Maithan Alloys Net Income surged on 49.9% and EBITDA Margin increased slightly on 1.2 pp from 9.9% to 11.1%
14-05-2016 • About Maithan Alloys (
$MAITHANALL) • By InTwits
Maithan Alloys reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Maithan Alloys has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's in pair with industry average of 7.7%
- CAPEX is quite volatile: ₹119m in FY2016, ₹141m in FY2015, ₹236m in FY2014, ₹989m in FY2013, ₹1,199m in FY2012
- The company has highly profitable business model: ROIC is 19.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Maithan Alloys's Revenue increased on 4.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.9 pp from 8.2% to 17.1% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 5.3% and was growing since that time.
Net Income margin increased on 2.1 pp from 4.8% to 6.9% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at 1.2% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.0% in FY2016. Maithan Alloys showed decline in CAPEX/Revenue of 9.4 pp from 10.4% in FY2013 to 1.0% in FY2016. It's average CAPEX/Revenue for the last three years was 1.6%. CAPEX as a % of Revenue followed a declining trend at -4.7 pp per annum in the last 5 years.
Return on investment
The company operates at high and attractive ROE (22.0%) while ROIC is a bit lower (19.0%). ROIC increased on 3.7 pp from 15.3% to 19.0% in FY2016. ROE increased on 4.5 pp from 17.6% to 22.0% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at 5.5% and was growing since that time. During the last 5 years ROE bottomed in FY2014 at 4.2% and was growing since that time.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 1.8x to 0.8x in FY2016. Debt dropped on 34.8% while cash jumped on 210%. During the last 5 years Net Debt/EBITDA topped in FY2014 at 4.6x and was declining since that time.
Maithan Alloys has short term refinancing risk: cash is only 61.9% of short term debt.
Management team
The company's CEO is Subhas Chandra Agarwalla. Subhas Chandra Agarwalla has 14 years tenure with the company.
Financial and operational results
Maithan Alloys ($MAITHANALL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,984 | 9,521 | 9,623 | 11,065 | 11,508 | 4.0% |
| EBITDA | 702 | 879 | 508 | 1,095 | 1,272 | 16.2% |
| Net Income | 454 | 444 | 114 | 526 | 788 | 49.9% |
Balance Sheet
|
|---|
| Cash | 371 | 231 | 246 | 115 | 357 | 210.3% |
| Short Term Debt | 66 | 442 | 1,034 | 923 | 577 | -37.5% |
| Long Term Debt | 1,661 | 1,668 | 1,543 | 1,213 | 817 | -32.7% |
Cash flow
|
|---|
| Capex | 1,199 | 989 | 236 | 141 | 119 | -15.9% |
Ratios
|
|---|
| Revenue growth | -1.5% | 59.1% | 1.1% | 15.0% | 4.0% | |
| EBITDA growth | -35.1% | 25.2% | -42.2% | 115.5% | 16.2% | |
|
|---|
| EBITDA Margin | 11.7% | 9.2% | 5.3% | 9.9% | 11.1% | 1.2% |
| Net Income Margin | 7.6% | 4.7% | 1.2% | 4.8% | 6.9% | 2.1% |
| CAPEX, % of revenue | 20.0% | 10.4% | 2.5% | 1.3% | 1.0% | -0.2% |
|
|---|
