Coromandel Engineering Company reports 52.8% EBITDA decline in 2016 and 43.0% Revenue decline
25-04-2016 • About Coromandel Engineering Company (
$COROENGG) • By InTwits
Coromandel Engineering Company reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 8.6% in FY2016, 10.4% in FY2015, 0.9% in FY2014, 2.7% in FY2013, -11.9% in FY2012
- The company has business model with low profitability: ROIC is 7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Coromandel Engineering Company's Revenue dropped on 43.0%. Revenue decline was accelerating on average at -20.7 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.9 pp from -3.8% to 2.1% in FY2016. EBITDA Margin followed a growing trend at 4.9 pp per annum in FY2012-FY2016.
Net Income margin showed almost no change in FY2016.
Return on investment
The company operates at low ROIC (7.9%) and ROE (1.0%). ROIC decreased on 7.0 pp from 15.0% to 7.9% in FY2016. ROE decreased on 2.1 pp from 3.1% to 0.99% in FY2016.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 3.2x to 2.2x in FY2016. Debt dropped on 64.6% while cash surged on 967%.
Coromandel Engineering Company has short term refinancing risk: cash is only 6.4% of short term debt.
Valuation and dividends
Coromandel Engineering Company's trades at EV/EBITDA 19.9x and P/E 459.0x while industy averages are 17.8x and 21.9x.
Financial and operational results
Coromandel Engineering Company ($COROENGG) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,697 | 2,160 | 1,991 | 2,143 | 1,222 | -43.0% |
| EBITDA | -201 | 59 | 18 | 222 | 105 | -52.8% |
| Net Income | -215 | -54 | -89 | 11 | 4 | -64.1% |
Balance Sheet
|
|---|
| Cash | 10 | 5 | 8 | 2 | 16 | 967.4% |
| Short Term Debt | 417 | 430 | 676 | 707 | 250 | -64.6% |
| Long Term Debt | 260 | 420 | 326 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 78 | 84 | 77 | 6 | | |
Ratios
|
|---|
| Revenue growth | 50.6% | 27.3% | -7.9% | 7.6% | -43.0% | |
| EBITDA growth | -299.3% | -129.1% | -68.9% | 1,116.7% | -52.8% | |
|
|---|
| EBITDA Margin | -11.9% | 2.7% | 0.9% | 10.4% | 8.6% | -1.8% |
| Net Income Margin | -12.6% | -2.5% | -4.5% | 0.5% | 0.3% | -0.2% |
| CAPEX, % of revenue | 4.6% | 3.9% | 3.9% | 0.3% | | |
|
|---|
| ROIC | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% | -7.0% |
| ROE | | | | 3.1% | 1.0% | -2.1% |
| Net Debt/EBITDA | | 14.4x | 54.6x | 3.2x | 2.2x | -0.9x |
Peers in Construction & Engineering
Below you can find Coromandel Engineering Company benchmarking vs. other companies in Construction & Engineering 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | - |
| Welspun Projects ($WELPROJ) | 41.2% | -8.9% | -20.7% | 239.1% | - |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | -14.3% | 16.7% | 12.4% | 63.0% | - |
| Atlanta ($ATLANTA) | -47.6% | 115.1% | 28.1% | 50.2% | - |
| |
|---|
| Median (32 companies) | -0.1% | 6.7% | 7.1% | -0.0% | -8.2% |
|---|
| Coromandel Engineering Company ($COROENGG) | - | 27.3% | -7.9% | 7.6% | -43.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 36.9% | 35.9% | 32.4% | 31.5% | - |
| Arss Infrastructure Projects ($ARSSINFRA) | 14.0% | 13.9% | 22.0% | 31.3% | - |
| Reliance Industrial Infrastructure ($RIIL) | - | - | - | 30.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | - |
| |
|---|
| Median (36 companies) | 12.4% | 11.3% | 10.7% | 10.1% | 12.3% |
|---|
| Coromandel Engineering Company ($COROENGG) | -11.9% | 2.7% | 0.9% | 10.4% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | - |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | - |
| |
|---|
| Median (23 companies) | 7.7% | 8.6% | 6.9% | 3.2% | 1.7% |
|---|
| Coromandel Engineering Company ($COROENGG) | 4.6% | 3.9% | 3.9% | 0.3% | - |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Skipper ($SKIPPER) | 10.4% | 13.5% | 14.7% | 27.4% | - |
| Voltas ($VOLTAS) | 19.6% | 11.7% | 11.8% | 19.3% | - |
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | - |
| Itd Cementation India ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| Simplex Infrastructures ($SIMPLEXINF) | 10.7% | 8.7% | 8.9% | 10.7% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.5% | 6.3% | 6.6% | 5.4% |
|---|
| Coromandel Engineering Company ($COROENGG) | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | - |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | - |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | - |
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | - |
| |
|---|
| Median (30 companies) | 4.6x | 5.3x | 5.9x | 2.9x | 6.7x |
|---|
| Coromandel Engineering Company ($COROENGG) | - | 14.4x | 54.6x | 3.2x | 2.2x |
