Murli Industries revenue decline decelerated to 53.3% in FY2015 vs. 63.9% a year earliner

30-05-2015 • About Murli Industries ($MURLIIND) • By InTwits

Murli Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Murli Industries is a company in decline: FY2015 revenue growth was -53.3%, 5 years revenue CAGR was -2.3%
EBITDA Margin is relatively stable: in FY2015 vs. in FY2014 vs. 1.0% in FY2011
Murli Industries spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -4.8%0
It operates with high leverage: Net Debt/EBITDA is 5.7x 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.

Murli Industries ($MURLIIND) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	7,363	10,904	6,831	2,468	1,152	-53.3%
EBITDA	74	-1,020	-432
Net Income	-1,970	-1,606	-2,527	-2,283	-2,242
Balance Sheet
Cash	36	5	50
Short Term Debt	1,786	1,177	1,198
Long Term Debt	11,133	12,640	13,716
Cash flow
Capex	237	67
Ratios
Revenue growth	470.0%	48.1%	-37.4%	-63.9%	-53.3%
EBITDA growth	-94.3%	-1,472.6%	-57.6%
EBITDA Margin	1.0%	-9.4%	-6.3%	0.0%	0.0%	0.0%
Net Income Margin	-26.8%	-14.7%	-37.0%	-92.5%	-194.6%	-102.1%
CAPEX, % of revenue	3.2%	0.6%				0.0%
ROIC	-3.8%	-12.3%	-8.8%			0.0%
ROE	-75.4%	-159.7%				0.0%
Net Debt/EBITDA	173.4x					0.0x

Revenue and profitability

Murli Industries's Revenue dropped on 53.3% in FY2015.

Net Income marign dropped on 102 pp from -92.5% to -195% in FY2015.

Management team

The company's CEO is Kamal Kishore Tapadia. Kamal Kishore Tapadia has 5 years tenure at the company.

Appendix 1: Peers in Edible Oils

Below we provide Murli Industries benchmarking against other companies in Edible Oils 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 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%
Gokul Refoils & Solvent ($GOKUL)		36.6%	-11.7%	10.9%	-8.3%
Median (7 companies)	-18.2%	22.4%	13.2%	13.1%	-17.1%
Murli Industries ($MURLIIND)		48.1%	-37.4%	-63.9%	-53.3%

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%
Gokul Refoils & Solvent ($GOKUL)	4.1%	0.5%	1.5%	2.8%	1.7%
Divya Jyoti Industries ($DIVYAJYQ)	2.4%	3.3%	2.2%	2.0%
Ruchi Infrastructure ($RUCHINFRA)	3.9%	1.7%	1.9%	1.0%
Median (6 companies)	2.9%	1.9%	1.9%	2.4%	1.7%

Top companies by CAPEX/Revenue, %


Top	FY2011	FY2012	FY2013	FY2014	FY2015
Gokul Refoils & Solvent ($GOKUL)	0.9%	0.8%	0.4%	0.4%	0.9%
Rasoya Proteins ($RASOYPR)	13.9%	3.7%	2.2%	0.2%
Ruchi Infrastructure ($RUCHINFRA)	0.4%	0.6%	0.1%	0.1%
Median (3 companies)	0.7%	0.7%	0.4%	0.2%	0.9%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Rasoya Proteins ($RASOYPR)		19.0%	12.5%	12.6%
Gokul Refoils & Solvent ($GOKUL)	15.1%	0.1%	2.8%	10.9%	6.9%
Ruchi Infrastructure ($RUCHINFRA)	9.4%	4.5%	3.5%	1.9%
Raj Oil Mills ($RAJOIL)
Sam Industries ($SAMINDUS)	12.7%	25.4%	4.9%
Median (9 companies)	12.6%	14.7%	4.9%	10.9%	6.9%
Murli Industries ($MURLIIND)	-3.8%	-12.3%	-8.8%

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
Gokul Refoils & Solvent ($GOKUL)	2.8x	46.9x	8.9x	2.3x	3.7x
Divya Jyoti Industries ($DIVYAJYQ)	8.5x	0.0x	2.9x	0.0x
Ajanta Soya ($AJANTSOY)	4.6x	8.5x	12.7x	0.0x
Median (6 companies)	3.9x	2.5x	2.8x	1.2x	3.7x

Murli Industries stock price chart

Murli Industries financials

mln.	FY2010	FY2011	FY2012

Revenue	1,292	7,363	10,904
EBITDA	1,314	74.299	-1,019.813
Net income	376.1	-1,970.020	-1,605.800
CAPEX	6,918	236.9	66.815
Debt	11,287	12,919	13,817
Cash	85.068	35.668	4.993

About Murli Industries

Murli Industries Limited engages in the production and marketing of various agro-based products primarily in India. The company operates through eight segments: Solvent Extraction, Duplex Paper Board, News Print, Captive Power Generation, Writing and Printing, SBS Board, Pulp Mill, and Cement Unit. It offers various agro-based products, including soya de-oiled cakes, refined edible oil, and acid oil. The company also manufactures and sells paper products, such as duplex boards, news print and printing paper, writing and printing paper, and solid bleached sulphate boards; and cream wove, map litho paper, copier, etc., as well as pulp. In addition, it produces various types of cement, such as Portland pozzolona and ordinary Portland cement. The company was formerly known as Murli Agro Products Limited and changed its name to Murli Industries Limited in 2006. Murli Industries Limited was founded in 1991 and is headquartered in Nagpur, India.