Vadilal Industries reports 13.4% EBITDA decline while 9.6% Revenue growth
01-06-2015 • About Vadilal Industries (
$VADILALIND) • By InTwits
Vadilal Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 8.9% in FY2015, 11.2% in FY2014, 11.6% in FY2013, 19.8% in FY2012, 10.1% in FY2011
- Vadilal Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 10.0%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 89.6 in FY2015, 218 in FY2014, 305 in FY2013, 347 in FY2012, 480 in FY2011
- The company has business model with low profitability: ROIC is at 7.9%
- It operates with high leverage: Net Debt/EBITDA is 4.0x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vadilal Industries ($VADILALIND) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,388 | 2,846 | 3,237 | 3,673 | 4,026 | 9.6% |
| EBITDA | 240 | 564 | 374 | 413 | 358 | -13.4% |
| Net Income | 47 | 58 | 50 | 23 | 24 | 6.0% |
Balance Sheet
|
|---|
| Cash | 6 | 6 | 9 | 14 | 42 | 192.4% |
| Short Term Debt | 765 | 616 | 933 | 814 | 865 | 6.3% |
| Long Term Debt | 623 | 835 | 756 | 820 | 613 | -25.3% |
Cash flow
|
|---|
| Capex | 480 | 347 | 305 | 218 | 90 | -58.9% |
Ratios
|
|---|
| Revenue growth | -50.6% | 19.2% | 13.7% | 13.5% | 9.6% | |
| EBITDA growth | 23.3% | 134.7% | -33.7% | 10.5% | -13.4% | |
| EBITDA Margin | 10.1% | 19.8% | 11.6% | 11.2% | 8.9% | -2.4% |
| Net Income Margin | 2.0% | 2.0% | 1.6% | 0.6% | 0.6% | -0.0% |
| CAPEX, % of revenue | 20.1% | 12.2% | 9.4% | 5.9% | 2.2% | -3.7% |
| ROIC | 9.6% | 20.5% | 9.2% | 9.4% | 7.9% | -1.5% |
| ROE | 11.5% | 7.6% | 4.5% | 2.0% | 2.1% | 0.1% |
| Net Debt/EBITDA | 5.8x | 2.6x | 4.5x | 3.9x | 4.0x | 0.1x |
Revenue and profitability
The company's Revenue increased on 9.6% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 11.2% to 8.9% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
Vadilal Industries's CAPEX/Revenue was 2.2% in FY2015. CAPEX/Revenue decreased on 10.0 pp from 12.2% in FY2012 to 2.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.9%.
Return on investment
The company operates at low ROIC (7.94%) and ROE (2.15%). ROIC decreased slightly on 1.5 pp from 9.4% to 7.9% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.1x. Net Debt / EBITDA increased on 0.1x from 3.9x to 4.0x in FY2015. Debt decreased on 9.6% in FY2015 while cash surged on 192% in FY2015.
Valuation
The company's trades at EV/EBITDA 13.8x and P/E 144.5x while industy averages are 10.5x and 26.1x. Vadilal Industries's EV/(EBITDA-CAPEX) is 18.5x with the industry average at 4.7x.
Appendix 1: Peers in Packaged Foods
Below you can find Vadilal Industries benchmarking vs. other companies in Packaged Foods 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 |
|---|
| Simran Farms ($SIMRAN) | | 38.4% | 23.8% | 27.5% | 23.4% |
| Heritage Foods ($HERITGFOOD) | | 27.1% | 15.0% | 7.5% | 20.4% |
| Rcl Foods ($RCLFOODS) | | -56.8% | -34.2% | 18.2% | 17.8% |
| Umang Dairies ($UMANGDAIR) | | 46.8% | 15.7% | 24.5% | 16.1% |
| Britannia Industries ($BRITANNIA) | | 19.0% | 12.4% | 11.3% | 13.8% |
| |
|---|
| Median (13 companies) | -28.9% | 14.7% | 15.0% | 16.0% | 9.6% |
|---|
| Vadilal Industries ($VADILALIND) | | 19.2% | 13.7% | 13.5% | 9.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 18.8% | 18.6% | 17.8% | 22.5% | 17.2% |
| Sampre Nutritions ($SAMPRE) | | | | | 16.8% |
| Krbl ($KRBL) | 14.7% | 14.1% | 14.2% | 15.1% | 15.4% |
| Adf Foods ($ADFFOODS) | 16.2% | 13.5% | 11.2% | 8.6% | 14.5% |
| Britannia Industries ($BRITANNIA) | 5.2% | 5.7% | 6.9% | 9.2% | 11.1% |
| |
|---|
| Median (14 companies) | 5.8% | 7.2% | 7.1% | 7.1% | 6.6% |
|---|
| Vadilal Industries ($VADILALIND) | 10.1% | 19.8% | 11.6% | 11.2% | 8.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 6.4% | 8.9% | 6.6% | 10.4% | 7.7% |
| Krbl ($KRBL) | 5.8% | 4.1% | 4.0% | 6.1% | 7.3% |
| Umang Dairies ($UMANGDAIR) | 1.2% | 2.0% | 4.4% | 2.7% | 3.2% |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 3.6% | 2.7% | | 4.3% | 2.5% |
| Heritage Foods ($HERITGFOOD) | 2.8% | 2.1% | 1.9% | 3.7% | 2.5% |
| |
|---|
| Median (7 companies) | 3.1% | 3.7% | 3.9% | 3.7% | 2.5% |
|---|
| Vadilal Industries ($VADILALIND) | 20.1% | 12.2% | 9.4% | 5.9% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kse ($KSE) | 14.7% | 27.7% | 14.1% | 36.9% | 69.0% |
| Britannia Industries ($BRITANNIA) | 17.8% | 24.6% | 33.7% | 54.0% | 59.4% |
| Glaxosmithkline Consumer Healthcare ($GSKCONS) | 45.0% | 44.6% | | | 36.2% |
| Umang Dairies ($UMANGDAIR) | 54.8% | 93.5% | 55.6% | 22.3% | 28.4% |
| Krbl ($KRBL) | 14.4% | 11.7% | 14.5% | 18.3% | 17.0% |
| |
|---|
| Median (16 companies) | 13.1% | 12.1% | 14.1% | 22.3% | 28.4% |
|---|
| Vadilal Industries ($VADILALIND) | 9.6% | 20.5% | 9.2% | 9.4% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Venky'S (India) ($VENKYS) | 0.9x | 2.6x | 2.8x | 6.7x | 3.9x |
| Krbl ($KRBL) | 3.7x | 4.1x | 2.9x | 3.0x | 2.7x |
| Heritage Foods ($HERITGFOOD) | 3.5x | 2.2x | 0.9x | 1.0x | 1.4x |
| Umang Dairies ($UMANGDAIR) | 1.8x | 0.6x | 0.5x | 1.7x | 1.1x |
| Sampre Nutritions ($SAMPRE) | 2.9x | 0.0x | 0.0x | | 0.0x |
| |
|---|
| Median (13 companies) | 2.2x | 1.7x | 0.8x | 0.7x | 0.0x |
|---|
| Vadilal Industries ($VADILALIND) | 5.8x | 2.6x | 4.5x | 3.9x | 4.0x |
