Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills revenue jumped on 12.7% in 2015 and EBITDA Margin showed almost no change
30-05-2015 • About Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills (
$RAIREKMOH) • By InTwits
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.1% in FY2015 vs. 5.5% in FY2014 vs. 6.0% in FY2011
- It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,350 | 2,271 | 2,516 | 2,827 | 3,186 | 12.7% |
| EBITDA | 142 | 93 | 144 | 157 | 162 | 3.0% |
| Net Income | 11 | -27 | 1 | 14 | 21 | 49.3% |
Balance Sheet
|
|---|
| Cash | 2 | 22 | | | 15 | |
| Short Term Debt | 329 | 480 | | | 556 | |
| Long Term Debt | 544 | 472 | | | 204 | |
Cash flow
|
|---|
| Capex | 16 | 22 | | | 5 | |
Ratios
|
|---|
| Revenue growth | -38.0% | -3.4% | 10.8% | 12.4% | 12.7% | |
| EBITDA growth | 41.4% | -34.3% | 54.7% | 8.8% | 3.0% | |
| EBITDA Margin | 6.0% | 4.1% | 5.7% | 5.5% | 5.1% | -0.5% |
| Net Income Margin | 0.5% | -1.2% | 0.1% | 0.5% | 0.7% | 0.2% |
| CAPEX, % of revenue | 0.7% | 1.0% | | | 0.2% | 0.2% |
| ROIC | 7.2% | 3.5% | | | | 0.0% |
| ROE | 4.0% | -10.6% | | | | 0.0% |
| Net Debt/EBITDA | 6.1x | 10.0x | 0.0x | 0.0x | 4.6x | 4.6x |
Revenue and profitability
The company's Revenue surged on 12.7% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 16.0 pp from -6.3% to 9.7% 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 0.16%. Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills showed small CAPEX/Revenue decline of 0.81 pp from 0.98% in FY2012 to 0.16% in FY2015.
Leverage (Debt)
Debt level is 4.6x Net Debt / EBITDA and 4.7x Debt / EBITDA. Net Debt / EBITDA surged4.6x from 0x to 4.6x in FY2015. Debt jumped while cash jumped.
Appendix 1: Peers in Textiles
Below you can find Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills benchmarking vs. other companies in Textiles 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 |
|---|
| Santaram Spinners ($SANTASPN) | | 6.0% | 60.7% | -40.9% | 112.0% |
| Asahi Industries ($ASAHIIND) | | 36.2% | 23.0% | 24.4% | 103.9% |
| Blue Chip Tex Industries ($BLUECHIPT) | | 303.8% | 12.9% | 29.9% | 56.1% |
| Jaybharat Textiles & Real Estate ($JAYTEX) | | 17.2% | -26.3% | 0.4% | 38.0% |
| Binayak Tex Processors ($ZBINTXPP) | | -1.2% | -6.8% | 17.3% | 27.0% |
| |
|---|
| Median (63 companies) | -37.8% | 5.0% | 9.3% | 14.4% | -0.5% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | | -3.4% | 10.8% | 12.4% | 12.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sil Investments ($SILINV) | | | | | 93.8% |
| Swadeshi Polytex ($SWADPOL) | | | | | 64.4% |
| Binny ($BINNY) | | | | | 60.9% |
| Ruby Mills ($RUBYMILLS) | 25.2% | 28.3% | 25.1% | 28.6% | 29.3% |
| Premier Synthetics ($PREMSYN) | | | | | 25.9% |
| |
|---|
| Median (73 companies) | 12.9% | 6.5% | 9.5% | 10.1% | 8.0% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 6.0% | 4.1% | 5.7% | 5.5% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nitin Spinners ($NITINSPIN) | 0.2% | 1.9% | 2.6% | 8.0% | 42.3% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 2.4% | 18.6% | 24.1% | 6.8% | 16.8% |
| SRF ($SRF) | 0.0% | 0.0% | 18.7% | 20.0% | 11.4% |
| Welspun India ($WELSPUNIND) | 11.3% | 5.6% | 7.8% | 16.4% | 10.9% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 2.3% | 3.4% | 1.8% | 5.6% | 10.7% |
| |
|---|
| Median (18 companies) | 4.5% | 3.4% | 5.6% | 6.8% | 6.7% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 0.7% | 1.0% | | | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Welspun India ($WELSPUNIND) | 5.1% | 9.3% | 15.6% | 8.5% | 21.9% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 9.9% | -0.5% | 9.2% | 8.3% | 20.4% |
| Nitin Spinners ($NITINSPIN) | 13.8% | 6.0% | 19.5% | 21.5% | 17.5% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 16.0% | 9.5% | 13.6% | 19.8% | 14.6% |
| Arvind ($ARVIND) | 9.9% | 11.3% | 11.2% | 13.7% | 13.2% |
| |
|---|
| Median (102 companies) | 10.1% | 3.6% | 9.2% | 9.2% | 9.0% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 7.2% | 3.5% | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bombay Rayon Fashions ($BRFL) | 5.9x | 4.9x | 4.9x | 11.6x | 10.0x |
| Ruby Mills ($RUBYMILLS) | 15.9x | 12.6x | 15.3x | 10.8x | 8.6x |
| Dcm ($DCM) | 3.1x | 13.5x | 3.5x | 3.7x | 5.5x |
| Raymond ($RAYMOND) | 3.3x | 3.7x | 4.6x | 3.7x | 4.1x |
| Binny ($BINNY) | | | 12.0x | 0.0x | 4.0x |
| |
|---|
| Median (62 companies) | 3.7x | 3.8x | 3.2x | 0.0x | 0.0x |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 6.1x | 10.0x | 0.0x | 0.0x | 4.6x |
