Elantas Beck India EBITDA surged on 42.8% in 2015 and EBITDA Margin increased on 5.4 pp from 12.9% to 18.3%
23-02-2016 • About Elantas Beck India (
$ELANTAS) • By InTwits
Elantas Beck India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elantas Beck India has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 67.2 in FY2015, 33.2 in FY2014, 41.7 in FY2013, 74.6 in FY2012, 163 in FY2011
- The company has highly profitable business model: ROIC is at 36.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elantas Beck India ($ELANTAS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,668 | 2,732 | 3,031 | 3,401 | 3,430 | 0.9% |
| EBITDA | 360 | 373 | 462 | 439 | 627 | 42.8% |
| Net Income | 247 | 276 | 318 | 316 | 418 | 32.1% |
Balance Sheet
|
|---|
| Cash | 120 | 146 | 104 | 65 | 108 | 65.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 163 | 75 | 42 | 33 | 67 | 102.4% |
Ratios
|
|---|
| Revenue growth | -35.2% | 2.4% | 10.9% | 12.2% | 0.9% | |
| EBITDA growth | -24.6% | 3.5% | 24.0% | -5.0% | 42.8% | |
| EBITDA Margin | 13.5% | 13.6% | 15.2% | 12.9% | 18.3% | 5.4% |
| Net Income Margin | 9.3% | 10.1% | 10.5% | 9.3% | 12.2% | 2.9% |
| CAPEX, % of revenue | 6.1% | 2.7% | 1.4% | 1.0% | 2.0% | 1.0% |
| ROIC | 17.5% | 20.4% | 33.9% | 31.0% | 36.6% | 5.5% |
| ROE | 14.1% | 17.6% | 26.9% | 25.9% | 27.2% | 1.3% |
| Net Debt/EBITDA | -0.3x | -0.4x | -0.2x | -0.1x | -0.2x | -0.0x |
Revenue and profitability
Elantas Beck India's Revenue increased slightly on 0.86% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.0 pp from -5.1% to 1.9% in FY2015.
Net Income marign increased on 2.9 pp from 9.3% to 12.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.0%. CAPEX/Revenue decreased slightly on 0.77 pp from 2.7% in FY2012 to 2.0% in FY2015. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at high and attractive ROIC (36.59%) and ROE (27.17%). ROIC increased on 5.5 pp from 31.0% to 36.6% in FY2015. ROE increased slightly on 1.3 pp from 25.9% to 27.2% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 65.1% in FY2015.
Valuation
The company's trades at EV/EBITDA 13.6x and P/E 20.7x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 15.2x with the industry average at 4.7x.
Management team
Elantas Beck India's CEO Ravindra Kumar has spent 4 years at the company.
Appendix 1: Peers in Commodity Chemicals
Below we provide Elantas Beck India benchmarking against other companies in Commodity Chemicals 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | | 354.1% | -27.9% | -83.3% | 408.0% |
| Jayshree Chemicals ($JAYCH) | | 288.9% | 17.5% | -75.2% | 262.3% |
| Jagran Production ($JAGPRO) | | 589.4% | 4.4% | 514.9% | 192.3% |
| Shree Hari Chemicals Export ($SHHARICH) | | -2.5% | -78.0% | 299.5% | 111.6% |
| Jindal Poly Films ($JINDPOLBBPH) | | -17.2% | -6.3% | 131.7% | 46.9% |
| |
|---|
| Median (37 companies) | | 19.9% | 9.9% | 10.6% | 6.3% |
|---|
| Elantas Beck India ($ELANTAS) | | 2.4% | 10.9% | 12.2% | 0.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | | | | | 104.7% |
| Mysore Petro Chemicals ($MYSORPETRO) | | | | | 47.1% |
| Aditya Birla Chemicals (India) ($ABCIL) | 33.6% | 26.8% | 27.1% | 23.6% | 21.9% |
| Indo Borax & Chemicals ($INDOBORAX) | | | | | 21.3% |
| Chemfab Alkalis ($CHEMFALKAL) | 19.0% | 22.3% | 32.9% | 24.2% | 19.8% |
| |
|---|
| Median (50 companies) | 12.1% | 9.6% | 8.3% | 8.5% | 6.6% |
|---|
| Elantas Beck India ($ELANTAS) | 13.5% | 13.6% | 15.2% | 12.9% | 18.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | 40.3% |
| Aditya Birla Chemicals (India) ($ABCIL) | 5.9% | 136.9% | 24.2% | 30.8% | 15.0% |
| Aarti Industries ($AARTIIND) | 4.8% | 8.0% | 11.2% | 11.0% | 10.4% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 8.0% | 5.1% | 6.6% | 5.9% | 8.6% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 9.2% | 15.7% | 9.4% | 5.4% | 5.4% |
| |
|---|
| Median (21 companies) | 5.6% | 5.3% | 7.2% | 5.9% | 3.3% |
|---|
| Elantas Beck India ($ELANTAS) | 6.1% | 2.7% | 1.4% | 1.0% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bodal Chemicals ($BODALCHEM) | | -1.3% | 3.3% | 39.0% | 38.3% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 10.3% | 16.0% | 18.7% | 25.0% | 23.7% |
| Aarti Industries ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| Transpek Industry ($TRANSPEK) | 15.7% | -1.7% | 14.2% | 11.0% | 17.8% |
| Balaji Amines ($BALAMINES) | 20.3% | 19.3% | 16.1% | 15.6% | 16.5% |
| |
|---|
| Median (60 companies) | 10.5% | 9.0% | 9.5% | 8.9% | 7.9% |
|---|
| Elantas Beck India ($ELANTAS) | 17.5% | 20.4% | 33.9% | 31.0% | 36.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.0x | 5.8x | 4.5x | 3.7x | 35.4x |
| India Glycols ($INDIAGLYCO) | 8.2x | 4.8x | 3.7x | 8.5x | 14.2x |
| Godrej Industries ($GODREJIND) | 6.8x | 9.9x | 5.7x | 7.9x | 10.7x |
| Kanoria Chemicals & Industries ($KANORICHEM) | 4.2x | 5.2x | 9.6x | 3.5x | 9.4x |
| Garware Polyester ($GARWARPOLY) | 0.6x | 2.2x | 3.8x | 4.0x | 5.2x |
| |
|---|
| Median (37 companies) | 2.5x | 2.6x | 3.2x | 1.4x | 1.1x |
|---|
| Elantas Beck India ($ELANTAS) | -0.3x | -0.4x | -0.2x | -0.1x | -0.2x |
