Surana Industries revenue returned to growth in FY2015: increased 4.5% vs. 58.3% decline a year earliner
31-05-2015 • About Surana Industries (
$SURANAIND) • By InTwits
Surana Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Surana Industries doesn't have a profitable business model yet: FY2015 ROIC is -6.5%
- The company operates at negative EBITDA Margin: -24.1%
- EBITDA Margin is quite volatile: -24.1% in FY2015, -7.3% in FY2014, 14.5% in FY2013, 13.0% in FY2012, 15.9% in FY2011
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Surana Industries ($SURANAIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,139 | 13,560 | 14,936 | 6,225 | 6,502 | 4.5% |
| EBITDA | 1,934 | 1,760 | 2,168 | -457 | -1,564 | |
| Net Income | 525 | 310 | 36 | -1,717 | -4,388 | |
Balance Sheet
|
|---|
| Cash | 746 | 453 | 192 | 148 | 281 | 89.7% |
| Short Term Debt | 0 | 3,939 | 4,483 | 4,423 | 4,838 | 9.4% |
| Long Term Debt | 15,072 | 14,433 | 18,118 | 23,199 | 24,756 | 6.7% |
Cash flow
|
|---|
| Capex | | 5,600 | 8,185 | 1,340 | 185 | -86.2% |
Ratios
|
|---|
| Revenue growth | 54.6% | 11.7% | 10.2% | -58.3% | 4.5% | |
| EBITDA growth | | -9.0% | 23.2% | -121.1% | 242.3% | |
| EBITDA Margin | 15.9% | 13.0% | 14.5% | -7.3% | -24.1% | -16.7% |
| Net Income Margin | 4.3% | 2.3% | 0.2% | -27.6% | -67.5% | -39.9% |
| CAPEX, % of revenue | | 41.3% | 54.8% | 21.5% | 2.8% | -18.7% |
| ROIC | | 5.8% | 5.3% | -2.7% | -6.5% | -3.8% |
| ROE | | 5.0% | 0.4% | -18.4% | -70.4% | -52.0% |
| Net Debt/EBITDA | 7.4x | 10.2x | 10.3x | | | 0.0x |
Revenue and profitability
Surana Industries's Revenue increased on 4.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 22.0% to 31.3% in FY2015.
Net Income marign dropped on 39.9 pp from -27.6% to -67.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in FY2015. The company showed big decline in CAPEX/Revenue of 38.5 pp from 41.3% in FY2012 to 2.8% in FY2015. It's average CAPEX/Revenue for the last three years was 26.4%.
Return on investment
The company operates at negative ROIC (-6.48%) and ROE (-70.39%). ROIC decreased on 3.8 pp from -2.7% to -6.5% in FY2015. ROE dropped on 52.0 pp from -18.4% to -70.4% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt increased on 7.1% in FY2015 while cash surged on 89.7% in FY2015.
Appendix 1: Peers in Iron & Steel/Interm.Products
Below you can find Surana Industries 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% |
| Vaswani Industries ($VASWANI) | | 51.4% | -2.1% | 5.6% | 12.6% |
| |
|---|
| Median (30 companies) | 11.4% | 12.5% | 3.2% | 3.4% | -0.4% |
|---|
| Surana Industries ($SURANAIND) | | 11.7% | 10.2% | -58.3% | 4.5% |
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 ($TATAMETALI) | 3.2% | -9.6% | 0.9% | 6.8% | 14.6% |
| |
|---|
| Median (26 companies) | 13.0% | 9.4% | 9.0% | 7.4% | 9.0% |
|---|
| Surana Industries ($SURANAIND) | 15.9% | 13.0% | 14.5% | -7.3% | -24.1% |
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 ($JSWSTEEL) | 22.0% | 11.9% | 14.7% | 11.3% | 12.7% |
| |
|---|
| Median (17 companies) | 12.1% | 7.5% | 10.4% | 6.6% | 5.3% |
|---|
| Surana Industries ($SURANAIND) | | 41.3% | 54.8% | 21.5% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tata Metaliks ($TATAMETALI) | 3.1% | -23.5% | -3.7% | 19.9% | 57.4% |
| Pennar Industries ($PENIND) | 31.6% | 26.8% | 18.4% | 12.3% | 15.7% |
| Maithan Alloys ($MAITHANALL) | 34.5% | 16.3% | 15.1% | 5.5% | 15.3% |
| Kirloskar Ferrous Industries ($KIRLFER) | 20.0% | 19.1% | 16.8% | 12.4% | 14.7% |
| Gallantt Metal ($GALLANTT) | 9.7% | 8.7% | 11.7% | 8.5% | 11.7% |
| |
|---|
| Median (36 companies) | 9.6% | 7.2% | 5.7% | 6.0% | 5.4% |
|---|
| Surana Industries ($SURANAIND) | | 5.8% | 5.3% | -2.7% | -6.5% |
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 |
| Kic Metaliks ($KAJARIR) | 6.6x | 9.2x | 3.0x | 18.2x | 19.8x |
| Bhushan Steel ($BHUSANSTL) | 8.1x | 6.3x | 8.6x | 12.9x | 17.7x |
| Prakash Industries ($PRAKASH) | 1.8x | 2.5x | 2.8x | 2.5x | 11.9x |
| |
|---|
| Median (25 companies) | 3.6x | 4.2x | 4.3x | 3.3x | 2.5x |
|---|
