Mangalam Organics reports 29.1% revenue decline in FY2016

26-04-2016 • About Mangalam Organics ($MANORG) • By InTwits

Mangalam Organics reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: Mangalam Organics is a company in decline: FY2016 revenue growth was -29.1%, 5 years revenue CAGR was -2.3%.

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Mangalam Organics's Revenue dropped on 29.1%.

Net Income margin decreased on 7.9 pp from 1.8% to -6.1% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2014 at 2.1% and was declining since that time.

Financial and operational results

Mangalam Organics ($MANORG) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,202	2,095	2,317	2,391	1,696	-29.1%
EBITDA	135	135	197		44
Net Income	33	35	48	42	-103	-346.1%
Balance Sheet
Cash	6	43
Short Term Debt	448	324
Long Term Debt	61	43
Cash flow
Capex	75
Ratios
Revenue growth	15.5%	-4.9%	10.6%	3.2%	-29.1%
EBITDA growth	-41.2%	0.1%	45.7%
EBITDA Margin	6.1%	6.5%	8.5%		2.6%
Net Income Margin	1.5%	1.7%	2.1%	1.8%	-6.1%	-7.9%
CAPEX, % of revenue	3.4%
ROIC	10.9%	9.8%
ROE	7.9%	7.7%
Net Debt/EBITDA	3.7x	2.4x	0.0x		0.0x

Peers in Commodity Chemicals

Below we provide Mangalam Organics 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	FY2012	FY2013	FY2014	FY2015	FY2016
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 ($JINDPOLBBPH)	-17.2%	-6.3%	131.7%	46.9%	-
Median (37 companies)	19.9%	11.2%	11.5%	6.3%	-
Mangalam Organics ($MANORG)	-	-4.9%	10.6%	3.2%	-29.1%

Top companies by EBITDA margin, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Riddhi Siddhi Gluco Biols ($RIDDHI)	-	-	-	104.7%	-
Mysore Petro Chemicals ($MYSORPETRO)	-	-	-	47.1%	-
Aditya Birla Chemicals (India) ($ABCIL)	26.8%	27.1%	23.6%	21.9%	-
Indo Borax & Chemicals ($INDOBORAX)	-	-	-	21.3%	-
Chemfab Alkalis ($CHEMFALKAL)	22.3%	32.9%	24.2%	19.8%	-
Median (51 companies)	11.3%	8.4%	8.6%	6.6%	-

Top companies by CAPEX/Revenue, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Kanoria Chemicals & Industries ($KANORICHEM)	25.1%	6.0%	13.4%	40.3%	-
Aditya Birla Chemicals (India) ($ABCIL)	136.9%	24.2%	30.8%	15.0%	-
Aarti Industries ($AARTIIND)	8.0%	11.2%	11.0%	10.4%	-
Alkyl Amines Chemicals ($ALKYLAMINE)	5.1%	6.6%	5.9%	8.6%	-
Sukhjit Starch & Chemicals ($SUKHJITS)	15.7%	9.4%	5.4%	5.4%	-
Median (22 companies)	5.3%	6.6%	5.7%	3.2%	-

Top companies by ROIC, %

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Bodal Chemicals ($BODALCHEM)	-1.3%	3.3%	39.0%	38.3%	-
Elantas Beck India ($ELANTAS)	20.4%	33.9%	31.0%	36.6%	-
Alkyl Amines Chemicals ($ALKYLAMINE)	16.0%	18.7%	25.0%	23.7%	-
Aarti Industries ($AARTIIND)	15.9%	19.1%	17.2%	17.9%	-
Transpek Industry ($TRANSPEK)	-1.7%	14.2%	11.0%	17.8%	-
Median (60 companies)	9.0%	9.6%	9.3%	8.8%	-
Mangalam Organics ($MANORG)	10.9%	9.8%	-	-	-

Top companies by Net Debt / EBITDA

Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Iol Chemicals & Pharmaceuticals ($IOLCP)	5.8x	4.5x	3.7x	35.4x	-
India Glycols ($INDIAGLYCO)	4.8x	3.7x	8.5x	14.2x	-
Godrej Industries ($GODREJIND)	9.9x	5.7x	7.9x	10.7x	-
Kanoria Chemicals & Industries ($KANORICHEM)	5.2x	9.6x	3.5x	9.4x	-
Garware Polyester ($GARWARPOLY)	2.2x	3.8x	4.0x	5.2x	-
Median (38 companies)	2.6x	3.2x	1.4x	1.0x	-

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