Ifb Agro Industries CAPEX jumped on 72.9% and Revenue increased on 4.8%
14-05-2016 • About Ifb Agro Industries (
$IFBAGRO) • By InTwits
Ifb Agro Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ifb Agro Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's in pair with industry average of 5.9%
- CAPEX is quite volatile: ₹450m in FY2016, ₹260m in FY2015, ₹479m in FY2014, ₹82m in FY2013, ₹197m in FY2012
- The company has business model with low profitability: ROIC is 8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Ifb Agro Industries's Revenue increased on 4.8%. During the last 5 years Revenue growth topped in FY2015 at 19.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.50 pp from 3.7% to 4.2% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2015 at 5.1%.
Net Income margin increased on 2.1 pp from 2.7% to 4.8% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Ifb Agro Industries had CAPEX/Revenue of 7.4%. Ifb Agro Industries's CAPEX/Revenue increased on 5.6 pp from 1.8% in FY2013 to 7.4% in FY2016. Average CAPEX/Revenue for the last three years was 7.2%. Ifb Agro Industries maintained rich investment policy and has spent a lot to CAPEX (102% of EBITDA).
Return on investment
The company operates at good ROE (12.4%) while ROIC is low (8.0%). ROIC increased on 3.3 pp from 4.8% to 8.0% in FY2016. ROE increased on 5.1 pp from 7.3% to 12.4% in FY2016. ROIC declined at -7.2 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA jumped on 2.8x from -2.0x to 0.8x in FY2016. Debt surged while cash dropped on 76.3%.
Ifb Agro Industries has no short term refinancing risk: cash is higher than short term debt (221.3%).
Financial and operational results
Ifb Agro Industries ($IFBAGRO) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,282 | 4,514 | 4,892 | 5,830 | 6,109 | 4.8% |
| EBITDA | 492 | 488 | 452 | 296 | 443 | 49.5% |
| Net Income | 265 | 262 | 417 | 156 | 293 | 88.3% |
Balance Sheet
|
|---|
| Cash | 82 | 79 | 476 | 579 | 137 | -76.3% |
| Short Term Debt | 2 | 0 | 42 | 0 | 62 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 434 | |
Cash flow
|
|---|
| Capex | 197 | 82 | 479 | 260 | 450 | 72.9% |
Ratios
|
|---|
| Revenue growth | -4.8% | 5.4% | 8.4% | 19.2% | 4.8% | |
| EBITDA growth | 39.4% | -0.8% | -7.4% | -34.5% | 49.5% | |
|
|---|
| EBITDA Margin | 11.5% | 10.8% | 9.2% | 5.1% | 7.2% | 2.2% |
| Net Income Margin | 6.2% | 5.8% | 8.5% | 2.7% | 4.8% | 2.1% |
| CAPEX, % of revenue | 4.6% | 1.8% | 9.8% | 4.5% | 7.4% | 2.9% |
|
|---|
| ROIC | 33.3% | 26.7% | 18.8% | 4.8% | 8.0% | 3.3% |
| ROE | 26.6% | 19.4% | 22.9% | 7.3% | 12.4% | 5.1% |
| Net Debt/EBITDA | -0.2x | -0.2x | -1.0x | -2.0x | 0.8x | 2.8x |
Peers in Breweries & Distilleries
Below you can find Ifb Agro Industries benchmarking vs. other companies in Breweries & Distilleries 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 |
|---|
| Pioneer Distilleries ($PIONDIST) | 94.2% | -0.9% | 25.1% | 17.0% | - |
| United Breweries ($UBL) | - | 9.5% | 8.5% | 10.8% | 8.3% |
| Som Distilleries & Breweries ($SDBL) | 11.0% | 5.0% | -6.5% | 8.3% | - |
| G.M.Breweries ($GMBREW) | - | 12.0% | 0.3% | 6.5% | 17.0% |
| Khoday India ($KHODAY) | 19.9% | -24.7% | 34.3% | -5.6% | - |
| |
|---|
| Median (7 companies) | 19.9% | 9.5% | 8.5% | 6.5% | 12.6% |
|---|
| Ifb Agro Industries ($IFBAGRO) | - | 5.4% | 8.4% | 19.2% | 4.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -3.0% | -7.5% | 6.6% | 19.5% | - |
| Tilaknagar Industries ($TI) | 26.2% | 22.7% | 21.0% | 15.0% | - |
| Som Distilleries & Breweries ($SDBL) | 14.4% | 15.0% | 15.0% | 14.9% | - |
| United Breweries ($UBL) | 11.6% | 12.3% | 10.3% | 13.3% | 14.4% |
| G.M.Breweries ($GMBREW) | 10.0% | 9.1% | 13.7% | 11.5% | 23.8% |
| |
|---|
| Median (10 companies) | 12.2% | 12.3% | 13.7% | 8.8% | 19.1% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 11.5% | 10.8% | 9.2% | 5.1% | 7.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tilaknagar Industries ($TI) | 20.6% | 10.0% | 14.8% | 13.7% | - |
| Pioneer Distilleries ($PIONDIST) | 29.8% | 35.0% | 30.0% | 12.3% | - |
| United Breweries ($UBL) | 10.7% | 9.8% | 5.0% | 8.7% | 4.8% |
| United Spirits ($UNITDSPR) | 7.4% | 2.8% | 2.2% | 1.8% | - |
| Som Distilleries & Breweries ($SDBL) | 12.3% | 3.3% | 0.9% | 1.5% | - |
| |
|---|
| Median (6 companies) | 10.7% | 6.7% | 3.6% | 5.2% | 2.4% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 4.6% | 1.8% | 9.8% | 4.5% | 7.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pioneer Distilleries ($PIONDIST) | -12.3% | -17.4% | -3.3% | 70.5% | - |
| G.M.Breweries ($GMBREW) | 18.4% | 17.0% | 21.9% | 18.0% | 46.7% |
| Som Distilleries & Breweries ($SDBL) | 23.3% | 22.2% | 19.2% | 16.5% | - |
| United Breweries ($UBL) | 11.5% | 11.6% | 8.1% | 14.3% | 17.1% |
| Tilaknagar Industries ($TI) | 11.6% | 11.7% | 10.7% | 4.6% | - |
| |
|---|
| Median (11 companies) | 11.5% | 8.7% | 8.1% | 15.4% | 31.9% |
|---|
| Ifb Agro Industries ($IFBAGRO) | 33.3% | 26.7% | 18.8% | 4.8% | 8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Spirits ($UNITDSPR) | 7.3x | 6.1x | - | 8.4x | - |
| Tilaknagar Industries ($TI) | 4.3x | 3.8x | 4.8x | 8.4x | - |
| Pioneer Distilleries ($PIONDIST) | - | - | 10.4x | 2.1x | - |
| United Breweries ($UBL) | 2.0x | 2.5x | 2.7x | 1.3x | 0.9x |
| Som Distilleries & Breweries ($SDBL) | 0.5x | -0.1x | -0.0x | 0.7x | - |
| |
|---|
| Median (7 companies) | 2.5x | 2.5x | 1.2x | 1.3x | 0.3x |
|---|
| Ifb Agro Industries ($IFBAGRO) | -0.2x | -0.2x | -1.0x | -2.0x | 0.8x |
