Acc Net Income dropped on 49.4% in 2015 while EBITDA Margin increased slightly on 1.5 pp from 12.9% to 14.4%
10-02-2016 • About Acc (
$ACC) • By InTwits
Acc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Acc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 6.7%.
- CAPEX is quite volatile: 11,236 in FY2015, 16,062 in FY2014, 9,627 in FY2013, 5,722 in FY2012, 4,841 in FY2011
- The company has business model with low profitability: ROIC is at 9.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Acc ($ACC) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 100,123 | 113,582 | 111,694 | 117,388 | 117,972 | 0.5% |
| EBITDA | 19,212 | 21,966 | 16,300 | 15,133 | 17,019 | 12.5% |
| Net Income | 13,008 | 10,593 | 10,947 | 11,618 | 5,876 | -49.4% |
Balance Sheet
|
|---|
| Cash | 16,599 | 6,807 | 5,057 | 3,098 | 606 | -80.4% |
| Short Term Debt | 0 | 780 | 350 | 0 | 0 | |
| Long Term Debt | 5,107 | 850 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 4,841 | 5,722 | 9,627 | 16,062 | 11,236 | -30.0% |
Ratios
|
|---|
| Revenue growth | 21.2% | 13.4% | -1.7% | 5.1% | 0.5% | |
| EBITDA growth | 6.5% | 14.3% | -25.8% | -7.2% | 12.5% | |
| EBITDA Margin | 19.2% | 19.3% | 14.6% | 12.9% | 14.4% | 1.5% |
| Net Income Margin | 13.0% | 9.3% | 9.8% | 9.9% | 5.0% | -4.9% |
| CAPEX, % of revenue | 4.8% | 5.0% | 8.6% | 13.7% | 9.5% | -4.2% |
| ROIC | 18.5% | 20.2% | 12.7% | 11.0% | 9.9% | -1.1% |
| ROE | 19.6% | 14.8% | 14.4% | 14.5% | 7.1% | -7.4% |
| Net Debt/EBITDA | -0.6x | -0.2x | -0.3x | -0.2x | -0.0x | 0.2x |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.58 pp from 5.1% to 5.7% in FY2015.
Net Income marign decreased on 4.9 pp from 9.9% to 5.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 9.5% in FY2015. Acc's CAPEX/Revenue increased on 4.5 pp from 5.0% in FY2012 to 9.5% in FY2015. It's average CAPEX/Revenue for the last three years was 10.6%.Acc maintained rich investment policy and has spent a big chunk of EBITDA (66.0%) to CAPEX.
Return on investment
The company operates at low ROIC (9.87%) and ROE (7.06%). ROIC decreased slightly on 1.1 pp from 11.0% to 9.9% in FY2015. ROE decreased on 7.4 pp from 14.5% to 7.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 80.4% in FY2015.
Appendix 1: Peers in Cement & Cement Products
Below we provide Acc benchmarking against other companies in Cement & Cement 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 |
|---|
| Ncl Industries ($NCLIND) | | 38.2% | -15.8% | -3.0% | 30.8% |
| Indian Hume Pipe Co ($INDIANHUME) | | -20.3% | 34.5% | 18.3% | 22.7% |
| J.K.Cement ($JKCEMENT) | | 21.8% | 14.7% | -4.0% | 21.2% |
| Visaka Industries ($VIKASAS) | | 14.7% | 22.0% | -2.6% | 13.6% |
| Prism Cement ($PRISMCEM) | | 33.2% | 4.9% | 5.3% | 12.5% |
| |
|---|
| Median (15 companies) | | 14.9% | 11.7% | -1.4% | 6.4% |
|---|
| Acc ($ACC) | | 13.4% | -1.7% | 5.1% | 0.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 9.7% | 11.4% | 21.6% | 11.9% | 16.8% |
| Ambuja Cements ($AMBUJACEM) | 23.4% | 25.6% | 18.2% | 19.4% | 16.4% |
| India Cements ($INDIACEM) | 13.3% | 20.6% | 18.4% | 12.4% | 15.1% |
| Deccan Cements ($DECCANCE) | 19.2% | 22.8% | 13.2% | 14.7% | 14.9% |
| J.K.Cement ($JKCEMENT) | 13.3% | 20.3% | 19.2% | 12.7% | 13.4% |
| |
|---|
| Median (14 companies) | 13.3% | 16.2% | 13.2% | 10.6% | 10.4% |
|---|
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | 14.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | | | | | 91.1% |
| J.K.Cement ($JKCEMENT) | 14.1% | 6.5% | 18.8% | 55.8% | 16.2% |
| Birla Corporation ($BIRLACORPN) | 23.2% | 19.1% | 7.1% | 5.5% | 6.9% |
| Ambuja Cements ($AMBUJACEM) | 7.7% | 7.2% | 8.5% | 8.3% | 6.6% |
| K.C.P ($KCP) | 28.2% | 8.6% | 9.9% | 12.6% | 5.2% |
| |
|---|
| Median (11 companies) | 9.0% | 6.5% | 7.1% | 5.5% | 5.1% |
|---|
| Acc ($ACC) | 4.8% | 5.0% | 8.6% | 13.7% | 9.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 4.3% | 38.6% | 42.7% | 13.9% | 26.9% |
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | 18.0% |
| K.C.P ($KCP) | 14.9% | 17.6% | 6.7% | 7.1% | 9.3% |
| Deccan Cements ($DECCANCE) | 7.6% | 17.4% | 8.0% | 6.4% | 9.1% |
| Visaka Industries ($VIKASAS) | 16.7% | 14.1% | 16.6% | 6.4% | 8.3% |
| |
|---|
| Median (16 companies) | 7.6% | 13.7% | 8.2% | 6.4% | 8.0% |
|---|
| Acc ($ACC) | 18.5% | 20.2% | 12.7% | 11.0% | 9.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | | | | | 17.1x |
| Heidelbergcement India ($HEIDELBERG) | 11.2x | 14.0x | 12.2x | 0.0x | 10.4x |
| Prism Cement ($PRISMCEM) | 3.4x | 4.8x | 6.0x | 10.0x | 6.0x |
| J.K.Cement ($JKCEMENT) | 4.5x | 2.3x | 2.3x | 6.9x | 5.8x |
| India Cements ($INDIACEM) | 4.8x | 3.2x | 3.5x | 5.5x | 4.6x |
| |
|---|
| Median (13 companies) | 2.9x | 2.1x | 2.9x | 3.2x | 2.7x |
|---|
| Acc ($ACC) | -0.6x | -0.2x | -0.3x | -0.2x | -0.0x |
