Nitta Gelatin India EBITDA jumped on 55.5% and EBITDA Margin increased on 3.7 pp from 6.5% to 10.2%

06-05-2016 • About Nitta Gelatin India ($NITTAGELA) • By InTwits

Nitta Gelatin India reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is quite volatile: 10.2% in FY2016, 6.5% in FY2015, 6.1% in FY2014, 13.8% in FY2013, 9.0% in FY2012.

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Nitta Gelatin India's Revenue decreased slightly on 0.52%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 6.5% to 10.2% in FY2016.

Net Income margin increased on 3.5 pp from -0.41% to 3.1% in FY2016.

Management team

The company's CFO P Sahasranaman has spent 4 years with the company.

Financial and operational results

Nitta Gelatin India ($NITTAGELA) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	2,397	3,062	2,892	3,505	3,487	-0.5%
EBITDA	217	424	178	229	356	55.5%
Net Income	47	107	-61	-14	107
Balance Sheet
Cash	14	21	14
Short Term Debt	384	416	463
Long Term Debt	215	156	221
Cash flow
Capex	210	140	247
Ratios
Revenue growth	21.2%	27.8%	-5.5%	21.2%	-0.5%
EBITDA growth	82.9%	95.5%	-58.1%	28.7%	55.5%

EBITDA Margin	9.0%	13.8%	6.1%	6.5%	10.2%	3.7%
Net Income Margin	2.0%	3.5%	-2.1%	-0.4%	3.1%	3.5%
CAPEX, % of revenue	8.8%	4.6%	8.5%

ROIC	7.2%	14.8%	0.7%
ROE	4.5%	9.9%	-5.5%
Net Debt/EBITDA	2.7x	1.3x	3.8x	0.0x	0.0x

Peers in Specialty Chemicals

Below we provide Nitta Gelatin India 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%	-
Nocil ($NOCIL)	-	1.8%	22.3%	21.1%	-1.6%
Median (27 companies)	19.8%	11.4%	13.7%	9.8%	-0.4%
Nitta Gelatin India ($NITTAGELA)	-	27.8%	-5.5%	21.2%	-0.5%

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 ($ULTRAMAR)	18.0%	15.5%	17.4%	17.2%	-
Median (32 companies)	10.7%	11.2%	10.6%	10.8%	17.5%
Nitta Gelatin India ($NITTAGELA)	9.0%	13.8%	6.1%	6.5%	10.2%

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 (17 companies)	4.9%	4.7%	4.3%	5.1%	5.5%

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 ($ULTRAMAR)	20.0%	16.3%	20.8%	25.7%	-
Median (35 companies)	15.3%	15.0%	12.3%	17.1%	21.2%
Nitta Gelatin India ($NITTAGELA)	7.2%	14.8%	0.7%	-	-

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 ($SUDARSCHEM)	2.4x	5.1x	3.2x	3.2x	-
Median (30 companies)	1.4x	1.7x	1.7x	0.0x	0.0x
Nitta Gelatin India ($NITTAGELA)	2.7x	1.3x	3.8x	0.0x	0.0x

Nitta Gelatin India stock price chart

Nitta Gelatin India financials

mln.	FY2010	FY2011	FY2012

Revenue	4,181	1,977	2,397
EBITDA	367.6	118.6	216.8
Net income	252.1	16.858	46.908
CAPEX	228.4	421.8	210.2
Debt	2.628	471.7	598.8
Cash	20.022	10.575	13.548

About Nitta Gelatin India

Nitta Gelatin India Limited engages in the manufacture and sale of gelatin, ossein, di calcium phosphate (DCP), and collagen peptide primarily in India. The company offers gelatin, an ingredient used in the drug delivery systems, such as two piece hard capsules, soft capsules, tablets, coated tablets, mini, micro capsules, etc.; and in the edibles comprising confectionery, gelatin desserts, dairy products, and meat products, and beverages and juices. It also provides collagen peptide, a hydrolyzed form of collagen, which is a fibrous protein present in the extracellular matrix of living cells for application in healthcare, personal care, and food products. In addition, it manufactures ossein, which is used for the production of gelatin; and produces and supplies DCP to poultry farms and animal feed manufacturers. Further, it provides Chitosan, a polysaccharide that is used in various applications, such as pharmaceutical, medical, cosmetic, food and agriculture, veterinary, pulp and paper, textile, water treatment, etc.; NutriGold, a foliar spray for various crops to farmers; Seed Aid to enhance germination of the seedling; and CartiPep, a protein supplement for cartilage and joints. Nitta Gelatin India Limited also exports its products. The company was formerly known as Kerala Chemicals & Proteins Limited and changed its name to Nitta Gelatin India Limited in 2008. Nitta Gelatin India Limited was incorporated in 1975 and is based in Kochi, India.