Astec Lifesciences Limited reports 230% Net Income decline in 2016 and 11.3 pp EBITDA Margin decline from 20.3% to 9.1%
05-05-2016 • About Astec Lifesciences Limited (
$ASTEC) • By InTwits
Astec Lifesciences Limited reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Astec Lifesciences Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.7%. At the same time it's a lot of higher than industry average of 5.4%.
- CAPEX is quite volatile: ₹259m in FY2016, ₹201m in FY2015, ₹190m in FY2014, ₹260m in FY2013, ₹468m in FY2012
- The company has potentially unprofitable business model: ROIC is 4.0%
- It operates with high leverage: Net Debt/EBITDA is 5.3x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Astec Lifesciences Limited's Revenue decreased on 2.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 11.3 pp from 20.3% to 9.1% in FY2016. During the last 5 years EBITDA Margin topped in FY2015 at 20.3%.
Net Income margin dropped on 12.9 pp from 5.5% to -7.4% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2015 at 5.5%.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 10.0% in FY2016. CAPEX/Revenue decreased on 4.9 pp from 14.9% in FY2013 to 10.0% in FY2016. For the last three years the average CAPEX/Revenue was 8.9%. Battling declining revenue the company made large investments to CAPEX (110% of EBITDA) but that didn't help at least in this year. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 7.5%.
Return on investment
The company operates at low but positive ROIC (4.0%) and negative ROE (-15.2%). ROIC dropped on 15.1 pp from 19.1% to 4.0% in FY2016. ROE dropped on 27.1 pp from 11.9% to -15.2% in FY2016. During FY2012-FY2016 ROIC topped in FY2015 at 19.1%. During the last 5 years ROE topped in FY2015 at 11.9%.
Leverage (Debt)
Debt level is 5.3x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA jumped on 3.5x from 1.7x to 5.3x in FY2016. Debt jumped on 34.7% while cash jumped on 233%. During the last 5 years Net Debt/EBITDA bottomed in FY2015 at 1.7x.
Astec Lifesciences Limited has short term refinancing risk: cash is only 1.9% of short term debt.
Financial and operational results
Astec Lifesciences Limited ($ASTEC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,122 | 1,748 | 2,070 | 2,669 | 2,593 | -2.8% |
| EBITDA | 174 | 292 | 354 | 543 | 236 | -56.6% |
| Net Income | 14 | 60 | 87 | 148 | -192 | -229.7% |
Balance Sheet
|
|---|
| Cash | 9 | 20 | 8 | 7 | 22 | 232.9% |
| Short Term Debt | 601 | 514 | 646 | 805 | 1,183 | 47.0% |
| Long Term Debt | 118 | 215 | 181 | 132 | 79 | -40.1% |
Cash flow
|
|---|
| Capex | 468 | 260 | 190 | 201 | 259 | 28.9% |
Ratios
|
|---|
| Revenue growth | 2.6% | 55.7% | 18.4% | 28.9% | -2.8% | |
| EBITDA growth | 9.7% | 67.3% | 21.4% | 53.2% | -56.6% | |
|
|---|
| EBITDA Margin | 15.5% | 16.7% | 17.1% | 20.3% | 9.1% | -11.3% |
| Net Income Margin | 1.2% | 3.4% | 4.2% | 5.5% | -7.4% | -12.9% |
| CAPEX, % of revenue | 41.7% | 14.9% | 9.2% | 7.5% | 10.0% | 2.5% |
|
|---|
| ROIC | 5.6% | 9.7% | 10.7% | 19.1% | 4.0% | -15.1% |
| ROE | 1.4% | 5.8% | 7.9% | 11.9% | -15.2% | -27.1% |
| Net Debt/EBITDA | 4.1x | 2.4x | 2.3x | 1.7x | 5.3x | 3.5x |
Peers in Agrochemicals
Below you can find Astec Lifesciences Limited 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 |
|---|
| 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% | - |
| Rallis India ($RALLIS) | - | 14.4% | 19.8% | 4.3% | -10.6% |
| |
|---|
| Median (7 companies) | 15.6% | 18.2% | 19.8% | 11.6% | -10.6% |
|---|
| Astec Lifesciences Limited ($ASTEC) | - | 55.7% | 18.4% | 28.9% | -2.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Monsanto India ($MONSANTO) | 15.1% | 16.4% | 7.3% | 20.9% | - |
| P.I.Industries ($PIIND) | 17.0% | 15.8% | 18.4% | 19.6% | - |
| Rallis India ($RALLIS) | 16.2% | 14.7% | 15.2% | 15.4% | 14.9% |
| Jubilant Industries ($JUBLINDS) | 1.8% | 1.6% | - | 15.3% | - |
| Excel Industries ($EXCELINDUS) | 8.5% | 10.9% | 9.8% | 15.0% | - |
| |
|---|
| Median (8 companies) | 11.0% | 11.3% | 10.2% | 15.2% | 14.9% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 15.5% | 16.7% | 17.1% | 20.3% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| P.I.Industries ($PIIND) | 13.4% | 13.2% | 4.0% | 8.7% | - |
| Excel Industries ($EXCELINDUS) | 7.6% | 5.7% | 8.5% | 6.8% | - |
| Insecticides (India) ($INSECTICID) | 10.7% | 8.1% | 3.9% | 3.5% | - |
| Rallis India ($RALLIS) | 4.5% | 3.2% | 3.4% | 3.3% | 4.6% |
| Jubilant Industries ($JUBLINDS) | 1.7% | - | - | 2.6% | - |
| |
|---|
| Median (6 companies) | 6.0% | 5.7% | 3.9% | 3.4% | 4.6% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 41.7% | 14.9% | 9.2% | 7.5% | 10.0% |
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% | - |
| Rallis India ($RALLIS) | 26.3% | 25.3% | 28.3% | 25.4% | 19.6% |
| Excel Industries ($EXCELINDUS) | 8.5% | 14.2% | 11.9% | 20.3% | - |
| Insecticides (India) ($INSECTICID) | 19.2% | 15.6% | 15.7% | 16.8% | - |
| |
|---|
| Median (9 companies) | 8.5% | 14.2% | 15.7% | 25.4% | 19.6% |
|---|
| Astec Lifesciences Limited ($ASTEC) | 5.6% | 9.7% | 10.7% | 19.1% | 4.0% |
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 | - |
| Excel Industries ($EXCELINDUS) | 2.7x | 1.6x | 2.3x | 1.3x | - |
| Rallis India ($RALLIS) | 0.7x | 0.1x | 0.2x | 0.4x | 0.3x |
| P.I.Industries ($PIIND) | 1.6x | 1.2x | 0.3x | 0.2x | - |
| |
|---|
| Median (8 companies) | 2.7x | 3.0x | 0.2x | 0.3x | 0.3x |
|---|
| Astec Lifesciences Limited ($ASTEC) | 4.1x | 2.4x | 2.3x | 1.7x | 5.3x |
