81.1% | 47.2% | 44.0% | 50.4% | 16.2% |
| Jsw Steel ($JSWSTEEL) | 22.0% | 11.9% | 14.7% | 11.3% | 12.7% |
| |
|---|
| Median (17 companies) | 11.9% | 7.5% | 11.6% | 7.7% | 5.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($TATAMETALI) | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% |
| Nova Iron & Steel ($NOVIS) | | | | 15.4% | |
| Kirloskar Ferrous Industries ($KIRLFER) | 20.0% | 19.1% | 16.8% | 12.4% | 14.7% |
| Pennar Industries ($PENIND) | 31.6% | 26.8% | 18.4% | 12.3% | 15.7% |
| Jsw Steel ($JSWSTEEL) | 9.7% | 11.0% | 10.3% | 12.1% | 9.9% |
| |
|---|
| Median (40 companies) | 9.6% | 6.8% | 5.7% | 6.0% | 5.4% |
|---|
| Ismt ($ISMTLTD) | 8.5% | 7.4% | 2.0% | -1.8% | -2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Visa Steel ($VISASTEEL) | 6.9x | 20.1x | | 24.4x | 187.1x |
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | 19.8x |
| Bhushan Steel ($BHUSANSTL) | 8.1x | 6.3x | 8.6x | 12.9x | 17.7x |
| Prakash Industries ($PRAKASH) | 1.8x | 2.5x | 2.8x | 2.5x | 11.9x |
| Jayaswal Neco Industries ($JAYNECOIND) | 3.4x | 4.7x | 7.2x | 8.6x | 11.2x |
| |
|---|
| Median (24 companies) | 3.6x | 4.2x | 4.3x | 3.2x | 2.2x |
|---|
| Ismt ($ISMTLTD) | 4.4x | 5.3x | 9.8x | 19.9x | 48.3x |
