Tata Metaliks CAPEX surged on 65.7% while Revenue decreased on 8.2%
28-04-2016 • About Tata Metaliks (
$TATAMETALI) • By InTwits
Tata Metaliks reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 16.8% in FY2016 vs. 14.6% in FY2015 vs. -9.6% in FY2012
- EBITDA Margin is quite volatile: 16.8% in FY2016, 14.6% in FY2015, 6.8% in FY2014, 0.9% in FY2013, -9.6% in FY2012
- Tata Metaliks has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 1.7%
- CAPEX is quite volatile: ₹794m in FY2016, ₹479m in FY2015, ₹199m in FY2014, ₹1,166m in FY2013, ₹554m in FY2012
- The company has highly profitable business model: ROIC is 42.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tata Metaliks's Revenue decreased on 8.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 14.6% to 16.8% in FY2016. EBITDA Margin followed a growing trend at 6.7 pp per annum in the last 5 years.
Net Income margin increased slightly on 1.7 pp from 7.7% to 9.4% in FY2016. Net Income margin followed a growing trend at 5.4 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.1% in FY2016. CAPEX/Revenue decreased on 5.6 pp from 11.7% in FY2013 to 6.1% in FY2016. For the last three years the average CAPEX/Revenue was 3.6%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA increased on 0.1x from 1.3x to 1.4x in FY2016. Debt surged on 11.2% while cash dropped on 50.8%.
Tata Metaliks has short term refinancing risk: cash is only 0.6% of short term debt.
Management team
The company's CFO is Subhra Sengupta. Subhra Sengupta has 7 years tenure at the company.
Financial and operational results
Tata Metaliks ($TATAMETALI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 12,262 | 9,927 | 14,359 | 14,176 | 13,011 | -8.2% |
| EBITDA | -1,174 | 86 | 970 | 2,074 | 2,191 | 5.6% |
| Net Income | -1,135 | -871 | 95 | 1,091 | 1,228 | 12.5% |
Balance Sheet
|
|---|
| Cash | 808 | 78 | 200 | 31 | 15 | -50.8% |
| Short Term Debt | 4,107 | 2,543 | 1,404 | 1,572 | 2,377 | 51.2% |
| Long Term Debt | 1,306 | 1,810 | 1,251 | 1,222 | 729 | -40.4% |
Cash flow
|
|---|
| Capex | 554 | 1,166 | 199 | 479 | 794 | 65.7% |
Ratios
|
|---|
| Revenue growth | -7.0% | -19.0% | 44.6% | -1.3% | -8.2% | |
| EBITDA growth | -375.2% | -107.4% | 1,023.5% | 113.9% | 5.6% | |
|
|---|
| EBITDA Margin | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% | 2.2% |
| Net Income Margin | -9.3% | -8.8% | 0.7% | 7.7% | 9.4% | 1.7% |
| CAPEX, % of revenue | 4.5% | 11.7% | 1.4% | 3.4% | 6.1% | 2.7% |
|
|---|
| ROIC | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% | -14.8% |
| Net Debt/EBITDA | | 49.5x | 2.5x | 1.3x | 1.4x | 0.1x |
Peers in Iron & Steel/Interm.Products
Below you can find Tata Metaliks benchmarking vs. other companies in Iron & Steel/Interm.Products 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 |
|---|
| Uttam Galva Steels ($UTTAMSTL) | 12.0% | 11.0% | -13.2% | 55.0% | - |
| Modern Steels ($MDRNSTL) | -2.6% | -22.7% | 0.7% | 20.3% | - |
| Maithan Alloys ($MAITHANALL) | -1.5% | 59.1% | 1.1% | 15.0% | - |
| Pennar Industries ($PENIND) | 0.9% | -8.5% | 0.5% | 12.7% | - |
| Vaswani Industries ($VASWANI) | 51.4% | -2.1% | 5.6% | 12.6% | - |
| |
|---|
| Median (32 companies) | 13.3% | 8.8% | 2.8% | -0.8% | -19.5% |
|---|
| Tata Metaliks ($TATAMETALI) | - | -19.0% | 44.6% | -1.3% | -8.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 37.5% | 30.5% | 28.1% | 29.8% | - |
| Sarda Energy & Minerals ($SARDAEN) | 16.3% | 21.5% | 21.3% | 21.5% | - |
| Bhushan Steel ($BHUSANSTL) | 31.2% | 32.3% | 28.1% | 20.4% | - |
| Jsw Steel ($JSWSTEEL) | 17.8% | 17.1% | 17.9% | 17.7% | - |
| Jai Corp ($JAICORPLTD) | 14.1% | 16.3% | 16.0% | 12.7% | - |
| |
|---|
| Median (29 companies) | 9.5% | 9.2% | 7.4% | 7.3% | 0.0% |
|---|
| Tata Metaliks ($TATAMETALI) | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 34.2% | 47.6% | 69.6% | 26.4% | - |
| Jayaswal Neco Industries ($JAYNECOIND) | 20.4% | 44.0% | 31.1% | 17.3% | - |
| Steel Authority Of India ($SAIL) | 20.9% | 20.7% | 19.3% | 16.9% | 17.3% |
| Bhushan Steel ($BHUSANSTL) | 47.2% | 44.0% | 50.4% | 16.2% | - |
| Jsw Steel ($JSWSTEEL) | 11.9% | 14.7% | 11.3% | 12.7% | - |
| |
|---|
| Median (17 companies) | 9.7% | 10.4% | 7.7% | 5.3% | 13.4% |
|---|
| Tata Metaliks ($TATAMETALI) | 4.5% | 11.7% | 1.4% | 3.4% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pennar Industries ($PENIND) | 26.8% | 18.4% | 12.3% | 15.7% | - |
| Maithan Alloys ($MAITHANALL) | 16.3% | 15.1% | 5.5% | 15.3% | - |
| Kirloskar Ferrous Industries ($KIRLFER) | 19.1% | 16.8% | 12.4% | 14.7% | - |
| Gallantt Metal ($GALLANTT) | 8.7% | 11.7% | 8.5% | 11.7% | - |
| Sunflag Iron & Steel Co ($SUNFLAG) | 7.2% | 5.6% | 8.3% | 11.2% | - |
| |
|---|
| Median (40 companies) | 7.2% | 5.7% | 5.5% | 4.6% | -2.5% |
|---|
| Tata Metaliks ($TATAMETALI) | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Visa Steel ($VISASTEEL) | 20.1x | - | 24.4x | 187.1x | - |
| Ismt ($ISMTLTD) | 5.3x | 9.8x | 19.9x | 48.3x | - |
| Kic Metaliks ($KAJARIR) | 9.2x | 3.0x | 18.2x | 19.8x | - |
| Bhushan Steel ($BHUSANSTL) | 6.3x | 8.6x | 12.9x | 17.7x | - |
| Prakash Industries ($PRAKASH) | 2.5x | 2.8x | 2.5x | 11.9x | - |
| |
|---|
| Median (26 companies) | 4.5x | 4.3x | 3.4x | 2.2x | 9.4x |
|---|
| Tata Metaliks ($TATAMETALI) | - | 49.5x | 2.5x | 1.3x | 1.4x |
