Kic Metaliks reports 25.9% EBITDA decline and 10.2% Revenue decline
30-05-2015 • About Kic Metaliks (
$KAJARIR) • By InTwits
Kic Metaliks reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kic Metaliks is a company in decline: FY2015 revenue growth was -10.2%, 5 years revenue CAGR was -3.5%
- EBITDA Margin is quite volatile: 0.7% in FY2015, 0.9% in FY2014, 5.1% in FY2013, 3.2% in FY2012, 9.9% in FY2011
- The company has unprofitable business model: ROIC is at -3.6%
- It operates with high leverage: Net Debt/EBITDA is 19.8x while industry average is 14.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kic Metaliks ($KAJARIR) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,615 | 3,425 | 4,808 | 4,744 | 4,260 | -10.2% |
| EBITDA | 260 | 108 | 246 | 40 | 30 | -25.9% |
| Net Income | 152 | 33 | 22 | -43 | 18 | |
Balance Sheet
|
|---|
| Cash | 4 | 1 | 2 | 58 | 45 | -23.4% |
| Short Term Debt | 1,403 | 453 | 315 | 179 | 162 | -9.8% |
| Long Term Debt | 311 | 544 | 433 | 616 | 475 | -22.9% |
Cash flow
|
|---|
| Capex | 655 | 201 | 57 | | | |
Ratios
|
|---|
| Revenue growth | -48.8% | 31.0% | 40.4% | -1.3% | -10.2% | |
| EBITDA growth | 60.3% | -58.2% | 126.3% | -83.5% | -25.9% | |
| EBITDA Margin | 9.9% | 3.2% | 5.1% | 0.9% | 0.7% | -0.1% |
| Net Income Margin | 5.8% | 1.0% | 0.5% | -0.9% | 0.4% | 1.3% |
| CAPEX, % of revenue | 25.1% | 5.9% | 1.2% | | | 0.0% |
| ROIC | 11.5% | 3.2% | 8.4% | -3.2% | -3.6% | -0.3% |
| ROE | 46.4% | 7.1% | 4.7% | -6.4% | 2.0% | 8.4% |
| Net Debt/EBITDA | 6.6x | 9.2x | 3.0x | 18.2x | 19.8x | 1.5x |
Revenue and profitability
Kic Metaliks's Revenue dropped on 10.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.2 pp from 11.7% to 7.5% in FY2015.
Net Income marign increased slightly on 1.3 pp from -0.92% to 0.42% in FY2015.
Return on investment
The company operates at negative ROIC (-3.56%) and low but positive ROE (1.99%). ROIC showed almost no change in FY2015. ROE increased on 8.4 pp from -6.4% to 2.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 19.8x and Debt / EBITDA is 21.3x. Net Debt / EBITDA surged on 1.5x from 18.2x to 19.8x in FY2015. Debt dropped on 19.9% in FY2015 while cash dropped on 23.4% in FY2015.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below you can find Kic Metaliks 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 ($SALSTEEL) | | 2.3% | 15.8% | -13.2% | 10.9% |
| |
|---|
| Median (26 companies) | -24.2% | 11.9% | 3.2% | 3.4% | 1.9% |
|---|
| Kic Metaliks ($KAJARIR) | | 31.0% | 40.4% | -1.3% | -10.2% |
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 ($TATAMETALI) | 3.2% | -9.6% | 0.9% | 6.8% | 14.6% |
| |
|---|
| Median (25 companies) | 13.4% | 9.5% | 9.2% | 7.4% | 9.1% |
|---|
| Kic Metaliks ($KAJARIR) | 9.9% | 3.2% | 5.1% | 0.9% | 0.7% |
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 ($JSWSTEEL) | 22.0% | 11.9% | 14.7% | 11.3% | 12.7% |
| |
|---|
| Median (17 companies) | 11.9% | 9.7% | 11.6% | 7.1% | 5.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($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) | 9.4% | 7.2% | 5.5% | 6.0% | 5.4% |
|---|
| Kic Metaliks ($KAJARIR) | 11.5% | 3.2% | 8.4% | -3.2% | -3.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Visa Steel ($VISASTEEL) | 6.9x | 20.1x | | 24.4x | 187.1x |
| Ismt ($ISMTLTD) | 4.4x | 5.3x | 9.8x | 19.9x | 48.3x |
| Bhushan Steel ($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 | 4.4x | 3.2x | 2.2x |
|---|
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | 19.8x |
