Everest Kanto Cylinder revenue decline decelerated to 4.5% in FY2015 vs. 9.6% a year earliner

31-05-2015 • About Everest Kanto Cylinder ($EKC) • By InTwits

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

• Everest Kanto Cylinder is a company in decline: FY2015 revenue growth was -4.5%, 5 years revenue CAGR was -3.2%
• EBITDA Margin is quite volatile: 0.6% in FY2015, -5.1% in FY2014, -3.9% in FY2013, 14.5% in FY2012, 17.7% in FY2011

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Everest Kanto Cylinder ($EKC) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	7,795	6,771	5,428	4,906	4,686	-4.5%
EBITDA	1,377	980	-212	-252	26
Net Income	705	47	-1,318	-1,382	-977
Balance Sheet
Cash	503	188	248	356		-100.0%
Short Term Debt	1,303	4,106	2,010	3,097		-100.0%
Long Term Debt	2,411	457	3,498	2,709		-100.0%
Cash flow
Capex	733	389	21	196		-100.0%
Ratios
Revenue growth	41.0%	-13.1%	-19.8%	-9.6%	-4.5%
EBITDA growth	116.3%	-28.8%	-121.6%	18.8%	-110.4%
EBITDA Margin	17.7%	14.5%	-3.9%	-5.1%	0.6%	5.7%
Net Income Margin	9.0%	0.7%	-24.3%	-28.2%	-20.9%	7.3%
CAPEX, % of revenue	9.4%	5.7%	0.4%	4.0%		-4.0%
ROIC	6.5%	2.6%	-7.3%	-7.9%		7.9%
ROE	10.2%	0.6%	-18.3%	-24.1%		24.1%
Net Debt/EBITDA	2.3x	4.5x			0.0x	0.0x

Revenue and profitability

The company's Revenue decreased on 4.5% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.7 pp from -5.1% to 0.56% in FY2015.

Net Income marign increased on 7.3 pp from -28.2% to -20.9% in FY2015.

Appendix 1: Peers in Other Industrial Products

Below we provide Everest Kanto Cylinder benchmarking against other companies in Other Industrial Products 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	FY2011	FY2012	FY2013	FY2014	FY2015
Bharat Forge ($BHARATFORG)		26.4%	-18.8%	31.7%	13.5%
Simplex Castings ($SIMPLEXCAS)		6.9%	-6.6%	-21.9%	7.0%
Welcast Steels ($ZWELCAST)		8.3%	11.1%	-1.5%	0.0%
Carborundum Universal ($CARBORUNIV)		24.1%	-1.2%	7.8%	-3.5%
Median (4 companies)		16.2%	-3.9%	3.2%	3.5%
Everest Kanto Cylinder ($EKC)		-13.1%	-19.8%	-9.6%	-4.5%

Top companies by EBITDA margin, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Hindustan Wires ($HINDWRS)					27.3%
Bharat Forge ($BHARATFORG)	16.0%	16.0%	15.8%	15.5%	18.9%
Carborundum Universal ($CARBORUNIV)	18.2%	19.7%	12.3%	12.2%	13.2%
Hilton Metal Forging ($HILTON)					7.1%
Lgb Forge ($LGBFORGE)					4.6%
Median (8 companies)	16.5%	16.2%	12.9%	13.6%	5.9%
Everest Kanto Cylinder ($EKC)	17.7%	14.5%	-3.9%	-5.1%	0.6%

Top companies by CAPEX/Revenue, %

Top	FY2011	FY2012	FY2013	FY2014	FY2015
Bharat Forge ($BHARATFORG)	10.2%	15.6%	11.0%	10.1%	9.4%
Carborundum Universal ($CARBORUNIV)	5.0%	8.5%	10.9%	3.6%	3.8%
Median (2 companies)	6.6%	9.6%	10.9%	6.8%	6.6%
Everest Kanto Cylinder ($EKC)	9.4%	5.7%	0.4%	4.0%

Top companies by ROIC, %

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Bharat Forge ($BHARATFORG)	12.6%	14.6%	9.1%	12.6%	18.5%
Carborundum Universal ($CARBORUNIV)	20.1%	25.3%	11.8%	10.6%	11.0%
Lgb Forge ($LGBFORGE)	-4.7%	8.6%	2.5%	-3.6%	-0.6%
Expo Gas Containers ($EXPOGAS)	16.7%	15.4%	12.0%
Gujarat Intrux ($GUJINTRX)	10.1%	26.0%	23.7%	19.7%
Median (11 companies)	11.6%	14.6%	11.8%	11.6%	11.0%
Everest Kanto Cylinder ($EKC)	6.5%	2.6%	-7.3%	-7.9%

Top companies by Net Debt / EBITDA

Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Lgb Forge ($LGBFORGE)	5.8x	4.4x	3.7x	4.0x	5.9x
Bharat Forge ($BHARATFORG)	2.3x	2.6x	3.0x	2.2x	1.3x
Carborundum Universal ($CARBORUNIV)	1.2x	0.8x	1.5x	1.2x	0.7x
Hindustan Wires ($HINDWRS)					0.0x
Welcast Steels ($ZWELCAST)	0.8x	1.1x	-0.1x		0.0x
Median (6 companies)	4.3x	2.3x	1.5x	0.0x	0.3x
Everest Kanto Cylinder ($EKC)	2.3x	4.5x			0.0x

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