Ruchi Infrastructure Net Debt / EBITDA jumped on 38.8x from 13.3x to 52.1x in 2015 while EBITDA dropped on 79.7%
31-05-2015 • About Ruchi Infrastructure (
$RUCHINFRA) • By InTwits
Ruchi Infrastructure reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ruchi Infrastructure is a company in decline: FY2015 revenue growth was -59.0%, 5 years revenue CAGR was -2.5%
- EBITDA Margin is quite volatile: 0.5% in FY2015, 1.0% in FY2014, 1.9% in FY2013, 1.7% in FY2012, 3.9% in FY2011
- Ruchi Infrastructure has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has unprofitable business model: ROIC is at -1.3%
- It operates with high leverage: Net Debt/EBITDA is 52.1x while industry average is 14.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ruchi Infrastructure ($RUCHINFRA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20,640 | 29,713 | 22,751 | 25,794 | 10,565 | -59.0% |
| EBITDA | 796 | 507 | 424 | 263 | 53 | -79.7% |
| Net Income | 210 | 96 | 57 | 10 | 30 | 209.1% |
Balance Sheet
|
|---|
| Cash | 147 | 1,887 | 196 | 235 | 77 | -67.4% |
| Short Term Debt | 2,118 | 2,120 | 2,449 | 3,040 | 2,850 | -6.2% |
| Long Term Debt | 637 | 1,317 | 1,002 | 693 | 14 | -98.0% |
Cash flow
|
|---|
| Capex | 83 | 185 | 32 | 24 | 210 | 785.4% |
Ratios
|
|---|
| Revenue growth | 71.8% | 44.0% | -23.4% | 13.4% | -59.0% | |
| EBITDA growth | 90.4% | -36.2% | -16.4% | -38.0% | -79.7% | |
| EBITDA Margin | 3.9% | 1.7% | 1.9% | 1.0% | 0.5% | -0.5% |
| Net Income Margin | 1.0% | 0.3% | 0.2% | 0.0% | 0.3% | 0.2% |
| CAPEX, % of revenue | 0.4% | 0.6% | 0.1% | 0.1% | 2.0% | 1.9% |
| ROIC | 9.4% | 4.5% | 3.5% | 1.9% | -1.3% | -3.2% |
| ROE | 10.3% | 3.4% | 1.3% | -1.6% | -0.5% | 1.1% |
| Net Debt/EBITDA | 3.3x | 3.1x | 7.7x | 13.3x | 52.1x | 38.8x |
Revenue and profitability
The company's Revenue dropped on 59.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 0.46% to 4.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Ruchi Infrastructure had CAPEX/Revenue of 2.0%. CAPEX/Revenue increased slightly on 1.4 pp from 0.62% in FY2012 to 2.0% in FY2015. It's average CAPEX/Revenue for the last three years was 0.74%.Ruchi Infrastructure has spent a lot to CAPEX (392% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.30%) and ROE (-0.54%). ROIC decreased on 3.2 pp from 1.9% to -1.3% in FY2015. ROE increased slightly on 1.1 pp from -1.6% to -0.54% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 52.1x and Debt / EBITDA is 53.5x. Net Debt / EBITDA jumped on 38.8x from 13.3x to 52.1x in FY2015. Debt dropped on 23.3% in FY2015 while cash dropped on 67.4% in FY2015.
Appendix 1: Peers in Edible Oils
Below you can find Ruchi Infrastructure benchmarking vs. other companies in Edible Oils 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 |
|---|
| Natraj Proteins ($NATRAJPR) | | 16.3% | 44.1% | 14.8% | -17.1% |
| Rasoya Proteins ($RASOYPR) | -50.3% | 228.9% | 7.2% | 13.6% | |
| Ajanta Soya ($AJANTSOY) | | 22.4% | 13.2% | 13.1% | 16.8% |
| Gokul Refoils & Solvent ($GOKUL) | | 36.6% | -11.7% | 10.9% | -8.3% |
| Divya Jyoti Industries ($DIVYAJYQ) | 13.8% | 15.4% | 33.3% | -2.7% | |
| |
|---|
| Median (7 companies) | -18.2% | 22.4% | 13.2% | 10.9% | -17.1% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | | 44.0% | -23.4% | 13.4% | -59.0% |
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% | |
| Ajanta Soya ($AJANTSOY) | 0.9% | 1.0% | 0.5% | 0.7% | |
| |
|---|
| Median (5 companies) | 2.4% | 1.9% | 1.5% | 2.8% | -0.1% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 3.9% | 1.7% | 1.9% | 1.0% | 0.5% |
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% | |
| |
|---|
| Median (2 companies) | 2.1% | 0.7% | 1.3% | 0.3% | 0.9% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 0.4% | 0.6% | 0.1% | 0.1% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gokul Refoils & Solvent ($GOKUL) | 15.1% | 0.1% | 2.8% | 10.9% | 6.9% |
| Raj Oil Mills ($RAJOIL) | | | | | |
| Sam Industries ($SAMINDUS) | 12.7% | 25.4% | 4.9% | | |
| Murli Industries ($MURLIIND) | -3.8% | -12.3% | -8.8% | | |
| Natraj Proteins ($NATRAJPR) | 12.6% | 14.7% | 26.9% | | |
| |
|---|
| Median (7 companies) | 12.6% | 14.7% | 4.9% | 11.8% | 6.9% |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 9.4% | 4.5% | 3.5% | 1.9% | -1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rasoya Proteins ($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 ($AJANTSOY) | 4.6x | 8.5x | 12.7x | 0.0x | |
| Natraj Proteins ($NATRAJPR) | 6.2x | 5.1x | 1.2x | 0.0x | |
| |
|---|
| Median (5 companies) | 5.2x | 1.9x | 2.7x | 0.0x | 3.7x |
|---|
| Ruchi Infrastructure ($RUCHINFRA) | 3.3x | 3.1x | 7.7x | 13.3x | 52.1x |
