Ifb Industries reports 22.0% EBITDA decline in 2016 and 2.4 pp EBITDA Margin decline from 7.1% to 4.6%
18-05-2016 • About Ifb Industries (
$IFBIND) • By InTwits
Ifb Industries reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Ifb Industries is a fast growth stock: FY2016 revenue growth was 19.0%, 5 year revenue CAGR was 17.2% at FY2016 ROIC 5.4%
- Ifb Industries has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.0%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: ₹1,608m in FY2016, ₹300m in FY2015, ₹508m in FY2014, ₹205m in FY2013, ₹586m in FY2012
- The company has potentially unprofitable business model: ROIC is 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Ifb Industries's Revenue surged on 19.0%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.4 pp from 7.1% to 4.6% in FY2016.
Net Income margin decreased slightly on 1.9 pp from 3.9% to 2.1% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 4.6%. CAPEX/Revenue decreased slightly on 1.1 pp from 5.7% in FY2013 to 4.6% in FY2016. For the last three years the average CAPEX/Revenue was 5.7%. To maintain its fast growth the company invested a large share of EBITDA (98.3%) to CAPEX.
Return on investment
The company operates at low ROIC (5.4%) and ROE (7.8%). ROIC decreased on 6.0 pp from 11.4% to 5.4% in FY2016. ROE decreased on 5.9 pp from 13.7% to 7.8% in FY2016.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt dropped on 52.4% while cash increased on 9.4%.
Ifb Industries has no short term refinancing risk: cash is higher than short term debt (311.4%).
Valuation and dividends
The company's trades at EV/EBITDA 22.8x and P/E 51.8x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 1,349.2x with the industry average at 22.8x.
Management team
Prabir Chatterjee is a the company's CFO. Prabir Chatterjee has spent 5 years at the company.
Financial and operational results
Ifb Industries ($IFBIND) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8,030 | 9,159 | 10,208 | 12,615 | 15,009 | 19.0% |
| EBITDA | 494 | 516 | 599 | 894 | 697 | -22.0% |
| Net Income | 305 | 315 | 216 | 497 | 314 | -36.9% |
Balance Sheet
|
|---|
| Cash | 528 | 436 | 672 | 438 | 480 | 9.4% |
| Short Term Debt | 0 | 99 | 478 | 345 | 154 | -55.3% |
| Long Term Debt | 0 | 0 | 0 | 0 | 10 | |
Cash flow
|
|---|
| Capex | 588 | 518 | 581 | 876 | 685 | -21.8% |
Ratios
|
|---|
| Revenue growth | 18.1% | 14.1% | 11.5% | 23.6% | 19.0% | |
| EBITDA growth | -22.6% | 4.5% | 16.0% | 49.3% | -22.0% | |
|
|---|
| EBITDA Margin | 6.2% | 5.6% | 5.9% | 7.1% | 4.6% | -2.4% |
| Net Income Margin | 3.8% | 3.4% | 2.1% | 3.9% | 2.1% | -1.9% |
| CAPEX, % of revenue | 7.3% | 5.7% | 5.7% | 6.9% | 4.6% | -2.4% |
|
|---|
| ROIC | 14.4% | 11.0% | 9.9% | 11.4% | 5.4% | -6.0% |
| ROE | 13.5% | 11.3% | 6.6% | 13.7% | 7.8% | -5.9% |
| Net Debt/EBITDA | -1.1x | -0.7x | -0.3x | -0.1x | -0.5x | -0.3x |
Peers in Household Appliances
Below we provide Ifb Industries benchmarking against other companies in Household Appliances 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -3.6% | -17.8% | 6.6% | 22.3% | - |
| Khaitan Electricals ($KHAITANELE) | -5.5% | 16.9% | 1.1% | -16.9% | - |
| Value Industries ($VALUEIND) | -11.7% | 20.3% | 6.1% | -74.1% | - |
| |
|---|
| Median (3 companies) | -5.5% | 16.9% | 6.1% | -16.9% | - |
|---|
| Ifb Industries ($IFBIND) | - | 14.1% | 11.5% | 23.6% | 19.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -3.5% | -3.5% | 2.0% | 3.5% | - |
| |
|---|
| Median (1 company) | 2.6% | 6.1% | 2.8% | 3.5% | - |
|---|
| Ifb Industries ($IFBIND) | 6.2% | 5.6% | 5.9% | 7.1% | 4.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | 5.4% | 0.3% | 2.0% | 3.0% | - |
| |
|---|
| Median (1 company) | 2.9% | 0.3% | 2.0% | 3.0% | - |
|---|
| Ifb Industries ($IFBIND) | 7.3% | 5.7% | 5.7% | 6.9% | 4.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | -22.0% | -20.1% | -0.6% | 6.6% | - |
| Khaitan Electricals ($KHAITANELE) | 2.6% | 8.1% | - | - | - |
| Value Industries ($VALUEIND) | - | - | - | - | - |
| |
|---|
| Median (3 companies) | -9.7% | -6.0% | -0.6% | 6.6% | - |
|---|
| Ifb Industries ($IFBIND) | 14.4% | 11.0% | 9.9% | 11.4% | 5.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Panasonic Appliances India Company ($PANASONIC) | - | - | 11.3x | 5.8x | - |
| |
|---|
| Median (1 company) | 11.4x | 3.5x | 0.0x | 5.8x | - |
|---|
| Ifb Industries ($IFBIND) | -1.1x | -0.7x | -0.3x | -0.1x | -0.5x |
