Agro Tech Foods EBITDA decreased on 6.6% and EBITDA Margin decreased slightly on 0.76 pp from 8.0% to 7.3%
26-04-2016 • About Agro Tech Foods (
$ATFL) • By InTwits
Agro Tech Foods reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.3% in FY2016 vs. 8.0% in FY2015 vs. 7.6% in FY2012
- Agro Tech Foods has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's a lot of higher than industry average of 4.3%.
- CAPEX is quite volatile: ₹273m in FY2016, ₹261m in FY2015, ₹80m in FY2014, ₹252m in FY2013, ₹729m in FY2012
- The company has business model with average profitability: ROIC is 10.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Agro Tech Foods's Revenue increased on 3.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.8 pp from 42.6% to 22.8% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2014 at 9.2% and was declining since that time.
Net Income margin decreased slightly on 1.9 pp from 4.9% to 3.0% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 5.6% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Agro Tech Foods's CAPEX/Revenue was 5.7% in FY2016. Agro Tech Foods's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 5.9%. The company maintained rich investment policy and has spent a big chunk of EBITDA (78.1%) to CAPEX.
Return on investment
The company operates at low ROIC (10.2%) and ROE (7.1%). ROIC decreased on 3.8 pp from 13.9% to 10.2% in FY2016. ROE decreased on 5.3 pp from 12.4% to 7.1% in FY2016. ROIC stuck to a declining trend at -3.9 pp per annum in FY2012-FY2016. ROE declined at -2.9 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA surged on 1.3x from 0.3x to 1.6x in FY2016. Debt jumped on 270% while cash dropped on 33.9%. Net Debt/EBITDA stuck to a growing trend at 0.5x per annum in FY2012-FY2016.
Agro Tech Foods has short term refinancing risk: cash is only 6.3% of short term debt.
Management team
The company's CFO Arijit Datta has spent 5 years with the company.
Financial and operational results
Agro Tech Foods ($ATFL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,021 | 7,872 | 7,622 | 7,562 | 7,802 | 3.2% |
| EBITDA | 532 | 650 | 699 | 608 | 568 | -6.6% |
| Net Income | 363 | 419 | 426 | 369 | 232 | -37.2% |
Balance Sheet
|
|---|
| Cash | 407 | 106 | 59 | 91 | 60 | -33.9% |
| Short Term Debt | 0 | 0 | 150 | 259 | 957 | 269.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 290 | 472 | 480 | 424 | 443 | 4.6% |
Ratios
|
|---|
| Revenue growth | -2.3% | 12.1% | -3.2% | -0.8% | 3.2% | |
| EBITDA growth | 88.5% | 22.1% | 7.5% | -13.0% | -6.6% | |
|
|---|
| EBITDA Margin | 7.6% | 8.3% | 9.2% | 8.0% | 7.3% | -0.8% |
| Net Income Margin | 5.2% | 5.3% | 5.6% | 4.9% | 3.0% | -1.9% |
| CAPEX, % of revenue | 4.1% | 6.0% | 6.3% | 5.6% | 5.7% | 0.1% |
|
|---|
| ROIC | 24.0% | 25.3% | 21.2% | 13.9% | 10.2% | -3.8% |
| ROE | 18.8% | 18.5% | 16.2% | 12.4% | 7.1% | -5.3% |
| Net Debt/EBITDA | -0.8x | -0.2x | 0.1x | 0.3x | 1.6x | 1.3x |
Peers in Other Agricultural Products
Below we provide Agro Tech Foods benchmarking against other companies in Other Agricultural 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vikas Granaries ($VIKASGRAN) | -13.9% | 88.0% | -34.7% | 108.5% | - |
| Kaveri Seed Company ($KSCL) | 59.4% | 91.2% | 42.0% | 14.8% | - |
| Modi Naturals ($MODINATUR) | 51.2% | 16.2% | 8.3% | 11.5% | - |
| Anik Industries ($ANIKINDS) | 26.0% | -21.3% | 14.6% | 1.4% | - |
| Freshtrop Fruits ($FRSHTRP) | 14.7% | 43.8% | 29.1% | 0.0% | - |
| |
|---|
| Median (9 companies) | 51.2% | 35.2% | 16.2% | 0.0% | - |
|---|
| Agro Tech Foods ($ATFL) | - | 12.1% | -3.2% | -0.8% | 3.2% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Indrayani Biotech ($INDRANIB) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 20.7% | 19.6% | 21.9% | 26.7% | - |
| Avt Natural Products ($AVTNPL) | 37.6% | 30.8% | 25.9% | 17.5% | - |
| Freshtrop Fruits ($FRSHTRP) | 9.3% | 8.9% | 9.8% | 14.1% | - |
| Vikas Granaries ($VIKASGRAN) | 10.6% | 14.2% | 9.8% | 5.0% | - |
| Anik Industries ($ANIKINDS) | 3.3% | 3.1% | 1.3% | 4.1% | - |
| |
|---|
| Median (9 companies) | 4.7% | 8.9% | 9.8% | 4.1% | - |
|---|
| Agro Tech Foods ($ATFL) | 7.6% | 8.3% | 9.2% | 8.0% | 7.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 2.9% | 5.9% | 2.5% | 7.1% | - |
| Avt Natural Products ($AVTNPL) | 2.3% | 5.0% | 3.3% | 4.0% | - |
| Kohinoor Foods ($KOHINOOR) | 1.6% | 1.5% | 1.0% | 0.3% | - |
| |
|---|
| Median (3 companies) | 1.0% | 2.9% | 2.5% | 4.0% | - |
|---|
| Agro Tech Foods ($ATFL) | 4.1% | 6.0% | 6.3% | 5.6% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kaveri Seed Company ($KSCL) | 27.5% | 41.1% | 46.8% | 45.9% | - |
| Avt Natural Products ($AVTNPL) | 58.2% | 41.5% | 32.8% | 19.0% | - |
| Indrayani Biotech ($INDRANIB) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Kohinoor Foods ($KOHINOOR) | 3.1% | 8.8% | 10.3% | -1.3% | - |
| Himalya International ($HIMIN) | 9.4% | 10.2% | - | - | - |
| |
|---|
| Median (13 companies) | 8.3% | 8.9% | 21.5% | 9.5% | 0.0% |
|---|
| Agro Tech Foods ($ATFL) | 24.0% | 25.3% | 21.2% | 13.9% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kohinoor Foods ($KOHINOOR) | 19.2x | 7.8x | 6.1x | 296.6x | - |
| Unique Organics ($UNIQUEO) | - | 0.0x | 0.0x | 0.0x | - |
| Freshtrop Fruits ($FRSHTRP) | 3.3x | 2.5x | 0.0x | 0.0x | - |
| Modi Naturals ($MODINATUR) | 3.9x | 2.2x | - | 0.0x | - |
| Vikas Granaries ($VIKASGRAN) | 9.1x | 4.2x | 0.0x | 0.0x | - |
| |
|---|
| Median (9 companies) | 3.6x | 2.4x | 0.0x | 0.0x | - |
|---|
| Agro Tech Foods ($ATFL) | -0.8x | -0.2x | 0.1x | 0.3x | 1.6x |