| ROIC | 16.3% | 15.1% | 5.5% | 15.3% | 19.0% | 3.7% |
| ROE | 21.4% | 17.8% | 4.2% | 17.6% | 22.0% | 4.5% |
| Net Debt/EBITDA | 1.9x | 2.1x | 4.6x | 1.8x | 0.8x | -1.0x |
Peers in Iron & Steel/Interm.Products
Below we provide Maithan Alloys benchmarking against other companies in Iron & Steel/Interm.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 |
|---|
| Uttam Galva Steels ($UTTAMSTL) | 12.0% | 11.0% | -13.2% | 55.0% | - |
| Modern Steels ($MDRNSTL) | -2.6% | -22.7% | 0.7% | 20.3% | - |
| Pennar Industries ($PENIND) | 0.9% | -8.5% | 0.5% | 12.7% | - |
| Vaswani Industries ($VASWANI) | 51.4% | -2.1% | 5.6% | 12.6% | - |
| S.A.L.Steel ($SALSTEEL) | 2.3% | 15.8% | -13.2% | 10.9% | - |
| |
|---|
| Median (32 companies) | 15.4% | 3.2% | 3.4% | -1.6% | -16.9% |
|---|
| Maithan Alloys ($MAITHANALL) | - | 59.1% | 1.1% | 15.0% | 4.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 37.5% | 30.5% | 28.1% | 29.8% | 17.2% |
| Sarda Energy & Minerals ($SARDAEN) | 16.3% | 21.5% | 21.3% | 21.5% | - |
| Bhushan Steel ($BHUSANSTL) | 31.2% | 32.3% | 28.1% | 20.4% | - |
| Jsw Steel ($JSWSTEEL) | 17.8% | 17.1% | 17.9% | 17.7% | - |
| Tata Metaliks ($TATAMETALI) | -9.6% | 0.9% | 6.8% | 14.6% | 16.8% |
| |
|---|
| Median (29 companies) | 9.4% | 9.0% | 7.4% | 7.3% | 15.2% |
|---|
| Maithan Alloys ($MAITHANALL) | 11.7% | 9.2% | 5.3% | 9.9% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jindal Steel & Power ($JINDALSTEL) | 34.2% | 47.6% | 69.6% | 26.4% | 21.8% |
| Jayaswal Neco Industries ($JAYNECOIND) | 20.4% | 44.0% | 31.1% | 17.3% | - |
| Steel Authority Of India ($SAIL) | 20.9% | 20.7% | 19.3% | 16.9% | 17.3% |
| Bhushan Steel ($BHUSANSTL) | 47.2% | 44.0% | 50.4% | 16.2% | - |
| Jsw Steel ($JSWSTEEL) | 11.9% | 14.7% | 11.3% | 12.7% | - |
| |
|---|
| Median (17 companies) | 7.5% | 11.6% | 7.7% | 5.3% | 9.6% |
|---|
| Maithan Alloys ($MAITHANALL) | 20.0% | 10.4% | 2.5% | 1.3% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tata Metaliks ($TATAMETALI) | -23.5% | -3.7% | 19.9% | 57.4% | 42.6% |
| Pennar Industries ($PENIND) | 26.8% | 18.4% | 12.3% | 15.7% | - |
| Kirloskar Ferrous Industries ($KIRLFER) | 19.1% | 16.8% | 12.4% | 14.7% | 15.9% |
| Gallantt Metal ($GALLANTT) | 8.7% | 11.7% | 8.5% | 11.7% | - |
| Sunflag Iron & Steel Co ($SUNFLAG) | 7.2% | 5.6% | 8.3% | 11.2% | - |
| |
|---|
| Median (40 companies) | 6.8% | 5.5% | 6.0% | 4.6% | 2.1% |
|---|
| Maithan Alloys ($MAITHANALL) | 16.3% | 15.1% | 5.5% | 15.3% | 19.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Visa Steel ($VISASTEEL) | 20.1x | - | 24.4x | 187.1x | - |
| Ismt ($ISMTLTD) | 5.3x | 9.8x | 19.9x | 48.3x | - |
| Kic Metaliks ($KAJARIR) | 9.2x | 3.0x | 18.2x | 19.8x | - |
| Bhushan Steel ($BHUSANSTL) | 6.3x | 8.6x | 12.9x | 17.7x | - |
| Prakash Industries ($PRAKASH) | 2.5x | 2.8x | 2.5x | 11.9x | - |
| |
|---|
| Median (26 companies) | 4.6x | 4.4x | 3.2x | 2.0x | 1.1x |
|---|
| Maithan Alloys ($MAITHANALL) | 1.9x | 2.1x | 4.6x | 1.8x | 0.8x |
