Jayant Agro-Organics reports 119% EBITDA growth in 2016 while 11.6% Revenue decline
07-05-2016 • About Jayant Agro-Organics (
$JAYAGROGN) • By InTwits
Jayant Agro-Organics reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Jayant Agro-Organics has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: ₹93m in FY2016, ₹143m in FY2015, ₹142m in FY2014, ₹376m in FY2013, ₹581m in FY2012
- The company has highly profitable business model: ROIC is 12.3%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 1.0x
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 dropped on 11.6%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.2 pp from 2.1% to 5.3% in FY2016.
Net Income margin increased slightly on 1.2 pp from 0.68% to 1.8% in FY2016.
Investments (CAPEX, working capital and M&A)
Jayant Agro-Organics's CAPEX/Revenue was 0.67% in FY2016. CAPEX/Revenue decreased slightly on 1.6 pp from 2.3% in FY2013 to 0.67% in FY2016. It's average CAPEX/Revenue for the last three years was 0.84%. CAPEX as a % of Revenue stuck to a declining trend at -0.64 pp per annum in FY2012-FY2016.
Return on investment
The company operates at good ROIC (12.3%) while ROE is low (10.9%). ROIC increased on 8.5 pp from 3.7% to 12.3% in FY2016. ROE increased on 6.1 pp from 4.8% to 10.9% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 3.7%. During the last 5 years ROE bottomed in FY2015 at 4.8%.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA dropped on 3.0x from 6.5x to 3.4x in FY2016. Debt surged on 14.5% while cash decreased on 3.3%. During the last 5 years Net Debt/EBITDA topped in FY2015 at 6.5x.
Jayant Agro-Organics has short term refinancing risk: cash is only 8.1% of short term debt.
Financial and operational results
Jayant Agro-Organics ($JAYAGROGN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18,322 | 16,210 | 15,378 | 15,561 | 13,754 | -11.6% |
| EBITDA | 878 | 954 | 779 | 334 | 730 | 118.6% |
| Net Income | 314 | 362 | 406 | 105 | 252 | 140.0% |
Balance Sheet
|
|---|
| Cash | 154 | 88 | 211 | 224 | 217 | -3.3% |
| Short Term Debt | 2,119 | 2,587 | 3,455 | 2,218 | 2,662 | 20.1% |
| Long Term Debt | 506 | 484 | 351 | 163 | 64 | -60.7% |
Cash flow
|
|---|
| Capex | 581 | 376 | 142 | 143 | 93 | -35.1% |
Ratios
|
|---|
| Revenue growth | 53.9% | -11.5% | -5.1% | 1.2% | -11.6% | |
| EBITDA growth | 37.3% | 8.7% | -18.3% | -57.1% | 118.6% | |
|
|---|
| EBITDA Margin | 4.8% | 5.9% | 5.1% | 2.1% | 5.3% | 3.2% |
| Net Income Margin | 1.7% | 2.2% | 2.6% | 0.7% | 1.8% | 1.2% |
| CAPEX, % of revenue | 3.2% | 2.3% | 0.9% | 0.9% | 0.7% | -0.2% |
|
|---|
| ROIC | 19.1% | 17.5% | 11.1% | 3.7% | 12.3% | 8.5% |
| ROE | 23.8% | 22.6% | 20.6% | 4.8% | 10.9% | 6.1% |
| Net Debt/EBITDA | 2.8x | 3.1x | 4.6x | 6.5x | 3.4x | -3.0x |
Peers in Specialty Chemicals
Below you can find Jayant Agro-Organics benchmarking vs. other companies in Specialty Chemicals 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 |
|---|
| 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 ($NITTAGELA) | - | 27.8% | -5.5% | 21.2% | -0.5% |
| |
|---|
| Median (27 companies) | 19.0% | 14.1% | 13.7% | 10.9% | -0.5% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | - | -11.5% | -5.1% | 1.2% | -11.6% |
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 ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| |
|---|
| Median (32 companies) | 10.7% | 12.8% | 10.6% | 10.8% | 15.3% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 4.8% | 5.9% | 5.1% | 2.1% | 5.3% |
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 ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| |
|---|
| Median (16 companies) | 5.2% | 4.7% | 4.5% | 5.2% | 5.5% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 3.2% | 2.3% | 0.9% | 0.9% | 0.7% |
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 ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | - |
| |
|---|
| Median (35 companies) | 14.7% | 14.8% | 12.3% | 17.8% | 21.2% |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 19.1% | 17.5% | 11.1% | 3.7% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kiri Industries ($KIRIINDUS) | 8.2x | 31.3x | 10.6x | 7.7x | - |
| Anil ($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 | - |
| Meghmani Organics ($MEGH) | 4.2x | 3.7x | 4.3x | 3.1x | - |
| |
|---|
| Median (30 companies) | 1.4x | 1.5x | 1.7x | 0.0x | 0.0x |
|---|
| Jayant Agro-Organics ($JAYAGROGN) | 2.8x | 3.1x | 4.6x | 6.5x | 3.4x |
