Chambal Fertilisers & Chemicals reports 254% CAPEX growth in 2016 and 8.1% Revenue growth
11-05-2016 • About Chambal Fertilisers & Chemicals (
$CHAMBLFERT) • By InTwits
Chambal Fertilisers & Chemicals reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chambal Fertilisers & Chemicals is a growth stock: FY2016 revenue growth was 8.1%, 5 year revenue CAGR was 13.1% at FY2016 ROIC 9.4%
- Chambal Fertilisers & Chemicals has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: ₹6,771m in FY2016, ₹1,914m in FY2015, ₹1,508m in FY2014, ₹1,003m in FY2013, ₹1,242m in FY2012
- The company has business model with low profitability: ROIC is 9.4%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 1.3x
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 increased on 8.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from 13.4% to 14.6% in FY2016. EBITDA Margin followed a declining trend at -1.2 pp per annum in the last 5 years.
Net Income margin decreased slightly on 0.97 pp from 3.0% to 2.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 6.4%. CAPEX/Revenue increased on 5.2 pp from 1.2% in FY2013 to 6.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.4%. The company invested a large share of EBITDA (77.3%) to CAPEX. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2013 at 1.2% and was growing since that time.
Return on investment
The company operates at low ROIC (9.4%) and ROE (9.3%). ROIC increased slightly on 0.86 pp from 8.6% to 9.4% in FY2016. ROE decreased on 4.3 pp from 13.7% to 9.3% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 8.6%.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 4.5x to 5.4x in FY2016. Debt surged on 30.6% while cash decreased slightly on 0.82%.
Chambal Fertilisers & Chemicals has short term refinancing risk: cash is only 4.5% of short term debt.
Financial and operational results
Chambal Fertilisers & Chemicals ($CHAMBLFERT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 75,382 | 82,020 | 89,106 | 97,377 | 105,273 | 8.1% |
| EBITDA | 9,920 | 8,769 | 9,481 | 7,981 | 8,762 | 9.8% |
| Net Income | 1,583 | 2,385 | 2,441 | 2,946 | 2,161 | -26.7% |
Balance Sheet
|
|---|
| Cash | 2,218 | 2,343 | 1,831 | 1,911 | 1,895 | -0.8% |
| Short Term Debt | 22,884 | 38,764 | 34,370 | 30,178 | 42,537 | 41.0% |
| Long Term Debt | 11,860 | 11,277 | 10,194 | 7,819 | 7,083 | -9.4% |
Cash flow
|
|---|
| Capex | 1,242 | 1,003 | 1,508 | 1,914 | 6,771 | 253.8% |
Ratios
|
|---|
| Revenue growth | 32.6% | 8.8% | 8.6% | 9.3% | 8.1% | |
| EBITDA growth | 16.2% | -11.6% | 8.1% | -15.8% | 9.8% | |
|
|---|
| EBITDA Margin | 13.2% | 10.7% | 10.6% | 8.2% | 8.3% | 0.1% |
| Net Income Margin | 2.1% | 2.9% | 2.7% | 3.0% | 2.1% | -1.0% |
| CAPEX, % of revenue | 1.6% | 1.2% | 1.7% | 2.0% | 6.4% | 4.5% |
|
|---|
| ROIC | 13.6% | 9.3% | 9.2% | 8.6% | 9.4% | 0.9% |
| ROE | 9.7% | 13.4% | 12.5% | 13.7% | 9.3% | -4.3% |
| Net Debt/EBITDA | 3.3x | 5.4x | 4.5x | 4.5x | 5.4x | 0.9x |
Peers in Fertilizers
Below we provide Chambal Fertilisers & Chemicals benchmarking against other companies in Fertilizers 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 |
|---|
| Coromandel International ($COROMANDEL) | - | -38.7% | 18.8% | 13.4% | 0.9% |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 11.5% | 17.9% | -13.4% | -1.6% | - |
| Basant Agro Tech (India) ($BASANTGL) | 63.9% | 5.3% | 7.7% | -2.4% | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 41.2% | -29.1% | -14.7% | -15.2% | - |
| Rama Phosphates ($RAMAPHO) | 56.4% | 11.4% | -13.9% | -25.0% | - |
| |
|---|
| Median (5 companies) | 48.8% | 5.3% | -13.4% | -2.4% | 0.9% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | - | 8.8% | 8.6% | 9.3% | 8.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coromandel International ($COROMANDEL) | 10.8% | 16.3% | 14.0% | 12.8% | 8.7% |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 22.4% | 13.6% | 12.1% | 12.3% | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 11.0% | 6.8% | 9.2% | 10.5% | - |
| Basant Agro Tech (India) ($BASANTGL) | 8.7% | 9.4% | 8.6% | 9.1% | - |
| Rama Phosphates ($RAMAPHO) | 11.2% | 7.7% | 0.2% | 0.1% | - |
| |
|---|
| Median (5 companies) | 11.0% | 9.4% | 9.2% | 10.5% | 8.7% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 13.2% | 10.7% | 10.6% | 8.2% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gujarat State Fertilizers & Chemicals ($GSFC) | 7.7% | 6.6% | 5.6% | 2.6% | - |
| Coromandel International ($COROMANDEL) | - | 4.4% | 1.6% | 1.2% | 1.3% |
| |
|---|
| Median (2 companies) | 4.1% | 4.4% | 3.6% | 1.9% | 1.3% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 1.6% | 1.2% | 1.7% | 2.0% | 6.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coromandel International ($COROMANDEL) | 22.2% | 16.7% | 18.3% | 20.5% | 12.5% |
| Gujarat State Fertilizers & Chemicals ($GSFC) | 27.1% | 14.2% | 9.2% | 10.2% | - |
| Kothari Industrial Corporation ($KOTIC) | - | -5.5% | - | - | - |
| Teesta Agro Industries ($TEEAI) | - | - | - | - | - |
| Rama Phosphates ($RAMAPHO) | 40.0% | 23.5% | - | - | - |
| |
|---|
| Median (7 companies) | 22.2% | 13.6% | 9.2% | 15.4% | 12.5% |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 13.6% | 9.3% | 9.2% | 8.6% | 9.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coromandel International ($COROMANDEL) | 1.8x | 2.8x | 1.4x | 2.0x | 2.9x |
| Gujarat State Fertilizers & Chemicals ($GSFC) | -0.2x | 1.6x | 0.6x | 0.6x | - |
| Basant Agro Tech (India) ($BASANTGL) | 3.9x | 3.8x | 0.0x | 0.0x | - |
| Khaitan Chemicals & Fertilizers ($KHAICHEM) | 2.4x | 9.0x | 5.3x | 0.0x | - |
| Rama Phosphates ($RAMAPHO) | 0.8x | 1.2x | 0.0x | 0.0x | - |
| |
|---|
| Median (5 companies) | 1.8x | 2.8x | 0.6x | 0.0x | 1.5x |
|---|
| Chambal Fertilisers & Chemicals ($CHAMBLFERT) | 3.3x | 5.4x | 4.5x | 4.5x | 5.4x |
