Coromandel International reports 31.4% EBITDA decline in 2016 and 0.91% Revenue growth
27-04-2016 • About Coromandel International (
$COROMANDEL) • By InTwits
Coromandel International reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: 8.7% in FY2016 vs. 12.8% in FY2015 vs. 10.8% in FY2012
- The company has highly profitable business model: ROIC is 12.5%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 0.91%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.6 pp from 23.5% to 29.1% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 16.3% and was declining since that time.
Net Income margin decreased slightly on 0.55 pp from 5.0% to 4.4% in FY2016. During the last 5 years Net Income margin topped in FY2013 at 7.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Coromandel International had CAPEX/Revenue of 1.3%. Coromandel International's CAPEX/Revenue decreased on 3.1 pp from 4.4% in FY2013 to 1.3% in FY2016. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (12.5%) and ROE (15.6%). ROIC decreased on 8.0 pp from 20.5% to 12.5% in FY2016. ROE decreased on 2.3 pp from 17.9% to 15.6% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 3.2x. Net Debt / EBITDA surged on 1.0x from 2.0x to 2.9x in FY2016. Debt decreased slightly on 1.3% while cash dropped on 26.4%.
Coromandel International has short term refinancing risk: cash is only 8.1% of short term debt.
Valuation and dividends
Coromandel International's trades at EV/EBITDA 12.2x and P/E 18.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Coromandel International ($COROMANDEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 97,892 | 59,990 | 71,269 | 80,792 | 81,523 | 0.9% |
| EBITDA | 10,544 | 9,758 | 9,982 | 10,380 | 7,124 | -31.4% |
| Net Income | 6,388 | 4,320 | 3,565 | 4,018 | 3,610 | -10.2% |
Balance Sheet
|
|---|
| Cash | 9,847 | 2,109 | 4,195 | 2,440 | 1,797 | -26.4% |
| Short Term Debt | 22,897 | 18,490 | 15,760 | 22,210 | 22,287 | 0.3% |
| Long Term Debt | 5,863 | 10,969 | 2,669 | 668 | 306 | -54.3% |
Cash flow
|
|---|
| Capex | | 2,627 | 1,135 | 948 | 1,061 | 11.9% |
Ratios
|
|---|
| Revenue growth | 199.6% | -38.7% | 18.8% | 13.4% | 0.9% | |
| EBITDA growth | -5.3% | -7.5% | 2.3% | 4.0% | -31.4% | |
|
|---|
| EBITDA Margin | 10.8% | 16.3% | 14.0% | 12.8% | 8.7% | -4.1% |
| Net Income Margin | 6.5% | 7.2% | 5.0% | 5.0% | 4.4% | -0.5% |
| CAPEX, % of revenue | | 4.4% | 1.6% | 1.2% | 1.3% | 0.1% |
|
|---|
| ROIC | 22.2% | 16.7% | 18.3% | 20.5% | 12.5% | -8.0% |
| ROE | 29.3% | 18.8% | 15.9% | 17.9% | 15.6% | -2.3% |
| Net Debt/EBITDA | 1.8x | 2.8x | 1.4x | 2.0x | 2.9x | 1.0x |
Peers in Fertilizers
Below we provide Coromandel International benchmarking against other companies in Fertilizers 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 |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 32.6% | 8.8% | 8.6% | 9.3% | - |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 11.5% | 17.9% | -13.4% | -1.6% | - |
| Basant Agro Tech (India) ($BASANTGL) | 63.9% | 5.3% | 7.7% | -2.4% | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 41.2% | -29.1% | -14.7% | -15.2% | - |
| Rama Phosphates ($RAMAPHO) | 56.4% | 11.4% | -13.9% | -25.0% | - |
| |
|---|
| Median (5 companies) | 41.2% | 8.8% | -13.4% | -2.4% | - |
|---|
| Coromandel International ($COROMANDEL) | - | -38.7% | 18.8% | 13.4% | 0.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 22.4% | 13.6% | 12.1% | 12.3% | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 11.0% | 6.8% | 9.2% | 10.5% | - |
| Basant Agro Tech (India) ($BASANTGL) | 8.7% | 9.4% | 8.6% | 9.1% | - |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 13.2% | 10.7% | 10.6% | 8.2% | - |
| Rama Phosphates ($RAMAPHO) | 11.2% | 7.7% | 0.2% | 0.1% | - |
| |
|---|
| Median (5 companies) | 11.2% | 9.4% | 9.2% | 9.1% | - |
|---|
| Coromandel International ($COROMANDEL) | 10.8% | 16.3% | 14.0% | 12.8% | 8.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 7.7% | 6.6% | 5.6% | 2.6% | - |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 1.6% | 1.2% | 1.7% | 2.0% | - |
| |
|---|
| Median (2 companies) | 1.8% | 4.3% | 3.6% | 2.3% | - |
|---|
| Coromandel International ($COROMANDEL) | - | 4.4% | 1.6% | 1.2% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 27.1% | 14.2% | 9.2% | 10.2% | - |
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 13.6% | 9.3% | 9.2% | 8.6% | - |
| Kothari Industrial Corporation ($KOTIC) | - | -5.5% | - | - | - |
| Teesta Agro Industries ($TEEAI) | - | - | - | - | - |
| Rama Phosphates ($RAMAPHO) | 40.0% | 23.5% | - | - | - |
| |
|---|
| Median (7 companies) | 20.1% | 11.1% | 9.2% | 9.4% | - |
|---|
| Coromandel International ($COROMANDEL) | 22.2% | 16.7% | 18.3% | 20.5% | 12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 3.3x | 5.4x | 4.5x | 4.5x | - |
| Gujarat State Fertilizers & Chemicals ($GSFC) | -0.2x | 1.6x | 0.6x | 0.6x | - |
| Basant Agro Tech (India) ($BASANTGL) | 3.9x | 3.8x | 0.0x | 0.0x | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 2.4x | 9.0x | 5.3x | 0.0x | - |
| Rama Phosphates ($RAMAPHO) | 0.8x | 1.2x | 0.0x | 0.0x | - |
| |
|---|
| Median (5 companies) | 2.4x | 3.8x | 0.6x | 0.0x | - |
|---|
| Coromandel International ($COROMANDEL) | 1.8x | 2.8x | 1.4x | 2.0x | 2.9x |
