Rallis India reports 13.4% EBITDA decline in 2016 and almost no change in EBITDA Margin of 14.9%
26-04-2016 • About Rallis India (
$RALLIS) • By InTwits
Rallis India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 14.9% in FY2016 vs. 15.4% in FY2015 vs. 16.2% in FY2012
- Rallis India has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 5.1%
- CAPEX is quite volatile: ₹304m in FY2016, ₹200m in FY2015, ₹1,775m in FY2014, ₹1,748m in FY2013, ₹974m in FY2012
- The company has highly profitable business model: ROIC is 19.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Rallis India's Revenue dropped on 10.6%. EBITDA Margin showed almost no change in FY2016.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 0.25 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Rallis India had CAPEX/Revenue of 4.6%. Rallis India showed small growth in CAPEX/Revenue of 1.4 pp from 3.2% in FY2013 to 4.6% in FY2016. Average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at good ROIC (19.6%) and ROE (16.7%). ROIC decreased on 5.7 pp from 25.4% to 19.6% in FY2016. ROE decreased on 3.8 pp from 20.5% to 16.7% in FY2016. During FY2012-FY2016 ROE topped in FY2014 at 22.7% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.4x. Net Debt / EBITDA decreased on 0.031x from 0.4x to 0.3x in FY2016. Debt dropped on 18.8% while cash increased on 7.2%.
Rallis India has short term refinancing risk: cash is only 12.1% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 15.7x and P/E 26.2x while industy averages are 17.8x and 21.9x. Rallis India's EV/(EBITDA-CAPEX) is 22.7x with the industry average at 22.8x.
Management team
Rallis India's CEO is Veeramani Shankar. Veeramani Shankar has 13 years tenure with the company.
Financial and operational results
Rallis India ($RALLIS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12,749 | 14,582 | 17,466 | 18,218 | 16,279 | -10.6% |
| EBITDA | 2,065 | 2,140 | 2,650 | 2,808 | 2,433 | -13.4% |
| Net Income | 992 | 1,190 | 1,519 | 1,572 | 1,430 | -9.0% |
Balance Sheet
|
|---|
| Cash | 112 | 258 | 89 | 72 | 77 | 7.2% |
| Short Term Debt | 650 | 433 | 484 | 837 | 636 | -24.0% |
| Long Term Debt | 856 | 107 | 261 | 268 | 262 | -2.3% |
Cash flow
|
|---|
| Capex | 570 | 465 | 591 | 605 | 748 | 23.6% |
Ratios
|
|---|
| Revenue growth | 17.4% | 14.4% | 19.8% | 4.3% | -10.6% | |
| EBITDA growth | 4.7% | 3.6% | 23.8% | 6.0% | -13.4% | |
|
|---|
| EBITDA Margin | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% | -0.5% |
| Net Income Margin | 7.8% | 8.2% | 8.7% | 8.6% | 8.8% | 0.2% |
| CAPEX, % of revenue | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% | 1.3% |
|
|---|
| ROIC | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% | -5.7% |
| ROE | 18.8% | 20.3% | 22.7% | 20.5% | 16.7% | -3.8% |
| Net Debt/EBITDA | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x | -0.0x |
Peers in Agrochemicals
Below you can find Rallis India benchmarking vs. other companies in Agrochemicals 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 |
|---|
| Astec Lifesciences Limited ($ASTEC) | 2.6% | 55.7% | 18.4% | 28.9% | - |
| Bhagiradha Chemicals & Industries ($BHAGCHEM) | 15.2% | 113.6% | 18.4% | 25.9% | - |
| P.I.Industries ($PIIND) | 22.2% | 31.0% | 38.9% | 21.6% | - |
| Excel Industries ($EXCELINDUS) | 14.7% | 21.7% | 8.3% | 15.8% | - |
| Insecticides (India) ($INSECTICID) | 15.9% | 18.2% | 40.1% | 11.6% | - |
| |
|---|
| Median (7 companies) | 15.2% | 21.7% | 18.4% | 15.8% | - |
|---|
| Rallis India ($RALLIS) | - | 14.4% | 19.8% | 4.3% | -10.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | - |
| Astec Lifesciences Limited ($ASTEC) | 15.5% | 16.7% | 17.1% | 20.3% | - |
| P.I.Industries ($PIIND) | 17.0% | 15.8% | 18.4% | 19.6% | - |
| Jubilant Industries ($JUBLINDS) | 1.8% | 1.6% | - | 15.3% | - |
| Excel Industries ($EXCELINDUS) | 8.5% | 10.9% | 9.8% | 15.0% | - |
| |
|---|
| Median (8 companies) | 11.0% | 11.3% | 10.2% | 15.2% | - |
|---|
| Rallis India ($RALLIS) | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 13.4% | 13.2% | 4.0% | 8.7% | - |
| Astec Lifesciences Limited ($ASTEC) | 41.7% | 14.9% | 9.2% | 7.5% | - |
| Excel Industries ($EXCELINDUS) | 7.6% | 5.7% | 8.5% | 6.8% | - |
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | - |
| Jubilant Industries ($JUBLINDS) | 1.7% | - | - | 2.6% | - |
| |
|---|
| Median (6 companies) | 9.1% | 8.1% | 4.0% | 5.1% | - |
|---|
| Rallis India ($RALLIS) | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 23.9% | 22.5% | 31.3% | 34.0% | - |
| Monsanto India ($MONSANTO) | 12.4% | 15.3% | 7.8% | 29.2% | - |
| Excel Industries ($EXCELINDUS) | 8.5% | 14.2% | 11.9% | 20.3% | - |
| Astec Lifesciences Limited ($ASTEC) | 5.6% | 9.7% | 10.7% | 19.1% | - |
| Insecticides (India) ($INSECTICID) | 19.2% | 15.6% | 15.7% | 16.8% | - |
| |
|---|
| Median (9 companies) | 6.4% | 9.7% | 11.9% | 20.3% | - |
|---|
| Rallis India ($RALLIS) | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Insecticides (India) ($INSECTICID) | 2.7x | 3.0x | 2.7x | 2.8x | - |
| Jubilant Industries ($JUBLINDS) | 12.1x | 11.5x | - | 2.5x | - |
| Astec Lifesciences Limited ($ASTEC) | 4.1x | 2.4x | 2.3x | 1.7x | - |
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | - |
| P.I.Industries ($PIIND) | 1.6x | 1.2x | 0.3x | 0.2x | - |
| |
|---|
| Median (8 companies) | 3.4x | 3.0x | 0.3x | 0.8x | - |
|---|
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
