Nocil reports 37.1% Net Income growth in 2016 while 1.6% Revenue decline
05-05-2016 • About Nocil (
$NOCIL) • By InTwits
Nocil reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 19.8% in FY2016 vs. 16.0% in FY2015 vs. 10.7% in FY2012
- EBITDA Margin is quite volatile: 19.8% in FY2016, 16.0% in FY2015, 10.6% in FY2014, 4.3% in FY2013, 10.7% in FY2012
- Nocil has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.3%. At the same time it's a lot of higher than industry average of 5.3%.
- CAPEX is quite volatile: ₹142m in FY2016, ₹90m in FY2015, ₹280m in FY2014, ₹921m in FY2013, ₹933m in FY2012
- The company has highly profitable business model: ROIC is 21.8%
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 decreased slightly on 1.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.8 pp from 16.0% to 19.8% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at 4.3% and was growing since that time.
Net Income margin increased on 3.1 pp from 7.9% to 11.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.0%. Nocil showed big decline in CAPEX/Revenue of 17.0 pp from 19.0% in FY2013 to 2.0% in FY2016. For the last three years the average CAPEX/Revenue was 2.7%. CAPEX as a % of Revenue stuck to a declining trend at -5.3 pp per annum in the last 5 years.
Return on investment
The company operates at high and attractive ROIC (21.8%) while ROE is a bit lower (17.7%). ROIC increased on 4.7 pp from 17.1% to 21.8% in FY2016. ROE increased on 3.3 pp from 14.4% to 17.7% in FY2016. During the last 5 years ROIC bottomed in FY2013 at 2.5% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 1.1x from 1.2x to 0.1x in FY2016. Debt dropped on 82.4% while cash surged on 125%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2013 at 6.5x and was declining since that time.
Nocil has no short term refinancing risk: cash is higher than short term debt (127.1%).
Financial and operational results
Nocil ($NOCIL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,768 | 4,854 | 5,936 | 7,190 | 7,078 | -1.6% |
| EBITDA | 509 | 211 | 626 | 1,150 | 1,399 | 21.7% |
| Net Income | 345 | 421 | 239 | 571 | 783 | 37.1% |
Balance Sheet
|
|---|
| Cash | 128 | 109 | 139 | 61 | 138 | 124.8% |
| Short Term Debt | 55 | 537 | 804 | 968 | 109 | -88.8% |
| Long Term Debt | 750 | 932 | 718 | 505 | 150 | -70.3% |
Cash flow
|
|---|
| Capex | 933 | 921 | 280 | 90 | 142 | 57.9% |
Ratios
|
|---|
| Revenue growth | 6.4% | 1.8% | 22.3% | 21.1% | -1.6% | |
| EBITDA growth | -3.8% | -58.7% | 197.4% | 83.6% | 21.7% | |
|
|---|
| EBITDA Margin | 10.7% | 4.3% | 10.6% | 16.0% | 19.8% | 3.8% |
| Net Income Margin | 7.2% | 8.7% | 4.0% | 7.9% | 11.1% | 3.1% |
| CAPEX, % of revenue | 19.6% | 19.0% | 4.7% | 1.2% | 2.0% | 0.8% |
|
|---|
| ROIC | 10.6% | 2.5% | 7.9% | 17.1% | 21.8% | 4.7% |
| ROE | 10.7% | 12.1% | 6.4% | 14.4% | 17.7% | 3.3% |
| Net Debt/EBITDA | 1.3x | 6.5x | 2.2x | 1.2x | 0.1x | -1.1x |
Peers in Specialty Chemicals
Below we provide Nocil benchmarking against other companies in Specialty Chemicals 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 |
|---|
| Kiri Industries ($KIRIINDUS) | 7.9% | -86.5% | 24.8% | 34.7% | - |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 14.1% | 4.7% | 19.5% | 30.0% | - |
| Keltech Energies ($KELENRG) | 60.2% | -13.4% | -0.4% | 24.4% | - |
| Dai-Ichi Karkaria ($DAICHI) | 20.7% | 31.4% | 45.4% | 22.8% | - |
| Nitta Gelatin India ($NITTAGELA) | 21.2% | 27.8% | -5.5% | 21.2% | - |
| |
|---|
| Median (27 companies) | 20.7% | 14.1% | 11.3% | 9.8% | 0.7% |
|---|
| Nocil ($NOCIL) | - | 1.8% | 22.3% | 21.1% | -1.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.8% | 22.7% | 24.9% | - |
| Indian Toners & Developers ($INDTONER) | - | - | - | 22.6% | - |
| Solar Industries India ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | - |
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | - |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| |
|---|
| Median (32 companies) | 10.6% | 12.8% | 10.6% | 10.5% | 15.3% |
|---|
| Nocil ($NOCIL) | 10.7% | 4.3% | 10.6% | 16.0% | 19.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Adi Finechem ($ADIFINCHM) | 7.3% | 4.8% | 12.6% | 16.9% | 9.0% |
| Anil ($ANILLTD) | - | 6.7% | 5.2% | 11.5% | - |
| Solar Industries India ($SOLARINDS) | 13.0% | 9.9% | 12.3% | 10.3% | - |
| Pidilite Industries ($PIDILITIND) | 5.2% | 2.9% | 4.4% | 8.5% | - |
| Oricon Enterprises ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| |
|---|
| Median (16 companies) | 4.9% | 4.5% | 4.3% | 5.2% | 9.0% |
|---|
| Nocil ($NOCIL) | 19.6% | 19.0% | 4.7% | 1.2% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 29.6% | 26.2% | 30.6% | 34.8% | - |
| Camlin Fine Sciences ($CAMLINFIN) | 11.1% | 17.8% | 24.2% | 29.5% | - |
| Pidilite Industries ($PIDILITIND) | 27.4% | 29.3% | 29.8% | 29.0% | - |
| Adi Finechem ($ADIFINCHM) | 30.6% | 29.8% | 46.4% | 26.3% | 20.6% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | - |
| |
|---|
| Median (35 companies) | 15.3% | 15.0% | 12.3% | 17.3% | 20.6% |
|---|
| Nocil ($NOCIL) | 10.6% | 2.5% | 7.9% | 17.1% | 21.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kiri Industries ($KIRIINDUS) | 8.2x | 31.3x | 10.6x | 7.7x | - |
| Jayant Agro-Organics ($JAYAGROGN) | 2.8x | 3.1x | 4.6x | 6.5x | - |
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | - |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | - |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | - |
| |
|---|
| Median (30 companies) | 1.5x | 1.5x | 1.7x | 0.0x | 0.0x |
|---|
| Nocil ($NOCIL) | 1.3x | 6.5x | 2.2x | 1.2x | 0.1x |
