Shree Digvijay Cement Co EBITDA surged on 20.4% in 2015 and EBITDA Margin increased slightly on 1.6 pp from 4.3% to 5.9%
10-02-2016 • About Shree Digvijay Cement Co (
$SHREDIGCEM) • By InTwits
Shree Digvijay Cement Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Shree Digvijay Cement Co is a company in decline: FY2015 revenue growth was -11.6%, 5 years revenue CAGR was -3.4%
- EBITDA Margin is quite volatile: 5.9% in FY2015, 4.3% in FY2014, -0.8% in FY2013, 10.8% in FY2012, 5.1% in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Shree Digvijay Cement Co ($SHREDIGCEM) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,337 | 3,834 | 3,318 | 4,137 | 3,655 | -11.6% |
| EBITDA | 170 | 413 | -28 | 179 | 216 | 20.4% |
| Net Income | 94 | 413 | -355 | 37 | -45 | -222.4% |
Balance Sheet
|
|---|
| Cash | 45 | 37 | 225 | 472 | 529 | 12.1% |
| Short Term Debt | 0 | 0 | 638 | 860 | 860 | 0.0% |
| Long Term Debt | 281 | 291 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 454 | 157 | 283 | 350 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -23.4% | 14.9% | -13.5% | 24.7% | -11.6% | |
| EBITDA growth | -22.6% | 142.3% | -106.7% | -746.5% | 20.4% | |
| EBITDA Margin | 5.1% | 10.8% | -0.8% | 4.3% | 5.9% | 1.6% |
| Net Income Margin | 2.8% | 10.8% | -10.7% | 0.9% | -1.2% | -2.1% |
| CAPEX, % of revenue | 13.6% | 4.1% | 8.5% | 8.5% | | -8.5% |
| ROIC | 3.6% | 13.3% | -6.2% | 1.4% | 0.4% | -1.1% |
| ROE | 5.3% | 20.2% | -17.1% | 1.9% | -2.3% | -4.3% |
| Net Debt/EBITDA | 1.4x | 0.6x | | 2.2x | 1.5x | -0.6x |
Revenue and profitability
The company's Revenue dropped on 11.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.6 pp from 4.3% to 5.9% in FY2015.
Net Income marign decreased on 2.1 pp from 0.88% to -1.2% in FY2015.
Return on investment
The company operates at low but positive ROIC (0.37%) and negative ROE (-2.34%). ROIC decreased slightly on 1.1 pp from 1.4% to 0.37% in FY2015. ROE decreased on 4.3 pp from 1.9% to -2.3% in FY2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.2x to 1.5x in FY2015. Debt didn't change in FY2015 while cash surged on 12.1% in FY2015.
Management team
Kk Rajeev Nambiar is a Shree Digvijay Cement Co's CEO. Kk Rajeev Nambiar has spent 3 years at the company.
Appendix 1: Peers in Cement & Cement Products
Below you can find Shree Digvijay Cement Co benchmarking vs. other companies in Cement & Cement 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 |
|---|
| 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 ($PRISMCEM) | | 33.2% | 4.9% | 5.3% | 12.5% |
| |
|---|
| Median (15 companies) | | 14.7% | 11.7% | -1.4% | 6.4% |
|---|
| Shree Digvijay Cement Co ($SHREDIGCEM) | | 14.9% | -13.5% | 24.7% | -11.6% |
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% |
| Acc ($ACC) | 19.2% | 19.3% | 14.6% | 12.9% | 14.4% |
| |
|---|
| Median (14 companies) | 13.3% | 19.2% | 13.6% | 11.8% | 12.0% |
|---|
| Shree Digvijay Cement Co ($SHREDIGCEM) | 5.1% | 10.8% | -0.8% | 4.3% | 5.9% |
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% |
| Acc ($ACC) | 4.8% | 5.0% | 8.6% | 13.7% | 9.5% |
| Birla Corporation ($BIRLACORPN) | 23.2% | 19.1% | 7.1% | 5.5% | 6.9% |
| Ambuja Cements ($AMBUJACEM) | 7.7% | 7.2% | 8.5% | 8.3% | 6.6% |
| |
|---|
| Median (12 companies) | 7.7% | 6.5% | 7.1% | 5.5% | 5.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 4.3% | 38.6% | 42.7% | 13.9% | 26.9% |
| Indian Hume Pipe Co ($INDIANHUME) | 15.5% | 7.6% | 13.8% | 15.0% | 18.0% |
| Acc ($ACC) | 18.5% | 20.2% | 12.7% | 11.0% | 9.9% |
| 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% |
| |
|---|
| Median (16 companies) | 10.2% | 15.8% | 9.8% | 6.4% | 8.3% |
|---|
| Shree Digvijay Cement Co ($SHREDIGCEM) | 3.6% | 13.3% | -6.2% | 1.4% | 0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Udaipur Cement Works ($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 | 2.8x | 3.2x | 2.7x |
|---|
| Shree Digvijay Cement Co ($SHREDIGCEM) | 1.4x | 0.6x | | 2.2x | 1.5x |
