Vallabh Steels revenue decline accelerated from 15.7% in FY2014 to 18.8% in FY2015
31-05-2015 • About Vallabh Steels (
$VALLABHSQ) • By InTwits
Vallabh Steels reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vallabh Steels is a company in decline: FY2015 revenue growth was -18.8%, 5 years revenue CAGR was -2.6%
- EBITDA Margin is declining: in FY2015 vs. 3.8% in FY2014 vs. 3.1% in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vallabh Steels ($VALLABHSQ) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,244 | 2,229 | 2,012 | 1,696 | 1,377 | -18.8% |
| EBITDA | 70 | 107 | 90 | 64 | | -100.0% |
| Net Income | 6 | 16 | 14 | 26 | 23 | -12.3% |
Balance Sheet
|
|---|
| Cash | 17 | 18 | 27 | | | |
| Short Term Debt | 669 | 592 | 697 | | | |
| Long Term Debt | 56 | 26 | 4 | | | |
Cash flow
|
|---|
| Capex | 21 | 16 | 8 | | | |
Ratios
|
|---|
| Revenue growth | 43.1% | -0.7% | -9.7% | -15.7% | -18.8% | |
| EBITDA growth | -19.4% | 53.3% | -16.5% | -28.9% | | |
| EBITDA Margin | 3.1% | 4.8% | 4.5% | 3.8% | 0.0% | -3.8% |
| Net Income Margin | 0.2% | 0.7% | 0.7% | 1.5% | 1.7% | 0.1% |
| CAPEX, % of revenue | 0.9% | 0.7% | 0.4% | | | 0.0% |
| ROIC | 4.9% | 8.5% | 6.8% | | | 0.0% |
| ROE | 1.4% | 4.0% | 3.4% | | | 0.0% |
| Net Debt/EBITDA | 10.1x | 5.6x | 7.5x | 0.0x | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 18.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Appendix 1: Peers in Iron & Steel Products
Below we provide Vallabh Steels benchmarking against other companies in Iron & Steel 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Msp Steel & Power ($MSPL) | -61.2% | 19.7% | 60.6% | 29.4% | |
| Apl Apollo Tubes ($APLAPOLLO) | | 54.5% | 44.2% | 24.3% | 25.7% |
| Metal Coatings (India) ($METALCO) | | 20.4% | -15.8% | 13.0% | 2.6% |
| Usha Martin ($USHAMART) | | 10.4% | 7.8% | 12.5% | 12.0% |
| Lakshmi Precision Screws ($LAKPRE) | | 9.9% | -6.2% | 7.5% | 7.9% |
| |
|---|
| Median (10 companies) | -31.6% | 20.1% | -6.8% | 7.2% | 25.7% |
|---|
| Vallabh Steels ($VALLABHSQ) | | -0.7% | -9.7% | -15.7% | -18.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gandhi Special Tubes ($GANDHITUBE) | | | | | 25.5% |
| National Fittings ($NATFIT) | | | | | 19.3% |
| Usha Martin ($USHAMART) | 18.7% | 13.2% | 18.1% | 18.7% | 16.5% |
| Lakshmi Precision Screws ($LAKPRE) | 14.5% | 15.9% | 16.2% | 7.0% | 12.4% |
| Uni Abex Alloy Products ($UNIABEXAL) | | | | | 7.5% |
| |
|---|
| Median (11 companies) | 9.0% | 6.0% | 6.4% | 6.8% | 5.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Usha Martin ($USHAMART) | 26.0% | 21.6% | 23.5% | 29.0% | 13.2% |
| Apl Apollo Tubes ($APLAPOLLO) | 8.8% | 5.6% | 4.2% | 5.1% | 5.9% |
| Gandhi Special Tubes ($GANDHITUBE) | | | | | 4.0% |
| |
|---|
| Median (3 companies) | 11.6% | 6.0% | 3.4% | 15.4% | 5.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 20.5% | 18.2% | 19.5% | 16.0% | 16.6% |
| Gandhi Special Tubes ($GANDHITUBE) | 31.2% | 28.3% | 18.9% | 13.2% | 11.1% |
| Usha Martin ($USHAMART) | 9.5% | 4.3% | 6.5% | 7.6% | 5.6% |
| Msp Steel & Power ($MSPL) | 6.4% | -2.8% | 7.2% | 5.9% | |
| Lakshmi Precision Screws ($LAKPRE) | 13.7% | 14.4% | 11.9% | 3.1% | 11.9% |
| |
|---|
| Median (23 companies) | 9.5% | 8.5% | 8.7% | 6.7% | 11.5% |
|---|
| Vallabh Steels ($VALLABHSQ) | 4.9% | 8.5% | 6.8% | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lakshmi Precision Screws ($LAKPRE) | 2.4x | 2.7x | 3.4x | 8.1x | 4.4x |
| Msp Steel & Power ($MSPL) | 9.2x | | 6.4x | 6.6x | |
| Usha Martin ($USHAMART) | 2.6x | 10.0x | 4.8x | 4.8x | 5.2x |
| Apl Apollo Tubes ($APLAPOLLO) | 2.5x | 2.7x | 2.8x | 3.1x | 2.3x |
| National Fittings ($NATFIT) | 0.6x | 0.8x | 0.1x | 0.0x | 0.0x |
| |
|---|
| Median (13 companies) | 2.5x | 2.6x | 3.4x | 0.0x | 0.0x |
|---|
| Vallabh Steels ($VALLABHSQ) | 10.1x | 5.6x | 7.5x | 0.0x | |
