Vesuvius India Net Income jumped on 24.4% in 2015 and Revenue increased on 7.2%
04-04-2016 • About Vesuvius India (
$VESUVIUS) • By InTwits
Vesuvius India reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vesuvius India has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 853 in FY2015, 277 in FY2014, 195 in FY2013, 395 in FY2012, 314 in FY2011
- The company has highly profitable business model: ROIC is at 21.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vesuvius India ($VESUVIUS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,403 | 5,623 | 6,012 | 6,517 | 6,985 | 7.2% |
| EBITDA | 971 | 994 | 1,127 | 1,015 | 1,255 | 23.6% |
| Net Income | 552 | 558 | 652 | 592 | 736 | 24.4% |
Balance Sheet
|
|---|
| Cash | 124 | 154 | 59 | 947 | 1,730 | 82.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 382 | 238 | 242 | 221 | 185 | -16.1% |
Ratios
|
|---|
| Revenue growth | -34.2% | 4.1% | 6.9% | 8.4% | 7.2% | |
| EBITDA growth | 12.8% | 2.4% | 13.4% | -10.0% | 23.6% | |
| EBITDA Margin | 18.0% | 17.7% | 18.8% | 15.6% | 18.0% | 2.4% |
| Net Income Margin | 10.2% | 9.9% | 10.8% | 9.1% | 10.5% | 1.5% |
| CAPEX, % of revenue | 7.1% | 4.2% | 4.0% | 3.4% | 2.7% | -0.7% |
| ROIC | 23.1% | 25.0% | 25.0% | 19.3% | 21.6% | 2.2% |
| ROE | 20.0% | 17.4% | 17.6% | 14.1% | 15.7% | 1.6% |
| Net Debt/EBITDA | -0.1x | -0.2x | -0.1x | -0.9x | -1.4x | -0.4x |
Revenue and profitability
Vesuvius India's Revenue increased on 7.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 10.4% to 11.8% in FY2015.
Net Income marign increased slightly on 1.5 pp from 9.1% to 10.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Vesuvius India's CAPEX/Revenue was 2.7% in FY2015. CAPEX/Revenue decreased slightly on 1.6 pp from 4.2% in FY2012 to 2.7% in FY2015. Average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at high and attractive ROIC (21.56%) while ROE is a bit lower (15.72%). ROIC increased on 2.2 pp from 19.3% to 21.6% in FY2015. ROE increased slightly on 1.6 pp from 14.1% to 15.7% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 82.7% in FY2015.
Valuation
The company's trades at EV/EBITDA 10.4x and P/E 20.1x while industy averages are 10.5x and 26.1x. Vesuvius India's EV/(EBITDA-CAPEX) is 12.2x with the industry average at 4.7x.
Appendix 1: Peers in Other Industrial Goods
Below we provide Vesuvius India benchmarking against other companies in Other Industrial Goods 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 |
|---|
| Gee ($GEE) | | 17.7% | 7.6% | -10.2% | 7.6% |
| Ifgl Refractories ($IFGLREFRAC) | | 28.2% | 11.2% | 15.9% | 1.2% |
| Amd Industries ($AMDIND) | | 31.8% | -15.5% | 21.0% | -9.9% |
| Graphite India ($GRPHIDM) | | 32.5% | 1.9% | 3.1% | -14.9% |
| Heg ($HEG) | | 27.9% | 13.6% | -9.8% | -15.9% |
| |
|---|
| Median (7 companies) | | 30.0% | 11.2% | 3.1% | -14.9% |
|---|
| Vesuvius India ($VESUVIUS) | | 4.1% | 6.9% | 8.4% | 7.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snl Bearings ($SNL) | | | | | 29.0% |
| Heg ($HEG) | 20.7% | 17.0% | 18.1% | 16.9% | 16.3% |
| Amd Industries ($AMDIND) | 15.4% | 15.3% | 12.3% | 16.4% | 15.3% |
| Ifgl Refractories ($IFGLREFRAC) | 8.6% | 13.2% | 8.5% | 15.1% | 11.3% |
| Graphite India ($GRPHIDM) | 21.7% | 16.9% | 14.1% | 12.7% | 8.2% |
| |
|---|
| Median (8 companies) | 14.2% | 13.2% | 8.5% | 13.9% | 9.8% |
|---|
| Vesuvius India ($VESUVIUS) | 18.0% | 17.7% | 18.8% | 15.6% | 18.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heg ($HEG) | 7.3% | 14.4% | 9.3% | 18.7% | 2.6% |
| Ifgl Refractories ($IFGLREFRAC) | 3.3% | 0.8% | 2.9% | 1.3% | 2.5% |
| Insilco ($INSILCO) | | | | | 1.6% |
| Graphite India ($GRPHIDM) | 6.8% | 7.1% | 2.7% | 1.2% | 1.6% |
| |
|---|
| Median (4 companies) | 5.9% | 4.9% | 2.8% | 2.1% | 2.1% |
|---|
| Vesuvius India ($VESUVIUS) | 7.1% | 4.2% | 4.0% | 3.4% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 11.8% | 20.0% | 11.7% | 23.5% | 15.7% |
| Heg ($HEG) | 9.8% | 9.0% | 10.4% | 8.3% | 5.5% |
| Graphite India ($GRPHIDM) | 13.3% | 12.6% | 8.6% | 8.0% | 4.2% |
| De Nora India ($DENORA) | 27.1% | 61.7% | 19.1% | | |
| Snl Bearings ($SNL) | 54.6% | 61.1% | 48.2% | 31.9% | |
| |
|---|
| Median (13 companies) | 11.8% | 15.3% | 12.0% | 20.2% | 5.5% |
|---|
| Vesuvius India ($VESUVIUS) | 23.1% | 25.0% | 25.0% | 19.3% | 21.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heg ($HEG) | 3.9x | 5.2x | 4.1x | 3.3x | 4.1x |
| Graphite India ($GRPHIDM) | 1.0x | 2.0x | 2.7x | 1.7x | 2.4x |
| Ifgl Refractories ($IFGLREFRAC) | 2.9x | 1.2x | 2.1x | 0.7x | 0.9x |
| Iykot Hitech Toolroom ($IYKOTHITE) | 1.0x | 0.0x | | | 0.0x |
| Snl Bearings ($SNL) | 0.3x | 0.2x | 0.6x | 1.1x | 0.0x |
| |
|---|
| Median (7 companies) | 1.7x | 1.4x | 2.4x | 0.9x | 0.0x |
|---|
| Vesuvius India ($VESUVIUS) | -0.1x | -0.2x | -0.1x | -0.9x | -1.4x |
