Ifgl Refractories Net Income dropped on 21.0% and Revenue decreased on 8.9%
14-05-2016 • About Ifgl Refractories (
$IFGLREFRAC) • By InTwits
Ifgl Refractories reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ifgl Refractories has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 2.8%
- CAPEX is quite volatile: ₹169m in FY2016, ₹199m in FY2015, ₹100m in FY2014, ₹194m in FY2013, ₹49m in FY2012
- The company has highly profitable business model: ROIC is 13.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Ifgl Refractories's Revenue decreased on 8.9%. Revenue decline was accelerating on average at -8.4 pp per annum in FY2012-FY2016. EBITDA Margin showed almost no change in FY2016.
Net Income margin decreased slightly on 0.90 pp from 6.7% to 5.9% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 2.4%. CAPEX/Revenue decreased slightly on 0.53 pp from 2.9% in FY2013 to 2.4% in FY2016. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at good ROIC (13.5%) while ROE is low (11.5%). ROIC decreased on 2.3 pp from 15.7% to 13.5% in FY2016. ROE decreased on 4.6 pp from 16.1% to 11.5% in FY2016.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 0.9x to 0.2x in FY2016. Debt dropped on 40.2% while cash jumped on 41.8%.
Ifgl Refractories has no short term refinancing risk: cash is higher than short term debt (105.7%).
Financial and operational results
Ifgl Refractories ($IFGLREFRAC) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,039 | 6,712 | 7,776 | 7,868 | 7,170 | -8.9% |
| EBITDA | 795 | 571 | 1,170 | 893 | 811 | -9.2% |
| Net Income | 398 | 282 | 640 | 531 | 420 | -21.0% |
Balance Sheet
|
|---|
| Cash | 140 | 107 | 297 | 379 | 538 | 41.8% |
| Short Term Debt | 490 | 769 | 764 | 873 | 509 | -41.7% |
| Long Term Debt | 638 | 539 | 405 | 289 | 186 | -35.8% |
Cash flow
|
|---|
| Capex | 49 | 194 | 100 | 199 | 169 | -15.0% |
Ratios
|
|---|
| Revenue growth | 28.2% | 11.2% | 15.9% | 1.2% | -8.9% | |
| EBITDA growth | 97.2% | -28.2% | 105.0% | -23.7% | -9.2% | |
|
|---|
| EBITDA Margin | 13.2% | 8.5% | 15.1% | 11.3% | 11.3% | -0.0% |
| Net Income Margin | 6.6% | 4.2% | 8.2% | 6.7% | 5.9% | -0.9% |
| CAPEX, % of revenue | 0.8% | 2.9% | 1.3% | 2.5% | 2.4% | -0.2% |
|
|---|
| ROIC | 20.0% | 11.7% | 23.5% | 15.7% | 13.5% | -2.3% |
| ROE | 21.6% | 12.9% | 23.2% | 16.1% | 11.5% | -4.6% |
| Net Debt/EBITDA | 1.2x | 2.1x | 0.7x | 0.9x | 0.2x | -0.7x |
Peers in Other Industrial Goods
Below we provide Ifgl Refractories benchmarking against other companies in Other Industrial Goods 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 |
|---|
| Gee ($GEE) | 17.7% | 7.6% | -10.2% | 7.6% | - |
| Vesuvius India ($VESUVIUS) | 4.1% | 6.9% | 8.4% | 7.2% | - |
| Amd Industries ($AMDIND) | 31.8% | -15.5% | 21.0% | -9.9% | - |
| Graphite India ($GRPHIDM) | - | 1.9% | 3.1% | -14.9% | -10.4% |
| Heg ($HEG) | 27.9% | 13.6% | -9.8% | -15.9% | - |
| |
|---|
| Median (7 companies) | 27.9% | 7.6% | 3.1% | -14.9% | -10.4% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | - | 11.2% | 15.9% | 1.2% | -8.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snl Bearings ($SNL) | - | - | - | 29.0% | - |
| Vesuvius India ($VESUVIUS) | 17.7% | 18.8% | 15.6% | 18.0% | - |
| Heg ($HEG) | 17.0% | 18.1% | 16.9% | 16.3% | - |
| Amd Industries ($AMDIND) | 15.3% | 12.3% | 16.4% | 15.3% | - |
| Graphite India ($GRPHIDM) | 16.9% | 14.1% | 12.7% | 8.2% | 9.3% |
| |
|---|
| Median (8 companies) | 15.3% | 12.3% | 14.1% | 11.8% | 9.3% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 13.2% | 8.5% | 15.1% | 11.3% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vesuvius India ($VESUVIUS) | 4.2% | 4.0% | 3.4% | 2.7% | - |
| Heg ($HEG) | 14.4% | 9.3% | 18.7% | 2.6% | - |
| Insilco ($INSILCO) | - | - | - | 1.6% | - |
| Graphite India ($GRPHIDM) | 7.1% | 2.7% | 1.2% | 1.6% | 3.6% |
| |
|---|
| Median (4 companies) | 5.6% | 3.3% | 3.1% | 2.1% | 3.6% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 0.8% | 2.9% | 1.3% | 2.5% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vesuvius India ($VESUVIUS) | 25.0% | 25.0% | 19.3% | 21.6% | - |
| Heg ($HEG) | 9.0% | 10.4% | 8.3% | 5.5% | - |
| Graphite India ($GRPHIDM) | 12.6% | 8.6% | 8.0% | 4.2% | 4.3% |
| De Nora India ($DENORA) | 61.7% | 19.1% | - | - | - |
| Snl Bearings ($SNL) | 61.1% | 48.2% | 31.9% | - | - |
| |
|---|
| Median (13 companies) | 15.3% | 12.4% | 19.3% | 5.5% | 4.3% |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 20.0% | 11.7% | 23.5% | 15.7% | 13.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Heg ($HEG) | 5.2x | 4.1x | 3.3x | 4.1x | - |
| Graphite India ($GRPHIDM) | 2.0x | 2.7x | 1.7x | 2.4x | 2.0x |
| Iykot Hitech Toolroom ($IYKOTHITE) | 0.0x | - | - | 0.0x | - |
| Snl Bearings ($SNL) | 0.2x | 0.6x | 1.1x | 0.0x | 0.0x |
| Gee ($GEE) | 3.2x | 2.8x | 0.0x | 0.0x | - |
| |
|---|
| Median (7 companies) | 1.4x | 1.6x | 0.5x | 0.0x | 0.0x |
|---|
| Ifgl Refractories ($IFGLREFRAC) | 1.2x | 2.1x | 0.7x | 0.9x | 0.2x |
