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Sical Logistics reports 28.7% EBITDA growth in 2016 and 2.8 pp EBITDA Margin growth from 10.1% to 12.9%

03-05-2016 • About Sical Logistics ($SICAL) • By InTwits

Sical Logistics reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Sical Logistics has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.4%. At the same time it's in pair with industry average of 18.8%
  • CAPEX is quite volatile: ₹283m in FY2016, ₹180m in FY2015, ₹947m in FY2014, ₹171m in FY2013, ₹893m in FY2012
  • The company has potentially unprofitable business model: ROIC is 3.8%
  • It operates with high leverage: Net Debt/EBITDA is 8.9x while industry average is 19.3x
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 0.96%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.8 pp from 15.9% to 18.7% in FY2016.

Net Income margin showed almost no change in FY2016.

Investments (CAPEX, working capital and M&A)


The company's CAPEX/Revenue was 21.5% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 16.9%. Sical Logistics maintained rich investment policy and has spent a lot to CAPEX (166% of EBITDA).

Return on investment


The company operates at low ROIC (3.8%) and ROE (3.1%). ROIC increased slightly on 1.2 pp from 2.6% to 3.8% in FY2016. ROE decreased slightly on 0.58 pp from 3.7% to 3.1% in FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is 8.9x and Debt / EBITDA is 9.2x. Net Debt / EBITDA dropped on 0.9x from 9.9x to 8.9x in FY2016. Debt jumped on 16.8% while cash surged on 31.5%. Net Debt/EBITDA stuck to a growing trend at 0.8x per annum in the last 5 years.

Sical Logistics has short term refinancing risk: cash is only 12.6% of short term debt.

Financial and operational results


Sical Logistics ($SICAL) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue7,7967,6078,4208,2738,3521.0%
EBITDA8089311,0068391,08128.7%
Net Income1567095163140-14.0%
Balance Sheet
Cash5311,06118422529631.5%
Short Term Debt1,0852,0741,8852,3172,3471.3%
Long Term Debt4,5815,7756,4086,2107,61522.6%
Cash flow
Capex1,5161,6628551,5791,79713.8%
Ratios
Revenue growth1.3%-2.4%10.7%-1.7%1.0%
EBITDA growth-6,021.4%15.2%8.0%-16.6%28.7%

EBITDA Margin10.4%12.2%11.9%10.1%12.9%2.8%
Net Income Margin2.0%0.9%1.1%2.0%1.7%-0.3%
CAPEX, % of revenue19.4%21.9%10.2%19.1%21.5%2.4%

ROIC4.1%4.3%4.2%2.6%3.8%1.2%
ROE3.8%1.6%2.2%3.7%3.1%-0.6%
Net Debt/EBITDA6.4x7.3x8.1x9.9x8.9x-0.9x

Peers in Transportation - Logistics


Below we provide Sical Logistics benchmarking against other companies in Transportation - Logistics 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  FY2012 FY2013 FY2014 FY2015 FY2016
Snowman Logistics ($SNOWMAN)-85.2%34.9%32.3%18.3%
Gati ($GATI)-6.5%--0.5%
Gateway Distriparks ($GDL)-16.1%6.2%9.7%-5.4%
 
Median (3 companies)28.7%12.0%6.2%9.7%0.5%
Sical Logistics ($SICAL)--2.4%10.7%-1.7%1.0%


Top companies by EBITDA margin, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gateway Distriparks ($GDL)30.4%25.6%25.4%29.4%24.3%
Snowman Logistics ($SNOWMAN)25.7%22.8%26.0%23.2%21.1%
Gati ($GATI)6.7%6.5%-8.6%8.0%
 
Median (3 companies)25.7%19.2%25.4%16.5%21.1%
Sical Logistics ($SICAL)10.4%12.2%11.9%10.1%12.9%


Top companies by CAPEX/Revenue, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Snowman Logistics ($SNOWMAN)46.2%100.1%76.9%46.9%58.8%
Gateway Distriparks ($GDL)13.7%25.1%19.6%14.0%10.8%
Gati ($GATI)-3.1%-7.4%2.5%
 
Median (3 companies)46.2%31.9%19.6%10.7%10.8%
Sical Logistics ($SICAL)19.4%21.9%10.2%19.1%21.5%


Top companies by ROIC, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gateway Distriparks ($GDL)15.3%13.0%11.7%15.6%11.8%
Gati ($GATI)4.8%4.8%0.0%8.3%7.8%
Snowman Logistics ($SNOWMAN)9.4%10.0%8.1%5.2%3.9%
 
Median (3 companies)9.3%7.4%4.0%6.8%7.8%
Sical Logistics ($SICAL)4.1%4.3%4.2%2.6%3.8%


Top companies by Net Debt / EBITDA

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Gati ($GATI)4.1x5.2x-2.9x3.5x
Snowman Logistics ($SNOWMAN)-0.8x3.4x3.3x0.1x2.5x
Gateway Distriparks ($GDL)0.2x0.7x1.0x0.4x0.8x
 
Median (3 companies)2.1x4.3x2.1x1.7x2.5x
Sical Logistics ($SICAL)6.4x7.3x8.1x9.9x8.9x