Msp Steel & Power EBITDA dropped on 97.2% in 2015 and Revenue decreased on 9.2%
08-06-2015 • About Msp Steel & Power (
$MSPL) • By InTwits
Msp Steel & Power reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Msp Steel & Power is a company in decline: FY2015 revenue growth was -9.2%, 5 years revenue CAGR was -2.6%
- EBITDA Margin is quite volatile: 0.4% in FY2015, 13.8% in FY2014, 17.7% in FY2013, -1.1% in FY2012, 15.8% in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Msp Steel & Power ($MSPL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,793 | 5,739 | 9,217 | 11,929 | 10,831 | -9.2% |
| EBITDA | 760 | -63 | 1,635 | 1,650 | 46 | -97.2% |
| Net Income | 502 | -965 | 201 | 213 | -1,036 | -586.3% |
Balance Sheet
|
|---|
| Cash | 84 | 51 | 26 | 20 | | -100.0% |
| Short Term Debt | 2,640 | 4,511 | 5,046 | 4,897 | | -100.0% |
| Long Term Debt | 4,415 | 5,302 | 5,493 | 5,956 | | -100.0% |
Cash flow
|
|---|
| Capex | 3,412 | 2,198 | 1,369 | 1,835 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -61.2% | 19.7% | 60.6% | 29.4% | -9.2% | |
| EBITDA growth | 9.8% | -108.3% | -2,705.9% | 0.9% | -97.2% | |
| EBITDA Margin | 15.8% | -1.1% | 17.7% | 13.8% | 0.4% | -13.4% |
| Net Income Margin | 10.5% | -16.8% | 2.2% | 1.8% | -9.6% | -11.3% |
| CAPEX, % of revenue | 71.2% | 38.3% | 14.8% | 15.4% | | -15.4% |
| ROIC | 6.4% | -2.8% | 7.2% | 5.9% | | -5.9% |
| ROE | 18.7% | -28.1% | 3.8% | 3.1% | | -3.1% |
| Net Debt/EBITDA | 9.2x | | 6.4x | 6.6x | 0.0x | -6.6x |
Revenue and profitability
The company's Revenue decreased on 9.2% in FY2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 13.4 pp from 13.8% to 0.43% in FY2015.
Net Income marign dropped on 11.3 pp from 1.8% to -9.6% in FY2015.
Appendix 1: Peers in Iron & Steel Products
Below we provide Msp Steel & Power 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 |
|---|
| Bedmutha Industries ($BEDMUTHA) | | 10.7% | -7.4% | 2.7% | 44.6% |
| Remi Edelstahl Tubulars ($REMIEDEL) | | 40.9% | -10.8% | -24.4% | 40.7% |
| Nile ($NILE) | | 7.5% | -19.1% | 6.9% | 38.7% |
| Apl Apollo Tubes ($APLAPOLLO) | | 54.5% | 44.2% | 24.3% | 25.7% |
| Usha Martin ($USHAMART) | | 10.4% | 7.8% | 12.5% | 12.0% |
| |
|---|
| Median (10 companies) | | 15.6% | -8.6% | 4.8% | 9.9% |
|---|
| Msp Steel & Power ($MSPL) | | 19.7% | 60.6% | 29.4% | -9.2% |
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 ($USHAMART) | 18.7% | 13.2% | 18.1% | 18.7% | 16.5% |
| Shree Steel Wire Ropes ($SSWRL) | | | | | 12.5% |
| Lakshmi Precision Screws ($LAKPRE) | 14.5% | 15.9% | 16.2% | 7.0% | 12.4% |
| |
|---|
| Median (13 companies) | 6.7% | 6.0% | 5.6% | 6.3% | 5.9% |
|---|
| Msp Steel & Power ($MSPL) | 15.8% | -1.1% | 17.7% | 13.8% | 0.4% |
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 ($GANDHITUBE) | | | | | 4.0% |
| |
|---|
| Median (3 companies) | 6.5% | 5.6% | 1.6% | 17.1% | 5.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Apl Apollo Tubes ($APLAPOLLO) | 20.5% | 18.2% | 19.5% | 16.0% | 16.6% |
| Lakshmi Precision Screws ($LAKPRE) | 13.7% | 14.4% | 11.9% | 3.1% | 11.9% |
| Gandhi Special Tubes ($GANDHITUBE) | 31.2% | 28.3% | 18.9% | 13.2% | 11.1% |
| Usha Martin ($USHAMART) | 9.5% | 4.3% | 6.5% | 7.6% | 5.6% |
| National Fittings ($NATFIT) | 26.0% | 18.6% | 22.1% | | |
| |
|---|
| Median (22 companies) | 9.5% | 8.5% | 8.7% | 7.6% | 11.5% |
|---|
| Msp Steel & Power ($MSPL) | 6.4% | -2.8% | 7.2% | 5.9% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Usha Martin ($USHAMART) | 2.6x | 10.0x | 4.8x | 4.8x | 5.2x |
| Lakshmi Precision Screws ($LAKPRE) | 2.4x | 2.7x | 3.4x | 8.1x | 4.4x |
| Apl Apollo Tubes ($APLAPOLLO) | 2.5x | 2.7x | 2.8x | 3.1x | 2.3x |
| Uni Abex Alloy Products ($UNIABEXAL) | -0.3x | 0.0x | 1.6x | 0.0x | 0.0x |
| National Fittings ($NATFIT) | 0.6x | 0.8x | 0.1x | 0.0x | 0.0x |
| |
|---|
| Median (11 companies) | 2.5x | 2.6x | 3.4x | 0.0x | 0.0x |
|---|
| Msp Steel & Power ($MSPL) | 9.2x | | 6.4x | 6.6x | 0.0x |
