Visaka Industries Debt surged on 12.3% and Revenue decreased slightly on 0.81%
10-05-2016 • About Visaka Industries (
$VIKASAS) • By InTwits
Visaka Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Visaka Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: ₹287m in FY2016, ₹221m in FY2015, ₹909m in FY2014, ₹597m in FY2013, ₹409m in FY2012
- The company has business model with low profitability: ROIC is 8.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 0.81%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.2 pp from 3.6% to 9.8% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
Visaka Industries's CAPEX/Revenue was 2.9% in FY2016. Visaka Industries showed decline in CAPEX/Revenue of 3.7 pp from 6.5% in FY2013 to 2.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 5.1%.
Return on investment
The company operates at low ROIC (8.8%) and ROE (7.2%). ROIC increased slightly on 0.53 pp from 8.3% to 8.8% in FY2016. ROE increased slightly on 0.81 pp from 6.4% to 7.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is 3.4x. Net Debt / EBITDA decreased on 0.1x from 2.7x to 2.6x in FY2016. Debt surged on 12.3% while cash surged on 164%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 3.8x and was declining since that time.
Visaka Industries has short term refinancing risk: cash is only 27.7% of short term debt.
Valuation and dividends
Visaka Industries's trades at EV/EBITDA 4.5x and P/E 7.4x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 6.4x with the industry average at 22.8x.
Financial and operational results
Visaka Industries ($VIKASAS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,504 | 9,156 | 8,921 | 10,131 | 10,049 | -0.8% |
| EBITDA | 824 | 1,108 | 626 | 959 | 953 | -0.6% |
| Net Income | 343 | 507 | 120 | 212 | 244 | 15.1% |
Balance Sheet
|
|---|
| Cash | 488 | 336 | 254 | 281 | 741 | 163.8% |
| Short Term Debt | 1,482 | 2,477 | 1,924 | 2,190 | 2,674 | 22.1% |
| Long Term Debt | 53 | 297 | 725 | 670 | 537 | -19.9% |
Cash flow
|
|---|
| Capex | 409 | 597 | 909 | 221 | 287 | 29.8% |
Ratios
|
|---|
| Revenue growth | 14.7% | 22.0% | -2.6% | 13.6% | -0.8% | |
| EBITDA growth | -6.4% | 34.4% | -43.5% | 53.3% | -0.6% | |
|
|---|
| EBITDA Margin | 11.0% | 12.1% | 7.0% | 9.5% | 9.5% | 0.0% |
| Net Income Margin | 4.6% | 5.5% | 1.3% | 2.1% | 2.4% | 0.3% |
| CAPEX, % of revenue | 5.5% | 6.5% | 10.2% | 2.2% | 2.9% | 0.7% |
|
|---|
| ROIC | 14.1% | 16.6% | 6.4% | 8.3% | 8.8% | 0.5% |
| ROE | 12.5% | 16.6% | 3.6% | 6.4% | 7.2% | 0.8% |
| Net Debt/EBITDA | 1.3x | 2.2x | 3.8x | 2.7x | 2.6x | -0.1x |
Peers in Cement & Cement Products
Below we provide Visaka Industries benchmarking against other companies in Cement & Cement Products 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 |
|---|
| Ncl Industries ($NCLIND) | 38.2% | -15.8% | -3.0% | 30.8% | - |
| Indian Hume Pipe Co ($INDIANHUME) | -20.3% | 34.5% | 18.3% | 22.7% | - |
| J.K.Cement ($JKCEMENT) | 21.8% | 14.7% | -4.0% | 21.2% | - |
| Prism Cement ($PRISMCEM) | 33.2% | 4.9% | 5.3% | 12.5% | - |
| K.C.P ($KCP) | 54.3% | 11.7% | -8.2% | 12.4% | - |
| |
|---|
| Median (16 companies) | 18.4% | 11.4% | 1.8% | 6.2% | -0.2% |
|---|
| Visaka Industries ($VIKASAS) | - | 22.0% | -2.6% | 13.6% | -0.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orient Cement ($ORIENTCEM) | - | 21.5% | 15.0% | 19.8% | 12.2% |
| Saurashtra Cement ($SAURASHCEM) | 11.4% | 21.6% | 11.9% | 16.8% | - |
| Ambuja Cements ($AMBUJACEM) | 25.6% | 18.2% | 19.4% | 16.4% | - |
| India Cements ($INDIACEM) | 20.6% | 18.4% | 12.4% | 15.1% | - |
| Deccan Cements ($DECCANCE) | 22.8% | 13.2% | 14.7% | 14.9% | - |
| |
|---|
| Median (15 companies) | 19.2% | 14.1% | 11.9% | 13.0% | 10.4% |
|---|
| Visaka Industries ($VIKASAS) | 11.0% | 12.1% | 7.0% | 9.5% | 9.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 91.1% | - |
| Orient Cement ($ORIENTCEM) | - | 2.9% | - | 59.7% | 24.5% |
| J.K.Cement ($JKCEMENT) | 6.5% | 18.8% | 55.8% | 16.2% | - |
| Acc ($ACC) | 5.0% | 8.6% | 13.7% | 9.5% | - |
| Birla Corporation ($BIRLACORPN) | 19.1% | 7.1% | 5.5% | 6.9% | 5.1% |
| |
|---|
| Median (12 companies) | 6.5% | 7.2% | 5.5% | 5.9% | 14.8% |
|---|
| Visaka Industries ($VIKASAS) | 5.5% | 6.5% | 10.2% | 2.2% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Saurashtra Cement ($SAURASHCEM) | 38.6% | 42.7% | 13.9% | 26.9% | - |
| Indian Hume Pipe Co ($INDIANHUME) | 7.6% | 13.8% | 15.0% | 18.0% | - |
| Orient Cement ($ORIENTCEM) | - | 57.3% | 15.2% | 15.4% | 4.6% |
| Acc ($ACC) | 20.2% | 12.7% | 11.0% | 9.9% | - |
| K.C.P ($KCP) | 17.6% | 6.7% | 7.1% | 9.3% | - |
| |
|---|
| Median (17 companies) | 15.4% | 8.3% | 6.7% | 8.6% | 3.9% |
|---|
| Visaka Industries ($VIKASAS) | 14.1% | 16.6% | 6.4% | 8.3% | 8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Udaipur Cement Works ($UDAICEMENT) | - | - | - | 17.1x | - |
| Heidelbergcement India ($HEIDELBERG) | 14.0x | 12.2x | 0.0x | 10.4x | - |
| Prism Cement ($PRISMCEM) | 4.8x | 6.0x | 10.0x | 6.0x | - |
| J.K.Cement ($JKCEMENT) | 2.3x | 2.3x | 6.9x | 5.8x | - |
| India Cements ($INDIACEM) | 3.2x | 3.5x | 5.5x | 4.6x | - |
| |
|---|
| Median (14 companies) | 2.1x | 2.8x | 2.6x | 2.6x | 5.1x |
|---|
| Visaka Industries ($VIKASAS) | 1.3x | 2.2x | 3.8x | 2.7x | 2.6x |
